New York Title Insurance Costs – They CAN Be Mitigated!

Mitigation – Post-pandemic, and long after the term quarantine is nothing but a bad memory, mitigation will go back to its original meaning of ‘reducing the severity, seriousness, or painfulness of something’!

And at that point the mitigation of virus spread will hopefully be nothing but a bad and sad memory!

So if that’s the case, in ‘regular’ times what can one do with mitigation? Many things such as mitigating the pain of an injury BUT, you can also mitigate the amount of your closing costs when it comes to buying real estate in New York!

At the closing table for a residential real estate transaction in New York, title insurance is one expense that often is discovered by the buyer when their attorney tells them to write a check for some dollar amount that sounds high, made out to a title insurance provider that the buyer has never heard of.

And while title insurance is necessary for the mortgage lender and typically will be purchased by the new owner as well, the cost to the buyer can typically be reduced by as much as $500 – $1,000, if the title company being used is being fair.

The title insurance premium will be the same regardless of the title insurance provider being used BUT, the ancillary and ‘junk’ fees that appear on the Title Bill can and will vary from firm-to-firm.

At Hallmark Abstract Service we believe that we’re well compensated by our share of the premium, so we DO NOT gouge our clients when it comes to the other fees involved!

In New York State the purchasers of title insurance have the RIGHT to choose the company they will deal with, although often the real estate attorney will have firms that they deal with and choose one of them.

Our recommendation is this…Consumers tend to shop around for everything they are going to buy whether for quality, price or both. As well they should.

When it comes to the critical area of title insurance they should consider doing the same, and more, in terms of the questions being asked!

And, they should get a 2nd opinion through a title bill generated by another provider, when it comes to costs!

Four Categories To Consider Concerning Your Title Insurance Provider in New York!

1) Saving Money – While the title insurance premium will be the same regardless of the company being used, the title bill that includes ancillary and ‘junk’ fees will vary from firm to firm. This can result in closing costs being paid by the buyer that are $1,000 or more higher than at a firm like Hallmark Abstract Service!

2) The Underwriter – Make sure that the underwriter being used is well capitalized and one of the top companies in the industry. A firm like Fidelity, First American or Old Republic that you know will stand behind you no matter what!

3) Claims Experience – Regardless of the title company that you use, a title insurance policy will be issued at the closing. But that said, you want to make sure that the title company being used has experienced few, and hopefully zero, title claims.

4) Decision-making Chain of Command – If a decision has to be made how clear is the process for getting an answer? Are the owners hands-on or does a decision need to go through layers of company infrastructure?

5) Affiliated Arrangements – You should inquire as to whether the title insurance provider has affiliated business arrangements with any of the other participants in your deal. Such an arrangement creates a conflict of interest that you as the buyer should try to avoid!

Do you have questions or want Hallmark Abstract Service to send you one of our title bills for comparison purposes?

The contact information of Hallmark Abstract Service is as follows:

Information: info@hallmarkabstractllc.com
Title Orders: orders@hallmarkabstractllc.com
Long Island: (516) 741-4723
Manhattan: (646) 741-6101
Fax:               (516) 741-6838