Why Are You Paying Title Fees?

Posted by Haleigh Haffner Mulhern | Apr 24, 2023 | 0 Comments

Title fees are a set of fees charged by title companies or attorneys for their services in verifying the ownership of a property and providing title insurance to protect buyers and lenders from any unforeseen title defects. Title insurance protects the buyer and/or lender from any financial loss that may arise due to issues related to the property title. In general, there are two types of title insurance policies – the lender's policy and the owner's policy.

The lender's policy is required by most mortgage lenders and protects the lender's investment in the property. It is typically paid for by the buyer or borrower, and the cost is based on the amount of the mortgage loan.

The owner's policy, on the other hand, protects the property owner's investment in the property. It is usually paid for by the seller and is based on the sale price of the property. The cost of the owner's policy is typically a one-time fee, paid at the closing of the sale.

The owner's policy provides coverage for a range of title issues, including forgery, fraud, undisclosed heirs, liens, encumbrances, and other defects that may affect the owner's ownership of the property. If any of these issues arise after the sale of the property, the owner's policy will cover the cost of any legal fees and expenses associated with resolving the issue.

When selling a property, it's important to consider the cost of the owner's policy as part of the closing costs. While the cost of the policy can vary depending on the location and sale price of the property, it's a small price to pay for the peace of mind it provides in protecting the seller's investment in the property.

In summary, a title owner's policy is a type of title insurance that protects the property owner's investment in the property. It is typically paid for by the seller and provides coverage for a range of title issues that may arise after the sale of the property. By including the cost of the owner's policy in the closing costs, sellers can ensure that their investment in the property is protected and avoid any potential legal disputes or financial losses related to title issues. 

About the Author

Haleigh Haffner Mulhern

Haleigh Haffner is a graduate of Clemson University with a Bachelor's degree in Modern Languages. She graduated from Loyola University Chicago School of Law with a Juris Doctor and a certificate in Public Interest Law. Haleigh was sworn in to the Illinois Bar in January 2021. While at Loyola, Hal...


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