who pays for the title insurance on a cash purchase in denver colorado? is there a calculator that shows how much it should be based on price?

Asked by Ldv72247, Cherry Hills Village, CO Sat Aug 21, 2010

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Leonajulli, Home Buyer, Fort Worth, TX
Thu Jun 11, 2015
It does not hurt to shop for you own title insurance but there are a number of things you should consider. In Colorado it is usually the seller who pays for title insurance so they are usually the decision maker of which company to use. The buyer is the beneficiary, so they may want a say in it. Title insurance is insurance for future claims and many title insurers have gone out of business in the last few years, so the buyer may not want to take a chance on a smaller company. Not all policies are equal, find out what is covered and what are the exceptions. Not all closings are equal, it is scary to have a closers who seems to be winging it. I have seen where the closers had not filed the proper paperwork and it was not discovered until the house is put back on the market. You may not want to rely on your Realtors recommendation, but at least carefully consider it, they use title companies all the time and have valuablle experience.

Reference Limk: http://titlecompanies.net/
4 votes
Nicci Hyatt, Agent, Denver, CO
Sat Aug 21, 2010
From a different perspective (I used to work in a different state that was Buyer-driven), why not take this into consideration in your negotiation? There may be some big advantages to you, the Buyer, for YOU paying your own title insurance! Consider: 1) you may persuade the seller to deduct that from your price, depending on your purchase price level, that amount could impact how your purchase price is seen in the eyes of the tax assessor! 2) you can control who the title company is; it is true that, no matter what state, the buyer "has the right to dictate the title company" but because CO is a seller-pays state, traditionally then the seller gets to choose the title company - there is something to be said in this day & age for knowing you are being underwritten by certain title companies and not others!

Also, it should be noted that unlike in some other states, the free market dictates title insurance rates here in CO, there are not set rates like in some other states. So you can shop around for 1) the best price 2) the best service and 3) (probably most importantly and perhaps why YOU may want to direct this item and pay for your own insurance) the most stable underwriter of your policy.

Please consult with your experienced and creative Broker Team.
3 votes
Christine Ba…, Agent, Denver, CO
Sat Aug 21, 2010
RE: Colorado, in close to 100% of the transactions the Seller is responsible for the cost of title insurance, and this is certainly the case in a cash transaction.

What is often more negotiable is the "Owner's Extended Coverage" portion of title insurance. This coverage is optional and I HIGHLY recommend this for every Buyer. As a matter of fact, if the Seller will not provide this for my Buyer's, I will not let them buy without it and I pay for it. I would never purchase a home without it, so how could I let any of my Buyer's?

This extended coverage option is found in the form of a standard, pre-existing check box in the uniform Colorado Contract. The box can be checked for either the Seller or Buyer to pay. It is fairly inexpensive considering the crucial protection it gives to the Buyer(s). The cost is generally between $50-$100 depending on the individual transaction. It covers things such as: The risks if someone has a lien on the Property; Restrictive rules or covenants regarding the use of your land, Someone who tries to force their rights to your Property from unknown agreements/leases, Someone who has a easement on your land and much more.

In regards to the cost of the general title insurance policy, you can find out easily by going to any title company's web site. There you will find a rate schedule. Title companies are very competitive and the costs do vary, however, most are extremely close in terms of final out of pocket cost.

I hope this was helpful.

Christine Battista
The Battista Team, Keller Williams
303.587.9270
denverInvest@gmail.com
http://www.TheBattistaTeam.com
http://www.facebook.com/DenverRealEstateand Investing

http://www.
3 votes
Nicci Hyatt, Agent, Denver, CO
Sat Aug 21, 2010
Sorry, one more thing: inquire about the rider called the "rising value protection rider" (or somesuch, each underwriter calls it something). It's all well & good to have your title insurance issued for the value you purchase, but what happens in the unlikely but VERY unfortunate circumstance when a legitimate claim comes up many years after you've purchased and your value has risen?! Many people don't realize their issued insurance only covers for certain increases, if any at all. Most underwriters will offer this rider for a negligible cost (free or $30 is what I have seen) but YOU MUST REQUEST IT!!!

It is unfortunate that most people disregard title insurance as an afterthought. It is a very important issue, I have seen it employed to the tune of $200,000 in one instance. You are wise to be researching it!

Again, please consult with your Buyer Broker and talk this out with your title officer. Best, Nicci Hyatt
Web Reference:  http://www.niccihyatt.com
1 vote
Michel Bross…, Agent, Denver, CO
Sat Aug 21, 2010
The truth is that section 7.1 of the contract says

"Seller shall cause to be furnished to Buyer, at Sellers expense, a current commitment for owners title insurance policy (Title Commitment) in an amount equal to the Purchase Price"

So unless the buyer writes into section 26 Additional Provisions that the buyer is going to pay the seller always pays for the basic policy.

What is negotiable is the Owners Extended Coverage (OEC). It costs all of $50 so if the seller won't pay it is not a huge expense for the buyer.

Here's the full language of section 7.1 on title:

7.1. Evidence of Title. On or before Title Deadline (2.3), Seller shall cause to be furnished
to Buyer, at Sellers expense, a current commitment for owners title insurance policy (Title Commitment) in an amount equal to the Purchase Price, or if this box is checked, An Abstract of title certified to a current
date. If title insurance is furnished, Seller shall also deliver to Buyer copies of any abstracts of title covering all or any portion of the Property (Abstract) in Seller's possession. At Sellers expense, Seller shall cause the title insurance policy to be issued and delivered to Buyer as soon as practicable at or after Closing. The title
insurance commitment Shal __ Shall Not ___ commit to delete or insure over the standard
exceptions which relate to: (1) parties in possession, (2) unrecorded easements, (3) survey matters, (4) any
unrecorded mechanics liens, (5) gap period (effective date of commitment to date deed is recorded), and
(6) unpaid taxes, assessments and unredeemed tax sales prior to the year of Closing.
Any additional premium expense to obtain this additional coverage shall be by Buyer__ Seller ___ .
Note: The title insurance company may not agree to delete or insure over any or all of the standard exceptions. Buyer shall have the right to review the Title Commitment. If the Title Commitment or its provisions are not satisfactory to Buyer, Buyer may exercise Buyer’s rights pursuant to 8.1.

Good Luck w/ your home purchase.

Michel Brossmer
Kentwood Company at Cherry Creek
Michel@DenverRealEstate.com
http://www.LivingInMetroDenver.com
1 vote
Bev West, Agent, Greeley, CO
Mon Sep 29, 2014
That is a negotiating item in the contract. Paying cash doesn't have any play as to who would pay for it. Normally in Colorado, the seller pays for it.
0 votes
Marilyn MacA…, Agent, Littleton, CO
Thu Sep 25, 2014
It depends on the contract, either party can pay.

Buying or selling a home?
MSM Property Brokers
720-276-2677
0 votes
Marilyn MacA…, Agent, Littleton, CO
Thu Sep 25, 2014
It depends on the contract. Either party can pay.
0 votes
Kathleen Fos…, Agent, Denver, CO
Wed Jun 25, 2014
Every item in the Colorado Contract to Buy and Sell is negotiable so either buyer or seller may pay for the title insurance. As per Paragraph 8 in the 2014 contract, the party that agrees to purchase the commitment has the right to select the Title Company that will issue the commitment.

As far as pricing is concerned, most companies are competitive and each has a website that will allow you to calculate the cost.

Hope that this was of help to you!

Kathleen Foster, G.R.I.
Member of the Sisters Who Sell Team
5280 Top Realtor
Five Star Professional Award Winner
Brokers Guild Cherry Creek, Denver Colorado
0 votes
Shelley Brya…, Agent, Englewood, CO
Mon Jun 18, 2012
the seller typically pays and the title companies ahve a schedule of what it should be based on price.
0 votes
Shelley Brya…, Agent, Englewood, CO
Sat Jun 16, 2012
Although it is negotiable, typically on a resale home the seller pays for the title insurance on a home sale.
0 votes
George Lewman, Agent, Englewood, CO
Thu Oct 7, 2010
Ldv72247,

It is negotiable in the Colorado Contract to buy and sell. Nikki Hyatt has a good explanation below.
Many title insurance companies have this info on their websites. There are three components to title insurance in CO. The first is that the property is insured from the sellers ownership back to the properties origin. This is based upon the price of the property, but can be reduced if the property was sold in the last few years. The second is a mortgagee policy (the lender) who will require the buyer to have at closing (who pays for it is negotiable). The third is gap insurance which is nominal, and I recommend my buyers request (who pays for it is negotiable).

You the buyer gets to choose the title insurance company, but usually it is by mutual agreement. Use a title company that is solvent as hundreds have gone out of business and if they become insolvent, you can lose or have your earnest money tied up for a long period of time. Land Title is big here, and there are many good ones to choose from.

I use Stewart Title Cherry Creek for the majority of transactions:

Here is a link to their rate manual. Make sure you get the zone right. 80222 is in Zone A.

http://www.stewartdenver.com/rates


Contact me if you have any specific questions and I would be happy to help you.
Web Reference:  http://www.georgelewman.com
0 votes
Kari Wisenba…, Agent, Denver, CO
Mon Sep 20, 2010
In Colorado, you can draft the contract either way... so it becomes up to the Buyer whether they want to pay for this or not. The title insurance premiums are based on the price, and are made public (they are very competitive rates) so you should be able to find a chart online on any of the big title company websites. Good luck!
0 votes
Ethan Besser, Agent, Englewood, CO
Sat Aug 21, 2010
Hi Ldv72247,

I just closed a deal and the buyer offered to pay the title insurance. it is a negotiable point though. To find out how much titile insurance will cost contact the Title Company.

If you do not have one, I recommend:

Cyndi Schobinger
Heritage Title
303-220-5300

She can answer all of your questions and is the best in her field. Tell her that I referred you.

Ethan Besser
Broker Associate
Keller Williams - DTC
Cell: 303.856.8980
Fax: 303.539.4809
besser@kw.com


The Besser Choice in Real Estate!
0 votes
Robert McGui…, Agent, Denver, CO
Sat Aug 21, 2010
Lsv72247,

Your name looks like a Star Trek character. (: Great answer by Christine Battista on the Title Insurance and what we call Extended Coverage and 'Gap Insurance'. To get an idea what the Seller should pay take a look at the chart in the link below for Chicago Title. You can also reach my rep there who is Beau Lapoint - 303-388-5758.

http://www.colorado.ctic.com/titlerates.aspx

I hope this helps and congratulations on being a cash buyer in this market. After making your best cash deal, most title companies can close your transaction in 10 days or less.

Robert McGuire ASR
Broker/Consultant
Your Castle Real Estate
http://www.rmcguire.yourcastle.org
http://www.theRobertMcGuire.com (Blog
Direct: 303-669-1246
0 votes
Chuck Strau…, Agent, Denver, CO
Sat Aug 21, 2010
Pretty much answered, but most of the title companies have, publish and distribute rate cards, making it easy to calculate the rate.
Good luck.

Chuck Strauss
Keller Williams DTC
720-318-7598
CStrauss@kw.com
0 votes
Mary Weaver…, , Glenwood Springs, CO
Sat Aug 21, 2010
Because you said this is a cash deal without a lender involved, The Title Commitment /Policy is normally the sellers cost. Yes, it is based on the selling price. Your title company will have these amounts for you and I would give them a call; there may be a small variance in this amount from one company to the other. This will show up on the Seller's settlement sheet, not yours so this should not be a concern for you seeing this is a cash deal and not mortgage policy issued.

Of course you should have a Title Commitment and don't let anyone talk you out of that regardless if this is a cash deal or not. The entire reason for a commitment is to assure you as a buyer there are no liens left on the property once you take title and that the title is clear and the owners have paid any special assessments that may be recorded and any easements. A commitment means nothing to do whether you have a loan or not. Be sure to have a good attorney review your commitment and reply to it within your contract dates allowed. I'm not sure why any broker would advise any buyer not to have an owner order a commitment for you to review, but it is up to you to pay to have an attorney review it for you. A bank will hire an attorney to review a Title Commitment, but that is for their own protection, so you need to do this because you do not have a bank involved. I've found many mistakes in commitments attorneys have missed too so be sure to read it and understand it.
0 votes
Charles Parr…, Agent, Denver, CO
Sat Aug 21, 2010
The payment of the Owner's Title policy is negotiable, but most of the time it is paid by the Seller. There is not a calculator to price the policy, but you can contact a title company and they can give you a quote.

I use Equity Title of Cherry Creek. My firm, RE/MAX of Cherry Creek is a part owner in Equity Title of Cherry Creek. Please feel free to contact the branch manager:

Mark Foley
(303) 375-4961
mfoley@equitycol.com

You can also contact me direct, and I can help you price the policy.

Sincerely,

Chip Parrish
Broker / Co-Owner
RE/MAX of Cherry Creek
303.331.4534
chip@ul5280.com
Web Reference:  http://urbanlife5280.com
0 votes
Linda Aanest…, Agent, Woodland Park, CO
Sat Aug 21, 2010
Dear Home Buyer,

Typically, the seller pays for title insurance unless it is negotiated differently in the contract. The costs can vary from company to company, so the amount would come from the specific company being used in the transaction. They usually have a chart with the amount based on sales price of the property.

Linda Aanestad
Epic Realty, Inc.
719-686-1600
0 votes
Pete Cook, Agent, Denver, CO
Sat Aug 21, 2010
Independent of how the transaction is funded, the traditional split is that the seller will pay title insurance and the lender / buyer policy will be the same but at a great discount. Usually less than half of the price of the seller's policy.

All the major title companies will have insurance rates on their websites. As a cash buyer, you are not required to get title insurance, but your policy is very affordable and recommended.

There is a link below to Canyon Title if you want to see rates.

Call or email if I can provide any other information.
0 votes
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