Released: April 30, 2007

Title insurance costs: too high?

Source: Kenneth R. Harney, Washington Post (Free Registration)

Title insurance typically is a large, mandatory cost for home purchasers and mortgage refinancers - often in the $1,000 to $2,000 range. But is the price too high for what you actually get?

Equally important: Do widespread referral relationships among real estate brokers, title agents and mortgage companies restrict price competition, create anti-consumer conflicts of interest, and discourage buyers from shopping for lower-cost title-insurance and closing-service options?

The Government Accountability Office examined the title industry in depth and came up with some unsettling findings in a new report:

“Multiple characteristics of current title insurance markets, as well as allegedly illegal activities by a number of those involved in the marketing of title insurance, suggest that normal competitive forces may not be working properly, raising questions about the prices consumers are paying.”

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