Don't
Pay Junk Closing Costs and Junk Fees!
At Premier Title, we are serious
about being "A Different Kind Of Title Company." One
of the ways we are different is that we do not charge "junk" fees.
Unfortunately, some settlement agents give low estimates
to consumers for their charges, in order to get business.
At Closing, they surprise the consumer with a lot of
junk fees that they do not tell the consumer about
in advance. These annoying, usually small, charges
can add up to a material amount. While some may be
justified, many may not be. What are some examples
of junk fees? Only the imagination limits them. But,
here are some of the more common examples that we have
seen:
What are some examples of junk closing
fees?
- Title Exam Fee (It is no longer legal for settlement service providers to charge a title exam fee in Florida. This is now considered to be included in the title insurance premium.)
- Mortgage Satisfaction Fee (a normal part of clearing
title for which the title agent is paid through the
settlement fee and title premium.)
- Long Distance Telephone Calls (Some charge may
be justified where, for example, large numbers of
overseas calls must be placed. But normally, this
is simply a part of the settlement agent's overhead.)
- "Recertification” Fee After Closing
or “Title Update” Fee (This is a normal
part of the process of updating title after closing
prior to issuing the title policy and should be included
in the search and exam for a title premium.) An exception
to this is a construction loan where multiple updates
may be required as advances are made. A reasonable
charge for updating title in such circumstances is
justified.
- "Mailaway” Fee (There is no extra time
involved in a mail-away versus a face-to-face closing.
In fact, the reverse is frequently the case.)
- Postage (Except in unusual situations, a normal
cost of overhead.)
- Telecommunications Fee (A normal cost of overhead.)
- Document Storage Fee (A normal cost of overhead.)
- Document Scanning (A normal cost of overhead for
companies who want to reduce file storage costs by
converting from hard copies to digital images.)
- Wire Transfer Fee (This may be justified, where
the title agent's bank actually charges a fee. Beyond
that, the receipt and disbursement of funds is a
normal part of the closing process for which the
title agent is paid through the settlement fee and
the title premium.)
What are some examples of legitimate
fees and charges that Premier Title doesn't consider
to be "junk"?
- Settlement Fee, Title Search and
Title Insurance Premium (The normal fees that settlement
agents charge and are required by law to state separately.
These cover the costs of searching and examining
the title, making all the arrangements necessary
for closing the transaction, clearing the title (including
satisfying existing mortgages) updating the title
after closing, disbursing the money, recording the
documents and issuing the title policy.)
- Title Endorsements (Where required, the settlement
agent must list these charges separately and must
remit the appropriate amount to the title underwriter.)
- Courier Charges (These take time, involve an actual
out-of-pocket cost for the settlement agent and are
not required in all transactions.)
- Fees for Unusual or Special Services (Generally,
these don't require an additional or special fee,
but an increase in the Settlement Fee or the Title
Search and Exam Fee. These might include situations
where estates are involved; where lengthy, complicated
metes and bounds legal descriptions are involved;
where foreign buyers or sellers are involved; where
companies (including foreign companies) rather than
individuals are involved; where special arrangements
must be made for the execution of documents in remote
or unusual locations, etc., etc. The settlement agent
should explain these costs to the person paying them
as soon as the settlement agent knows that they will
be incurred.)
- Recording Fees and Taxes (These are the actual
fees by the county clerk to record the documents
involved in the transaction and the actual taxes
that must be paid when the documents are recorded.
They vary according to the number of documents and
number of pages that are recorded and the size (in
dollar terms) of the transaction involved.)
- Construction Loan Updates (Generally, in construction
loans, multiple advances are provided as construction
progresses. In such cases, lenders require
that the title be updated at the time of each advance
in order to ascertain that no construction liens
have been filed and to determine the status of title
prior to making the advance. The title agent
then certifies the condition of the title to the
lender who then proceeds to make the advance.)
For more information, please contact
Premier Title |
