Title Insurance Shopping Tips
- Buyers should insure for the full purchase price of the property; the lender needs a policy only for the amount of the loan.
- Local practice (not the law) determines who pays the premiums, and sellers and buyers can negotiate the payments. Your title agent can advise you who normally pays the various premiums in your area.
- Make sure the policy's effective date matches the date the deed or mortgage was recorded.
- Verify that the policy describes all of the property and all of the interests you are acquiring in the transaction.
- Always ask your escrow or title officer about possible discounts for first time buyers and for other possible discounts with special circumstances.
- Insurers providing both owner's and lender's policies in the same transaction may offer concurrent or reduced rates, sometimes called simultaneous issues rates.
- Refinancing discounts and short-term financing rates may be available.
- Title companies also handle property closings and hold earnest money in a trust account until a purchase is complete.
- You may choose any title insurance company you want.
- You do not have to use the title insurance company your real estate agent or lender may select or recommend. The Lender has the right to veto the title insurance company choice but not the Agency. Some Agencies represent more than one title insurance company.