What is Title Insurance  and title insurance costs
Purchasing a home is probably the single biggest investment you will ever make. When you do decide to purchase in our community, whether it'sLivonia real estate or Novi real estate, before closing on your new home, you'll want to know that no other individual or entity has a right, lien or claim to the property.

Determining that who has rights and interests to the property is what the Title Insurance Company.

There are two types of policies.  An "owners" policy as well as the "lenders" policy.  An owners policy is paid for by the seller.  A lender's policy is required by the mortgage lender and is paid for by the buyer.  The sellers policy is the more expensive one.  The cost of the policy varies from state to state and is based on the purchase price/sale price for the owner's policy and for the lender's policy it is based on the mortgage amount.  Did you know that title costs make up most of your closing fees.

Usually the title company is chosen by the selling agent so your mortgage person, or buyers agent has no control over what is being charged.  The fees the title company charge may vary from company to company but here is a list of some of the common charges.

Title closing cost- A charge for their service to process and closing the transaction.  Usually $300 to $500
Wire fee - a charge to pay what the bank charges to wire money whether it is coming or going out of their bank account $15 to $25
Courier fee - a fee to cover their overhead of a person that runs to the county offices, post office. $25 - $50
Overnight fee - a fee to cover the cost of overnight packages that are being used for payoffs of the old mortgage company $15 -$35  Double if there are multiple mortgages.
Recording fee - a fee usually charge by the county to record your mortgage and deed.
Price depends on how many pages $75 -$100
Title insurance is based on the mortgage amount or the sales price according to whether it is an owners policy or lenders policy.

Average title closing costs range from $700 to $1100.  These make up a large portion of your total closing costs.

One of the marked advantages of title insurance is that prior to a policy being issued, the title insurance company completes extensive research into relevant public records, maps and documents to trace ownership of the property and determine if anyone other than you has an interest in the property. Through its research, the title insurance company can usually identify any title problems that may arise and have these problems cleared-up prior to closing.  In most cases there will be a clause in the Sale and Purchase agreement that states exactly who is responsible to take the necessary corrective action in the event of a title defect.

The usually issue is that a lien that was filed was never released.  Some of the examples are:
      An old mortgage may be showing up.  You may have paid it off years ago but the bank may never have recorded the release.
      Or a construction company may have put a lien on the house for windows or an addition.  You paid them off but they never released the lien.
      The home was inheritance and the dead person's name is still showing as the owner.
      An association has a lien for dues.  The seller paid them but the association never lifted the lien.
      Another person is showing as the owner.

The way the title company clears these is that the seller, the title company, the mortgage person may have to track down the company, or the person and get the necessary paperwork.  It may be a release of lien, a death certificate,  a quit claim deed.  Usually it is not a major problem, it just takes times to get it taken care of. 

The title work will have the legal description, the amount of City and County taxes, if the taxes are paid up to date, and any assessments owed. 
Your title insurance owner's policy will describe the property and outline any recorded limitations on your ownership. It will also set forth the title insurance company's responsibilities should any claim covered by the policy terms arise. Typically your title insurance will protect you from loss:

• if someone contests your title in legal action (the title insurance company will defend the title at no expense to you),
• or if there is a title defect that cannot be eliminated (the title insurance company will protect you from financial loss up to the amount of the policy).
  
  By having title insurance you know that your Wayne county home, Oakland county home, or Livingston county home has good title,is free and clear of liens, and that the taxes are up to date.  A lender won't give you a mortgage unless they know that the title is clear and the taxes are paid up to date. 
  

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