Submitted by Anonymous on Tue, 04/06/2010 - 12:08
Posted in
It was my understanding that for buyers title insurance, the buyer pays the premium fee, e.g. .375%/thousand and the insurance company then pays the closing attorney a large chuck of that to do the title exam.
Is this correct?
Last week I contacted my attorney that I've used for other matters in the past about a cash home purchase I'm making, an he said the I'll need to pay the .375% title insurance premium plus an additional fee for a title exam (which may be done by a third-party company). Is this standard, in this scenario is the attorney getting the same money from the title-insurer but not doing any work?
Read Similar Questions
- Cost of title insurance in MA
- Do I need Title Insurance for real estate purchase
- Normal deed type for home sale?
- Seller of Property refuses to meet closing dates
- Title Search Gone Awry...
- Buyer's Title Insurance coverage for encroachment?
- Title V (Title 5) for bank-owned or foreclosed property?
- Title insurance and encroachments or adverse possession in MA
- Foreclosure Title
- Lawyer services for home purchase?
Recent Posts about Massachusetts Laws
| Forum | Last post |
|---|---|
|
I have a lease until June 2012, but I am very unhappy with my living situation, I pay half of the rent. I am a....
I cannot answer this question based upon your statement. Who are they....
|
2/8/2012 11:00 by Alexm2012 |
|
Is it legal for Massachusetts employer to send a SALARIED employee home for the day, without pay, for a dress ....
Federal and Massachusetts courts have upheld employee dress codes as l....
|
2/8/2012 09:09 by Munsterwoman |
|
Hi, I'm the grandmother of 4 beautiful grandchildren. The oldest has hit a rough spot with defiance (puberty ....
I'm very sorry about your situation and the ordeal your family is goin....
|
2/7/2012 23:02 by gramy |
|
Hello. I'm in the middle of an appeal for SSDI and my attorney asked me to get a residual functional capacity....
First, I guess it's not a good sign that you do not trust your current....
|
2/7/2012 08:18 by Adam13 |
|
Hi everybody.
I am trying to make an offer on a house, which is an estate sale. As I understand, the execut....
|
2/6/2012 13:50 by ilya980 |
|
I've been helping a friend pay for a lawyer to go to probate court.
Her ex-Boyfriend, whom she is taking to c....
|
2/6/2012 12:21 by rbiddle |
|
If I witness a person getting beat up at a party and just run away without calling the cops or helping the guy....
I don't think so. In terms of civil liability (as opposed to cri....
|
2/3/2012 07:17 by Coller |
|
My father passed away in September. The probate is over and settled, no contests to the will. My mother is the....
Your dad died in September and the probate is already settled – ....
|
2/2/2012 18:50 by JGraul |
|
Hi. My cousin is charged with possession with intent to distribute drugs in a Massachusetts court. He is not a....
Unfortunately for your cousin, if an immigrant is convicted of certain....
|
2/2/2012 08:07 by Sister6 |
|
Just curious if you have any thoughts or have read any information regarding the success rate of divorce media....
Yes, I've also seen the 90% estimate on various websites, with some me....
|
1/24/2012 11:47 by RRM |
|
Several of my colleagues will dictate consultation notes in which they state they don't have the complete hist....
The question probably boils down to whether or not such practice is wi....
|
10/2/2011 18:37 by Anonymous |
Title Exam vs. Title Insurance
A Title exam is performed to determine that the chain of custody on a property is legal and that the seller is, in fact, the rightful owner. This can be performed by the closing attorney,or by a third party title examiner. The latter is very common, since title searches can take up a great deal of time, and it is not worth it to pay an attorney his/her hourly rate to do a search. The fee for the Title Exam, whether done by the attorney or a third party, covers the time spent researching the title documents and costs such as copies made at the registry of deeds.
Title insurance is to cover any defects in title that are essentially undiscoverable in the title exam. The two title exam companies with which my firm works determines your policy premium, based on the amount of the loan (using the lender's policy as an example). This premium is placed on the HUD (and is also broken down into the amount of the premium that the Title Ins. CO. gets, and the amount that the attorney gets). The premium pays for the policy coverage and for the policy preparation work done by the attorney. Without getting into the nitty-gritty details, this includes reviewing the results of the title exam (not performing it) to ensure that title is insurable, and drafting the required documents for the title insurance co. so that a policy may be issued (this may also include documentation to correct any detected title issues).
So the short answer is yes, this is typical - and no, the attorney is not getting paid twice for the same work. A typical purchase title exam will cost between $175 - $200. Re-finance exams, which do not need to go as far back into the records as purchases can cost between $75-$100, on average.