How are Escrow Fees and Title Insurance Fees Calculated in Southern California?

how is title insurance calculated

Maureen Megowan Real Estate Agent Palos Verdes Estates, CA (310) 541-6416 Contact Profile

Escrow fees: Charged to the buyer and seller for escrow services by the escrow company. The escrow company may also charge xerox charges and other out of pocket costs which they may incur, such as courier services, etc. Base escrow fees generally run from $150 - $300 plus $1.50 - $3.00 per $1,000 of total purchase price. A typical fee structure for either the seller or buyer would be:

$400,001-$599,999

$2.75 per thousand and $250 base fee

$600,000-$699,999

$2.75 per thousand and $200 base fee

$700,000 and up

$2.75 per thousand and $150 base fee

These escrow fees may be negotiated downward and are often a few hundred dollars less than the calculation above

Title Insurance Costs:

Title Insurance for Lender: A separate ALTA title insurance policy is normally required by the lender insuring their loan amount, and is paid by the buyer at closing. The price of this title policy varies with the loan amount. For a $400,000 loan, the title policy would cost approx. $530 and a $1,000,000 lenders policy would be approx. $950 This equates to a base title policy fee of approx. $300 plus .0575%-.065% of the loan. For properties over $1 million, you would add an additional .06% of the loan

over $1,000,000. You can visit the website http://www.clta.titlewizard.com/ to obtain a competitive cost estimate of title policy fees.

CLTA Homeowners Title Policy: The Seller will normally pay to provide the buyer with a title insurance policy insuring the buyer's equity interest in the home. This title policy will also provide information on any existing easements on the property. These are rights retained by others to enter onto your property, and usually relate to utility companies which may have sewer, phone or electrical lines running under the property. The price of this title policy varies with the purchase price. For a $400,000 home, the title policy would cost approx. $1,480 and a $1,000,000 home policy would be approx. $2,800. This equates to a base title policy fee of approx. $600 plus .22 of 1% of the purchase price. For properties over $1 million, you would add approx. an additional .17% of the purchase price over $1,000,000 These costs would be approx. 16-20% less if a policy had been issued to the seller within 5 years. You can visit the website http://www.clta.titlewizard.com to obtain a competitive cost estimate of title policy fees.

By Maureen Megowan Real Estate Agent with Remax Estate Properties - BRE #01368971

Posted on December 23, 2010 05:14 PM

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Category: Insurance

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