Using Title Companies??

Question

How much does using a title company cost when Buying or Selling Real Estate? How do you know if you're using a good one or not and does it really matter? What is everything I need to know about title companies? Please just looking for some insight. Thank you!

Darin Mellinger · Answer

In Florida, the premium for a new owner's title insurance policy is based on the the sales price and is set by the Department of Insurance. The premium is calculated as $5.75 per thousand up to $100,000 and $5.00 per thousand thereafter up to $1,000,000. (A lender's title insurance policy may also be required by a lender in a purchase and sale transaction. However, if a lender's title insurance policy is purchased simultaneously with an owner's policy, then a "simultaneous issue" can make the charge as low as $25.00).

The main variety in title company charges is in the "settlement" or "closing" fee, which is what I think other posters are referencing. As other posters have advised, this charge can range from $250.00 to $1,500.00 depending on the complexity of the transaction.

The main variety in title company charges is in the "settlement" or "closing" fee, which is what I think other posters are referencing.  As other posters have advised, this charge can range from $250.00 to $1,500.00 depending on the complexity of the transaction.

Nate Sahm · Answer

The bigger underwriters like Fidelity, Chicago, First American & Stewart are typically used and would provide the same protection from title company to title company the majority of the time. A good title company follows their underwriter's guidelines. There are several other, smaller underwriters used. That doesn't make them not preferable, just they can have differing opinions on what constitutes clear title. I have seen title companies delete requirements from their underwriter or add exceptions for items that should be covered or in lieu of truly clearing title (not requiring an heir to sign a deed, for example) that would leave a buyer in a tough situation even if they have the same underwriter as another title company. It's always important to review the title commitment and get a second opinion to verify nothing is being missed.

Nate Sahm · Answer

@Matt Sora, the settlement fee for a cash transaction should be $300 or less in the Tampa/St Pete area. That settlement fee can go up if a traditional or hard money lender is used, but it is based on the amount of paperwork the particular lender requires. @Darin Mellinger is correct with regard to the title insurance being set by the Department of Insurance. That figure will be the same no matter which title company you use.

In the Tampa/St Pete area, it is typical on a normal residential sale for the seller to pay the docs stamps (calculated at $0.70 per $100).

The title company you use absolutely matters. I have been working with investment grade residential properties in the Tampa market for 6 years and have seen some massive misses from title companies. It is imperative to have a title company that can handle the transaction you are looking to complete. The tricky part is you won't find a title company that says they aren't good, ha! Having title insurance does provide some protection, but, you still have to deal with the issue if a title company missed something. Just because you have car insurance doesn't mean you go out looking for a car accident.

If you are buying from a wholesaler be weary as many times they try to saddle the buyer with the doc stamps and all related closing costs. This can cut into your profits.

If you are looking for a more specific answer or need suggestions on good title companies, I'd be more than happy to point you in the right direction!

Good luck!

Carolyn Yates · Answer

I closed a property today with Upside Title.  Robyn Turner was great to work with.  I think she is in Tampa but I am located in Sarasota, so she sent a mobile notary.  Such a convenience!

Jared Prevost · Answer

If you're actively investing in Tampa, I would highly recommend working with Albatross Title.

We work with them exclusively on our wholesale deals and we also use them for our creative finance deals. Fantastic communication and real problem solvers.

If you reach out, tell them Nick's team at 27 Properties sent you their way :)

Peter Walther · Answer

The issue of HOA lien super priority has been the subject of considerable litigation in Nevada for several years now.  If you're interested, this link leads to a 2021 article on the controversy.  HOAs vs. Mortgage Lenders  – DSNews

Peter Walther · Answer

I suspect the majority of people are unaware most title agents in Florida get their title evidence/commitment from the underwriter whose policy is being issued so if there is something missed it's the underwriter's error.  Therefore, any agent that writes for the same underwriter has the same likelihood of having an error.

Robert Olinick · Answer

Title Guaranty of South Florida is the best. Happy to make a personal introduction if you'd like.

Bob Stevens · Answer

There all the same, costs vary in each city, and state. Why are you asking? Find a deal, the buyer's team will take care of the rest,

Good luck

Adam Bartomeo · Answer

It really depends on the title company, the locality, and your relationship with them. I normally pay zero $ on the buy side (I pay a total of $30 for recording fees). On the sell side I pay about $250. There are other fees associated with closing but they are all negotiable with the buyer or seller...

Using Title Companies??

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