Title insurance clarification (New York, York: mortgage, how much, lawyers)
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This question came up in another thread but since it's OT to that, IMO it deserves its own.
In the other thread I asked about the difference between a 'Mortgage' and a 'Fee/Owner' title policy and a respondent said that we would need a separate title policy for each (one for the bank's 75K mortgage and another for our full purchase price to cover ourselves as owner). In response to my question of why we can't just get a single purchase-price policy that also names the bank as additional insured for 75K, I was told that it can't be done.
However, at the site linked in another response New York State Title Insurance Rate Calculator (http://www.smprtitle.com/title_insurance_rate_calculator.aspx - broken link) it clearly does give the option for a quote for "Simultaneous Issue and Market Value Rider Endorsement" policy type. So I tried quotes all 3 ways:
For a 75K 'Mortgage' policy, the NYS premium shown is $541
For a 575K (assume this as purchase price) Owner policy, the premium is $2394. That'd be $2935 for both policies, and without a Market Value Rider which was recommended by the respondent.
However, selecting the Simultaneous Issue option lets me input a 75K mortgage and a 575K purchase price and get the Rider; the total premium doing it that way is shown as $2556. The breakdown is $162 for the 75K mortgage portion, $2394 for the owner portion, and an extra $239 for the Market Value Rider.
So it seems from this website that you CAN get a combined policy (one policy covering both the bank and the owner) and that it's cheaper than buying them separately as the poster suggested.
But I also see that this website says the NY Mandated rates are effective as of 2001. Have they gone up since? This website hasn't changed its copyright since 2003.... So maybe it's out of date or inaccurate.
Has anyone bought a house in Suffolk recently and gotten a single title policy that covers both their bank (mortgage) and themselves? If so, which title company was it? Thanks!
Not really. We were 'half in contract' on a house two months ago (we had signed the contract but the (*&$%$#!! sellers backed out at the last minute!) and had lined up a title company but since it never got to the point of ordering the search/policy we never did find out whether they were going to issue a single combined policy or two separate ones. I guess if/when we find another house we'll find out then!
I am in the process of buying my first home in NY after 4 purchases in the south. I am blown away by the ridiculous costs associated with buying a home here!!
I was not given a choice by my "lawyer" as to which company to use and a whopping $3000+ Title fee is showing up on my good faith. I'm pissed. Like you, I don't like people taking liberties with my hard earned money.
Just wondering how your situation ended up and what company you used? Were you able to reduce your costs or your frustration? If so, i'd love to know how. I think the lawyers and agents intentionally complicate things here so people just get tired and go along with whatever they recommend. I'm about to go postal on everyone involved if I don't get some definitive answers on how much this whole process is going to set me back and what the point is to all of the redundant junk fees!!?
Thanks!
I am in the process of buying my first home in NY after 4 purchases in the south. I am blown away by the ridiculous costs associated with buying a home here!!
I was not given a choice by my "lawyer" as to which company to use and a whopping $3000+ Title fee is showing up on my good faith. I'm pissed. Like you, I don't like people taking liberties with my hard earned money.
Just wondering how your situation ended up and what company you used? Were you able to reduce your costs or your frustration? If so, i'd love to know how. I think the lawyers and agents intentionally complicate things here so people just get tired and go along with whatever they recommend. I'm about to go postal on everyone involved if I don't get some definitive answers on how much this whole process is going to set me back and what the point is to all of the redundant junk fees!!?
Thanks!
Don't forget to include the $150 or so "customary tip" to the title closerto really get the blood boiling!!!!
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Title costs
