Most people do not know what title insurance is at least until they actually purchase a house or refinance and existing home mortgage. Even then the majority does not even give it a second thought. This is because it is simply one piece of a large volume of documents that are signed at closing time. As a result they are unaware that in most cases they are being overcharged for title insurance. Many title companies charge junk fees and overcharge standard fees since they know the customer has no idea what fees are part of the title insurance policy and will probably not look any further into it. The fact is that consumers should be more aware of what title insurance. If consumers were more educated they would understand that there is the potential to save $100’s, even $1000’s on title insurance and closing costs.

One of the biggest issues in the title industry today is the use of kick backs to real estate brokers and mortgage brokers by title companies. Although they are illegal some title companies have found ways around the law and till utilize these practices. Kick backs are essentially rewards to the brokers for sending the business to a title company. The title company charges extra fees to increase the title insurance premium and gives a kick back to whoever brought them the business. Title insurance costs customers billions annually and if even a small percentage of that goes to junk fees for kick backs it is still a significant amount of money. This does not have to be the case.

When it comes to buying title insurance most consumers will use the company recommended by their mortgage or real estate broker. Most are also unaware that they DO NOT have to use the person recommended. Consumers are free to shop around for their title insurance to get the best price possible. When getting a title insurance quote it is imperative to ask for a detailed list of the fees and charges that make up the total premium. If a company will not provide a detailed breakdown they are probably trying to hide something. Shop around and compare the quotes to determine the best price. Let your broker know so the closing can be set up and the transaction completed.

Many consumers have no problem haggling over the price of the house or their interest rate on the mortgage loan but are unaware that they can also save thousands in the closing process by simply shopping around for better prices on title insurance. What’s the point in getting the price of the house lower if you are going to turn around and pay that same amount up front for title insurance? Don’t make that mistake. Educate yourself and understand all aspects of the closing process and costs associated with title insurance to avoid being overcharged. It could potentially save you thousands.