@ilzhoefer wrote:
Hello:
I received my Navy Federal Credit Union Closing Costs detail and I would like to get some advice from you.
What is the difference between the following:
A) Title Survey Fee $500 (cannot shop for) (Is this a survey of the property??)
B) Title- Lenders Coverage Premium $350 (can shop for)
C) Title- Settlement Fee $350 (can shop for)
D) Title- Owners Premium $1313 (Seller is giving me this credit)
My contract states that the seller is paying for Title owners policy equalling to $1313.
So what's A,B,C??
Sorry for the stupid question. I figured I would ask you and then Monday get clarification from NFCU.
You have a paragraph in your purchase and sale contract that specifies who is paying what for title services. It is a negotiable item. In your contract you have the seller paying owners title insurance so the seller gets to choose which title company they are going to use to close the sale.
Each title company has different fees on top of the promolgated rate for the actual title policy. Those fees are called settlement fees. Both the buyer and the seller pay settlement fees. What they mean by 'shop for' those fees is that you (or whoever is paying for the title) can shop for title company services as the fees vary widely from company to company. I have seen settlement fees range up to over $900 so your fee of $350 is reasonable IMO.
Your lender wants to be covered against title issues and you are responsible for that payment. There are usually endorsements too so ask the title co if this fee includes title endorsements. The actual cost for lenders coverage is very low, on the order of $25. But title companies add to the cost to generate additional profit. This is a high profit item to the title company. This add on fee can sometimes be negotiated with the title company. Neither the lender nor the seller have any control over what the title company charges.
I have never seen the phrase "Title Survey Fee". You will have to get that explanation from the title co. Here in my area the title company orders the land survey but it is also a third party vendor for which you can shop price and services.
