There are many common misconceptions about title companies. Today, we’ll cover one of them and outline the real story.
The Fallacy
The insurance marketplace is competitive, so it stands to reason that title insurance rates vary widely from company to company. It also makes sense to shop for the lowest title insurance premium, just as you would for other types of insurance.
The Reality
In New York, as in many other states, title insurance rates are filed and stated (regulated). This means that all title providers that are part of the American Land Title Association (ALTA), the national trade association for title insurance, must charge the same insurance premiums. Some small fees that aren’t regulated will vary by company; it’s worth talking to an insurer about whether those fees are negotiable.
Multiple upstarts that are not part of ALTA have filed their own lower rates for title premiums. Be aware that some have gone out of business. As a result, many lenders do not accept their coverage.
Choosing A Title Company
Make sure that the title company you choose is approved by your lender. Lenders have stringent standards because title insurance protects their interest in the property, as well as yours. Check how long a title company has been in business. An insurance policy, as some owners have found out the hard way, is only as good as the company that issues it.
If you have any questions about any aspect of title insurance, including pricing, or if you would like to discuss an upcoming or potential transaction, please contact us.
