10.05.08
Is news article about Title Company savings misleading?
I read a news article today called home buyers can now purchase title insurance directly. It’s from the Pittsburgh Post gazette. You can read the article here.
I felt compelled to respond and here’s my response:
Mr Grant,
I am a neutral, land title educator. I teach and write about title insurance. I read your article, and wish to comment. It is a very good thing you tell the consumer that s/he can “shop” title companies for savings. That is true - significant money CAN be saved. Under Federal Law, however, the Real Estate Settlement Procedures Act (RESPA) this is not new, a homeowner has always legally been able to choose their own title company. However, most people have been reluctant to do so, as they do not understand the title product, and prefer to “just have the real estate agent” (or attorney) handle that.
The article you post however, is misleading, in that much of the expense involved in using a title company has to do not with the premium charged, but rather with the other fees charged. For example it is common for a title company to charge Closing Fees, Abstracting fees, document preparation fees, Administrative fees, recording fees, courier fees, tax,assessment and/or name search fees, and much, much more.
Your statement saying “Mr. Dwyer said Entitle Direct has filed, as required, premium rates with Pennsylvania’s state insurance department that are 35 percent lower than most other title insurance companies in the state.” leads one to believe that Entitle Direct will be less expensive than its ompetitors. In reality, his statement may be true, or it may just be a marketing ploy to bring in business, as his other fees may more than compensate for the reduced premium. To be fair to the consumer, I think this needs to be mentioned. But I do appreciate your telling people they can shop for the best price, as in this market, more than ever, every dollar counts for the consumer,
What do you think?