Was buying a house. Went to see a lawyer. Got list of prices for closing. Was told title insurance for New Jersey was mandated by the state and was 1,765 for a $410,000 house. Recently looked at contract and realized that I was charged $2500 for title insurance by my lawyerinstead of $1765. I am going to see him about this but would like to be prepared for his response. Anyone know reason for descrepancy? Or is my lawyer ripping me off.
Thanks, Dave

I may be totally wrong here (full disclosure - last time I bought a house in NJ was 1986), but I don't believe that Title Insurance prices are regulated to the extent that the price is determined solely by the selling price of he house, any more than auto or homeowner's insurance is determined solely by the value of the property being protected. There are a lot of insurance companies out there, and they are in competition with each other. Caveat Emptor - shop around for the best rate!

Your attorney was correct. The price for title insurance in NJ is regulated by law. It is a certain amount per $1000 of purchase price. However, that is the cost for the title insurance premium. There are other services provided by the title insurance company that are added to the final bill. These costs include fees for the title search, the court searches, obtaining tax, assessment, water and sewer info, additional endorsements to the title policy that may be required by the lender, copying, overnight mailings, etc.

The amount you were quoted doesn't sound out of line. But if you are concerned then you can call any title agency in NJ and ask them what the total title bill would be for the purchase of a $410,000 house. Ask them to include all fees in their estimate and not just the title premium.

Your attorney was correct. The price for title insurance in NJ is regulated by law. It is a certain amount per $1000 of purchase price. However, that is the cost for the title insurance premium. There are other services provided by the title insurance company that are added to the final bill. These costs include fees for the title search, the court searches, obtaining tax, assessment, water and sewer info, additional endorsements to the title policy that may be required by the lender, copying, overnight mailings, etc.

The amount you were quoted doesn't sound out of line. But if you are concerned then you can call any title agency in NJ and ask them what the total title bill would be for the purchase of a $410,000 house. Ask them to include all fees in their estimate and not just the title premium.


Thanks for the quick response. Sounds like a good idea. I call around and then ask him anyway.
Thanks again. Dave