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Buying a house in IL. Questions on Title company fees

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I got my closing document from the lending company and got the following as title company fees. This company is used by my lawyer so I decided to go with them (I know my mistake). Here are the fees:

TITLE – CLOSING PROTECTION LETTER to PRECISION TITLE COMPANY $100.00
02 TITLE – LENDERS TITLE INSURANCE to PRECISION TITLE COMPANY $2,035.00
03 TITLE – SETTLEMENT FEE to PRECISION TITLE COMPANY $1,850.00
04 TITLE – TITLE ENDORSEMENTS to PRECISION TITLE COMPANY $540.00
05 TITLE – TITLE EXAMINATION to PRECISION TITLE COMPANY $195.00
06 TITLE – TITLE GUARANTY–LENDERS to PRECISION TITLE COMPANY $3.00
07 TITLE – TITLE SEARCH to PRECISION TITLE COMPANY $250.00
08 TITLE – WIRE FEE to PRECISION TITLE COMPANY $80.00

Anyone know if this is the norm or is this too high? The property is in IL, price is 465K if that matters. Total cost is $5053. On top of this they charge buyer title insurance (optional) for $730. I have reached out to the lawyer asking them to get the fees reduced.

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rated:
Seems a little high for the purchase price. What's the total closing cost excluding property taxes, insurance?

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How much of a house did you buy?

Fees can go up in certain cases of high priced or really LARGE homes.

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Yes, seems high.

No relation to the company, but I've have good luck with binding quotes from EntitleDirect.com, either going with them directly or having my lender/broker and their favored title compact match the quote. I didn't know which city or what your loan vs purchase price was, but their title insurance policy for Chicago, IL with $465k price (80% loan) was $1,307 total for both lender's and buyer's policy. There's about another $1k or so of fees that EVERY title insurance/settlement company will charge (e.g. deed prep, title search, etc.)

So broadly speaking, you're being charged over double what is nominally available.

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forbin4040 said:   How much of a house did you buy?

Fees can go up in certain cases of high priced or really LARGE homes.

  2700 SQ foot house. I have reached out to the lawyer to see whats going on.

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In my part of IL, the seller typically pays for the lender's title insurance. In some other areas, I know it is customary for the seller to pay just for the buyer's policy instead. Does your contract have you on the hook for both?

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DesiVibe said:   I got my closing document from the lending company and got the following as title company fees. This company is used by my lawyer so I decided to go with them (I know my mistake). Here are the fees:

TITLE – CLOSING PROTECTION LETTER to PRECISION TITLE COMPANY $100.00
02 TITLE – LENDERS TITLE INSURANCE to PRECISION TITLE COMPANY $2,035.00
03 TITLE – SETTLEMENT FEE to PRECISION TITLE COMPANY $1,850.00
04 TITLE – TITLE ENDORSEMENTS to PRECISION TITLE COMPANY $540.00
05 TITLE – TITLE EXAMINATION to PRECISION TITLE COMPANY $195.00
06 TITLE – TITLE GUARANTY–LENDERS to PRECISION TITLE COMPANY $3.00
07 TITLE – TITLE SEARCH to PRECISION TITLE COMPANY $250.00
08 TITLE – WIRE FEE to PRECISION TITLE COMPANY $80.00

Anyone know if this is the norm or is this too high? The property is in IL, price is 465K if that matters. Total cost is $5053. On top of this they charge buyer title insurance (optional) for $730. I have reached out to the lawyer asking them to get the fees reduced.


Both the title insurance and settlement fee seem outrageously high. I'm in Indiana, but just sold a home slightly less than that price ($425k), and it was less than half of that.

$100 for a CPL? Paid $35 here.
Closing fee was $400...title insurance was $830.

$80 wire fee? LOL. Ridiculous.

Sounds like you are about to close? Time to change firms?

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Just heard back from the lawyer with numbers from the title company. The total is about $3300. The numbers I got from the lender were grossly inflated and they will send the updated numbers before closing. PHEW

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I'd have blown up if somebody handed me a GFE like that, and being told the actual was only $3k would not totally satisfy me.
At least it's only 3/4% now, but it still feels like a lot.
Is the lender's title policy 2035+540=$2575 of the $3300?

I'm used to seeing (in Michigan) owner's title insurance, overnight fees, title recording fees and transfer tax charged to the seller, and mortgage title insurance charged to the buyer.
Title Exam, and Title Search (same thing, two names?) would be included in the insurance premium IIRC. If there's an additional fee for handling the paperwork (Settlement fee, closing fee), I'd expect a hundred to two, not a thousand or two.

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Taxmantoo, The gfe comes from the lender. They only can estimate and generally makes sense for them to estimate as high as possible (before knowing which 3rd party title company one might pick) and then they could only update based on info the title co does or not give them. Not sure why you'd blow up on the lender's GFE. The gfe should have clearly marked those 3rd party fees as "may go up or may go down any amount". The scumbag title cos (and the realtor who selected it) is who you should be angry at.
The title co should be able to give you the exact fees upfront (and often they are required to by state laws but still refuse -- the commit paperwork on my purchase said they were required to when asked but they refused to provide any fees to me until closing.)  The title co is who to ask on fees, they're a 3rd party and get to set them.

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DesiVibe said:   Just heard back from the lawyer with numbers from the title company. The total is about $3300. The numbers I got from the lender were grossly inflated and they will send the updated numbers before closing. PHEW
  Look elsewhere for title insurance and you might be able to pay even less. They tried to take you for a ride and got caught. They are not trustworthy.

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The letter I initially got was from the lender. It was a closing disclosure form issued 10 days before the closing. I forwarded the numbers to my lawyer stating they look ridiculously high and the lawyer sent me the actual numbers that the title company sent them. Seller charges are $3350 that includes owner policy.Buyers charges are $3283 all inclusive.

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