Home Buying in Chicago>Question Details

JMR, Home Buyer in 60610

What can I expect to pay for title insurance? Do I have to use the title company suggested by my attorney?

Asked by JMR, 60610 Sun Jun 15, 2008

I have heard that in Chicago you don't get a choice in what title company you use, you have to go with what the attorney assigns. That doesn't sound right to me. If I'm paying, should I get to choose? Is there a big difference in price and services?

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first of all, are you a buyer or a seller?

By convention in Illinois the seller purchases title insurance to protect the buyer (the "owners" policy) and the buyer purchases title insurance for the mortgage lender (the "loan policy.") for a representative chart of costs, see http://wasserlaw.net/Real%20Estate/Title%20Rates.htm.

as a seller, you have NO obligation at all to use the title company selected by your attorney. in fact, you can use whatever company you want. your attorney cannot legally "force" you to use any specific company and you are supposed to be able to choose. that said, most real estate lawyers have a financial relationship with (or at least a strong preference for) one company or another. they will, as a GENERAL rule, try to steer you to the company that pays them a fee (for work they contrubute to the title process). this is perfectly normal here. it is the way we keep our fees as low as we can.

many lawyers maintain affiliations (agency relationships) with multiple title companies. (ok, as a matter of self-promotion, at least i do).

and with all that said, nick is 100% correct; the price differentials are pretty modest from company to company (less even than the "couple hundred" the he quotes...)

as a buyer, the fact is that it is almost always cheaper to simply follow along with the seller and use the same title company for the loan policy. i have only seen three instances in 23 years where it was cheaper for the buyer to go somewhere else..,..alll three, very unique situations.
1 vote Thank Flag Link Sun Jun 15, 2008
Many times, the title insurance company is chosen “by default” by a mortgage broker or realtor, and many buyers don’t realize that there are other options out there. While the premium for title insurance is usually paid only once, at closing, the differences in costs from one insurer to the next can be significant. As with any insurance purchase, its advisable to consider all your options and choose the title insurance policy that best suits your needs.

Contact title insurance companies in your area, http://www.FreeTitleQuote.com
0 votes Thank Flag Link Sun Jul 13, 2008
The difference is maybe a couple hundred dollars between title companies for condos it really doesnt make that much of a difference- It also depends on the price point of your home. Best advise work with a good attorney who answers your questions and is available. much more important. Let me know if you need some recommendations I have some really good attornies that are agents of multiple title companies and can guide you in the right direction. http://www.kalerealty.com
Web Reference: http://www.kalerealty.com
0 votes Thank Flag Link Sun Jun 15, 2008
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