Title Insurance Group Answers GAO Concern

This is really important information for home buyers. I know it’s boring, but you should be aware. When the time is right, have a conversation with the Title Company Escrow Officer to discuss fees etc. The title insurance plus miscellaneous fees will cost a home buyer thousands of dollars. I’ve shopped prices and have a found a good title company to work with, but if you are not careful it could easily cost you a lot of extra cash. I’ve seen as much as a $500 difference between title co’s for the same property.

Daily Real Estate News  |  September 19, 2007
The American Land Title Association (ALTA) has unveiled the Web site homeclosing101.org to educate consumers about comparison-shopping for title insurance and the “Principles of Fair Conduct” to encourage members to be forthright with consumers about their policies, services, products, and prices. Consumers tend to use a lender, real estate agent, or attorney to obtain title insurance “and are not always aware that they have a choice,” according to ALTA President Gregory Kosin.

The consumer education campaign is in response to an April report from the Government Accountability Office that criticized title insurance marketing practices and called for greater oversight of the industry. ALTA wants the title insurance industry to do more to police itself and plans to ask Congress to amend the Real Estate Settlement Procedures Act (RESPA) so that title insurance companies can pursue injunctions against competitors that violate rules on referral fees.

Source: Inman News, Matt Carter (09/19/07)