Title Work Explained

If you get an attorney's opinion of title, which is just a general report of what liens exist on the property (if any) and who actually owns the property, the cost of the report and attorney's opinion is $75 to $150 dollars. But keep in mind it is just that... an opinion of title.

If the buyer wants a guarantee they have clear and marketable title, the attorney will have to analyze the abstract. An abstract looks like a phone book in most cases, depending on how old the property is. It is a record of every single person who has ever owned the property since it was built. The attorney combs through this data and determines that everybody's i's were dotted and t's were crossed over the past 50 to 100 years, or whenever the property was built. After the abstract has been thoroughly analyzed, the attorney makes a more informed "opinion" of how clear the title actually is. And since a lot more thorough investigation has been performed, a group of guys who own a title insurance company will grant a policy on the property based on this attorney's findings. This insurance policy GUARANTEES the title is clear and marketable, even if the attorney made a mistake when analyzing the abstract. So, if somebody from the past comes along and claims to have equitable interest in the property, the insurance will pay them off if their case has validity - no questions asked. A title policy will normally cost the buyer $350 to $500 dollars.

Depending on if you have the abstract in your possession or if it was lost years and years ago depends on your cost. If you have to rebuild the abstract from scratch, it can cost upwards of $1,500 to $2,000 dollars. If you have the abstract in your possession or if it is in a security deposit box at the title company you closed the property at, then it will save you hundreds of dollars. In that case, you are looking at about $500 to $1,000 dollars.

Hypothetically speaking, if you just do a title report and attorney's opinion plus recording fees for the deed, closing costs will run $250 to $400.

If the buyer opts to get title insurance and you have the abstract in your possession, you are looking at $350 to $500 for title insurance (usually paid by the buyer) and another $250 to $500 for the attorney to analyze the abstract (Usually split 50/50 between buyer and seller since it benefits them both - they want to buy and you want to sell)

If you don't have the abstract and the attorney has to rebuild it, it will cost $1,000 to $1,500 or more plus $350 to $500 for title insurance.