Delaware Title Insurance To Increase
Buyers and Sellers in Delaware are going to see an increase in the Title Insurance rates beginning March 1, 2015. Buyers and Sellers should ask their agent about this increase so that they can properly estimate the necessary closing costs for their real estate transaction. It can get complicated, but here is a summary of some of the more important points.
In Delaware the settlement attorney is usually an agent for a title insurance company. They base the estimate on the premium for the Owner’s title policy.
1. The owner’s rates are shown at the bottom of the second page of the attachment which is from page 4 of the manual. Many lawyers encourage their clients to obtain the Enhanced Homeowner’s Policy for an owner occupied home. The premiums for the Homeowner’s Policy are 20% more, but then there is not an additional charge for endorsements (see item 3 below).
2. Then add $25.00 for the simultaneous issue of the Loan Policy for the lender.
3. Most lenders request certain endorsements to the title policy. For your typical residential home settlement it would be good to estimate for three endorsements at $50.00 each totaling $150.00.
4. Closing Protection Letter is now $125.00. (Formerly $75.00)
5. If a title policy has been issued in the past 5 years, there is a reduction in the standard rates of approximately 40% up to the amount of the previous policy.
Your Lender will be updating their systems to reflect the new changes in their Good Faith Estimates.
Lenders will be updating their systems to use these new rates for their good faith estimates of closing costs.
. Click here for a few pages from the new rating manual.
REMAX By The Sea
Bethany Beach DE 19930
Direct: 302.537.3171
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