Money left on the closing table - forgotten reissue title insurance credits

By
Real Estate Agent with Florida State Realty Group, Inc BK3089599

We all know that title insurance is a necessary cost that most all transactions incur. Depending upon your local customs and/or the negotiations between the seller and the buyer one of them is going to pay these charges.

No matter whom you represent no one wants to see any party overpay for this rather expensive protection.  The title company generally earns a 70% commission on this protection and i have found it rare that they volunteer ways to save money in this regard.

Any policy being issued within the State of Florida, wherein there was a prior policy issued within 3 years prior, is entitled to a substantial reissue credit.  Contrary to what many believe the new buyer is entitled to this credit.

For example, a new purchase would incur approximately $2500.00 in a new policy charge. Let's assume the property was purchased 2 years prior by the current seller for $350k.  The new policy would be entitled to a reissue credit of approximately $750.00. Please excuse the fact that I do not currently have the promulgated rate table available to me today. These numbers are provided as approximated illustrations.

We always seek the prior policy from the seller or track it down.  We're also amazed at the seller's Realtor that inquire as to why we're seeking the policy and that they're shocked to learn of this credit that is so often forgotten.

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Location:
Florida Broward County Fort Lauderdale
Tags:
title insurance
money left on the closing table

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Rainmaker
1,080,090
Bryant Tutas
Broker/REALTOR, Tutas Towne Realty, Inc
Bryant Tutas-Tutas Towne Realty, Inc
Stephen, I always seek this creidt. However, I am seeking for my Seller not the Buyer. In my area the Seller is paying for the Owners Title policy and is entitled to the credit. Is your area different?
October 01, 2006 06:06 PM
Rainer
17,361
Stephen McWilliam
ABR, CRB, CRS, GRI
Florida State Realty Group, Inc

Hi Bryant, yes - in Broward County it is customary that the buyer pays the title policy. I am suprized by the number of Realtors and title companies that claim to not be aware of this credit.

October 02, 2006 11:00 AM
Anonymous #3
Anonymous
Elaine

How do I locate a previous Title Insurance Policy if the client isn't able to locate thiers or remember the Closing Agents Name from previous transaction.  They don't have any of thier previous closing paperwork.

September 20, 2007 02:54 PM
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Rainer
17,361

Stephen McWilliam

ABR, CRB, CRS, GRI
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