Title Related Closing Costs
Listed below are the categories of customary title insurance related charges and a brief explanation of what each fee is for. Under current RESPA guidelines some of these fees are shown in one line item on the Closing Statement.
Settlement/Closing Fee This fee is a regulatory required charge paid to the settlement agent/title company for its preparation of all of the closing documents, preparing the HUD closing statement and for conducting the closing. These services are customarily referred to as the Core Settlement Services. Except in a refinance this fee is typically charged to both the Buyer and Seller though it may vary.
Abstract or Title Search This fee is the charge for the title company’s search of the public records and for the examination of the search results and documents. Following the search and examination a title insurance commitment is prepared which sets forth, among other things, what documents must be obtained, executed, and recorded to pass and insure clear title to the property. The payment of this fee is determined by the terms of the contract except in refinance situations.
Document Preparation This fee is sometimes charged by Platt & Surber, P.A. for the cost of attorneys preparing all of the numerous closing documents to be signed by the parties.
Attorney Fees In some transactions either the Buyer or Seller engages the services of an attorney to represent them for the closing. However, generally speaking, when the title company that is doing the closing is owned by an attorney there usually are no attorney fees charged to the parties other than the standard title related closing costs.
Title Insurance There are two types of title insurance. One is the Owners Policy and if the Buyer is obtaining a mortgage there is a second type of title policy called the Lenders or Mortgagee Policy. The Owners Policy is an actual insurance policy that protects the owner (Buyer) for any claims made against their title up to the value of the purchase price of the home. The Lenders Policy protects the lender for any claims made up to the value of the mortgage they are providing to the Buyer. The Buyer is always responsible for the cost of the Lenders Mortgagee Policy. The real estate contract will set forth which party pays for the Owners Policy.
Courier Fees The cost to send documents via overnight or same day courier when necessary and applicable.
Electronic File Conversion and Scanning Fee The cost to scan and save your file onto a CD for confidential safe keeping by the closing agent for the mandated seven year period following the closing.