Title Insurance & Closing Fees

Learn about why they are included in your fees

Title Insurance

Title insurance is one of the most important items you must pay for in the purchasing transaction. When you purchase a home and sign the final closing paperwork, you will receive a title to the property and warranty deed. This is the proof you must show that you are the owner of the home.

Title insurance is a form of indemnity insurance predominantly found in the United States which insures against financial loss from defects in title to real property and from the invalidity or unenforceability of mortgage loans.  

Meaning, if the previous owner of the property you are purchasing took out a loan on the home and it didn’t register on the title in time and no one was aware of this new loan, you are not responsible for that lien and the title insurance company would be responsible. It is the title company’s responsibility to ensure you receive a clean title with no liens on the property but the ones you agreed upon when signing your mortgage. This fee is set by the state and is standard with every title company you choose and varies depending on the loan amount. You can check what your title insurance rate would be at http://facc.firstam.com/

Closing/ Settlement Fee

The closing or settlement fee is a charge by the title company to facilitate the closing to prepare the closing paperwork and disburse all the funds to the proper parties. They ensure that no one receives funds until the trans-action is complete and done properly protecting everyone’s interest in the transaction.