Home Selling in 77450>Question Details

Marie, Home Seller in Katy, TX

i am the seller,what are the fees the title company charges to close a home? who buys the title policy?

Asked by Marie, Katy, TX Wed Feb 13, 2008

sometimes the title company adds a lot of fluff, how can i prevent not being charged these extra fees?

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Nikki Smith’s answer
Around the Washington, D.C. Metro Area the seller's main responsibility in regards to the title company is providing loan payoff information, condo or HOA contact information, and proof of authority to sign if the seller is a trust, an estate, a partnership, an LLC or a Corporation. The buyer pays for both the lender's and owner's title insurance policies unless the two parties agree otherwise. Lately, we've seen the seller paying at least part of the closing costs.

Bankrate.com just released their annual closing costs survey, which you can read about here:

Disclaimer: I'm the marketing director for Federal Title & Escrow Company in Washington, D.C.
0 votes Thank Flag Link Thu Aug 19, 2010
itle fees are recorded with the State Government they cannot change the cost of the title company. Escrow fees are the fees that the title company charges in conjunction with signing of loan doc's preparing and sending them back to lender etc. These fees are based upon the loan amount.

Other fees that title companies charge are reconvayance fee for changing of the deed ownership usually around $150 - Recording fee which is set by the county government per page fee. Then there are the fees for wire, printing of loan doc's, and some title companies have junk fees.

With the new GFE if a lender quotes title fees and they are off by more than 10% higher then the lender has to pay the difference - so lenders do add more to title fees to cover the requirements by Federal Law. The new GFE also on a purchase requires that the Owners Title Insurance be added to the buyers GFE because in some states the buyer has to pay it.

I would suggest that you call a couple of title companies and ask for their fees for your type of loan purchase or refinance - this will give you a better perspective of the fees.

Also, FYI you can pick your own title company to do the title work you do not have to use the one the lender or the seller wants to use. This is the law.

Reference Link: http://titlecompanies.net/
3 votes Thank Flag Link Thu Jun 11, 2015
In my experience title companies don't add a lot of fluff in Texas. Most are pretty competitive. The rates for title insurance are set by law. They are higher in Texas than other places and perhaps there should be some discount for refinancing that isn't there, but I think you'll typically see rates and fees fairly competitively across the companies. You could check with 2 or 3 or 4 for a schedule of fees they expect the seller to pay. Title insurance is a negotiable expense between buyer and seller. In my market area seller normally pays their portion of the title insurance to ensure or insure a good title to the buyer.
2 votes Thank Flag Link Wed Feb 13, 2008
Bruce Lynn, Real Estate Pro in Coppell, TX
Title Fees are run about 1% of the sales price for the property being insured, as a general reference. The title policy fee is regulated by The Texas Department of Insurance, and is a set percentage. The closing fee varies from company to company, but runs generally around the 200.00 mark. All of these fees are negotiable between the buyer s and sellers, but in my experience, the seller almost always pays and chooses the company. When I get a new listing, I always send it into my seller's chosen title company to gather all information for the property and to ensure we have clear title for a prospective buyer, making way for a seamless closing and experience for my clients.
1 vote Thank Flag Link Fri Jan 25, 2013
Hello Marie,
The title policy is generally an expense paid by the sellers and as it is regulated it will be the same
from one comapny to another.
If you are buying a NEW built home than the builder sometimes will not pay these and this is where
a Realtor of your choice comes to play to negotiate this item.
The title comapny charges are normally very minimal and will run very close to about $50-100
difeence from one agency to another.
Hope this help and am a phone call away for any additional questions you may have.
Have a great day.
0 votes Thank Flag Link Mon Dec 3, 2012
Lots of great advice from the agents---almost everyone FAILED to answer the question---What is the cost of title insurance. An answer would be $400 or $600 or $.50 per thousand on the selling price. That would be an answer somebody could really use. Instead of beating around the bush.
0 votes Thank Flag Link Thu Nov 29, 2012
Lighten up man... I am a new agent and I have enjoyed reading and learning something from ALL of the entries.....EVEN YOURS! Don't belittle anyone. We can ALL learn for the rest of our lives.
Flag Thu Jun 26, 2014
The title companies have their own fees they charge and most of them are set by law. They have nothing to do with the real estate agent. So there really is no reason to avoid the question. I love how the lay person thinks all realtors are shady and are rolling in the dough. Just the opposite, we work extremely hard for our clients, sometimes showing homes for months at a time to one buyer. That 6% commission we make, out of that 6% averages about 2.4% for the buyers agent and I still split that in half with my broker. You do the math. So that $150,000 house I sold after 6 months of searching with the buyer is basically poverty level living. Great to know how the mortgage lender perceives agents, way to stick together. Remind me to never send my buyers your way magictbird.
Flag Tue Oct 22, 2013
Thank you I found out it was about $1400 on $380K by getting credit for previous title. I think a lot of the answers were intentionally vague, a sales technique that only works on people who Realtors pervieve as nieve or inexperienced. Mortgage Banker Detroit
Flag Fri Jan 25, 2013
As you are in my area, I can speak for the Houston market,. Other parts of the country and state handle title differently. As stated by other professionals in our area, this is a negotiable item but is usually picked up by the seller. The exception to this is new construction where the builder will expect this to be a buyer expense unless they are offering an incentive to cover this expense (usually tied to the buyer working with their recommended lender, who is often owned wholly or partially by the builder itself). So in theory, a seller who sells his/her existing home and buys a new construction home could end up paying for the title policy on both. This is yet another reason that an expert Realtor can help wade through the technical issues and save their clients a lot of money by understanding title and other issues and how they affect the client's bottom line.
In all of my years in this business, I have had one buyer pay for it on a resale listing. This is because we had 5 offers in the first week on the market and this particular buyer had a company relocation package that paid for his closing costs and he was able to offer the best terms to our seller. Otherwise, my sellers have all paid this fee and we usually structure it in the asking price of the home, as we do all closing costs. In the end, it really is the buyer who pays for it in the sales price but that is another story. These title policy costs are regulated by the State of Texas and standard from company to company. Hope that helps.
0 votes Thank Flag Link Sat Mar 6, 2010
Christi Im buying a resale property with a investors company,??? do we have to pay for the Title policy or they have to provide it... also if the property has a deed on the title do we get our earnest back??? I will appreciated if you answer my Q"s...
Flag Sat Feb 6, 2016
0 votes Thank Flag Link Fri Mar 5, 2010
Normally in Texas the seller pays for the title policy, the buyer pays for the appraisal, the inspections, the survey..Now this is generally, and there are exceptions to every rule

but your question is like: who usually buys the ring for a marriage proposal?
Generally, the man but I guess it could vary

or who pays for the rehearsal dinner...answer: the groom

so my answer is "generally" that is how it's done..
0 votes Thank Flag Link Wed May 6, 2009
Either party can pay for the title policy. Depending on the contract you have signed (our TREC contracts split fees) everything in a real estate transaction is negotiable. It is best for you to have whoever is representing you...either your Realtor or Lawyer review the specific contract and let you know who is paying for what...you can lose quite a bit of money this way.
0 votes Thank Flag Link Wed May 6, 2009
the title company charges you a fee for escrow services...all the things that they have to do to ensure a smooth closing....the sellers typcially cover the title policy cost
0 votes Thank Flag Link Sun Mar 22, 2009
In the Katy area, the seller is usually asked to pay the title policy. It's just the way the business is generally done here. Sometimes, the builders selling new construction ask the buyer to pay for it, but in the resale market it is different. If you're selling your existing home, a good guideline is that it will be close to 1% of the sales price. Call me to connect you to a title company that will give you exact numbers. The closing costs are regulated.
0 votes Thank Flag Link Sun Feb 22, 2009
My first question is...do you have a Realtor? Here is some advice. The seller usually pays (not always but about 90% of the time). The seller usually picks the Title Company. (we always try to use United Title near LaCenterra Mall in Cinco Ranch...Nancy Fox is the Closer). The Title Policy will cost you just under 1% of the selling price...and it is a regulated amount. The Title Company will also charge you fees for the closing. You can call around to different companies and check the fees...usually they will all be within $100 of each other. A strong closer is very important!
0 votes Thank Flag Link Sat Feb 16, 2008
Insist on using a reputable title company in your area. Since you as the property owner are wanting to convey a CLEAR title to the prospective buyer, it is customary for the seller to pay for the title policy at closing. Therefore, the title company used should be your choice. Title companies are regulated to the charges that they can charge. Your can figure the title policy costing just a little over 1% of the sales price of your property. There are some additional charges such as filing fee, attorney prep fees and courier fee (these three things should not amount to more than $650 at ANY title company and most of the time they can be as low as $450.)
Have your agent do an estimated closing cost sheet for you which is a computerized form available to agents either on their MLS server OR through the title companies in the area. These estimations are usually within $150 - $200 of your actual cost. These cost usually vary this much because of the time of closing and the taxes or insurance that you would be responsible for would be different depending on the month and day you close. Remember that you are responsible for taxes and insurance up to and through the date of closing.
I hope this helped to some extent. I am in the North Texas area now. However I use to live and work in Sugar Land. IF you do not have an agent yet, contact Liz Baker, Broker there in Katy @ 21949-D Katy Frwy, Katy, TX, 77450. Her phone number is (713) 824-9044. Tell her that Kathy Fisher from ACTIVE RAIN referred you to her.
Good Luck and God Bless
0 votes Thank Flag Link Wed Feb 13, 2008
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