FL MORTGAGE BROKER: Title Insurance, Costs & Fees

[Account Closed]

Many Investors are somewhat in the dark and have questions about Title Insurance, Costs, Fees and Charges.

Recv an email: Why is it that some Title Agents can handle the Title work and closing for so much less than others?

This is a continuation of a discussion from this topic, under a different discussion where I was responding to @tom gimer  on:

https://www.biggerpockets.com/forums/552/topics/560681-fl-mortgage-broker-dont-be-foolish-use-a-buyers-agent

But so the Investors on BP can reference this discussion in the future and it's not wasted under a different topic, I started a new Topic Discussion on Title Insurance Costs and fees. 

You have the floor @tom gimer to respond to my questions and request

[Tom Gimer]

We cover 7 states so I have to speak in general terms because some fees are permitted in some jurisdictions and some are not.  But title fees generally fall into 3 categories:

Settlement-related fees ... these fees are not just for the closing. They are for all the processing work that gets the deal to the table. Coordinating between parties/agents/lenders, researching and adjusting taxes, water, pre-paid and unpaid items, scheduling, getting payoffs, dealing with third party payees, preparing CDs/HUDs, etc. Then of course the "fun" -- the actual closing.

Search/exam fees... these fees are for the title search (often through a third party) as well as the attorney exam of searches and surveys to determine all the steps necessary to get to the table as well as in many cases resolving defects.

Doc prep fees ... these fees would be for preparing the deed and any other instruments required. Subordination, release, corrective deed, opinion letter, etc.

Anybody who is significantly undercutting another title company on fees is short-cutting every single one of these important functions and/or foregoing hard-earned revenue in order to try to get your business in the short term. It's an unsustainable model... just like your Donner Party Buyer Rebates!