Charges for Title Services
This is an important, but little known, area of home owning. Title services ensure that you truly do become the owner of the property you are buying and have written proof of that ownership. There are several fees, as you might have guessed, in connection with the process of gaining title, as follows:
Title search, title examination, and title insurance binder. The latter is sometimes called a “commitment to insure.” These are charges made for title search and guarantee services. Who pays for what — whether it's you or the seller — may be dictated by local custom or by an agreement negotiated before the signing of the contract.
Title insurance. This policy protects against any defects in the title that may be discovered after the transfer of ownership has been conveyed. For example, a contractor who has not been paid for his work could place a lien on the house.
A lender's title insurance policy, which protects only that institution, might be required. A policy for a new homeowner is an option you might want to pursue. The premium for each is a one-time charge. Sellers sometimes pay for an owner's policy as part of the sellers' assurance of clear title. Buyers usually must pay the fee for the lender's title policy, but often only the amount of the mortgage, rather than the purchase price of the house, need be insured. All of this is negotiable.
