I've read that title insurance charges here in Florida are much higher than in other states. I haven't compared them myself, so I don't know that. And it's not the point of this post.

We always review the HUD statements for our clients, prior to closing.

This week we were reviewing a HUD statement for our buyer, and noticed that the title company was charging a $450 "processing fee". We objected, and so - independently - did our client.

Title companies used to charge, say, $325 for "title insurance" for a simultaneous issue. Since the actual cost to the title company was $25, this was considered an "Upcharge", allowed by the underwriter.  In the last few months, the underwriters announced to the title companies that they would take their share, probably 33%, of the whole "title insurance" cost. To avoid this, many title companies are now charging $25 for title insurance, and switching the remainder to "processing fee". They explain that "it's the same charge, just in a different place". And how do we explain this to our clients? And what about cases like this one when it's not $300 being switched, but $450?

It seems our buyers are being held hostage by title insurors that the seller chooses (since using a separate title company instead of a simultaneous issue would be prohibitially expensive. A few agents are now inserting a clause in their offers that restrict the amount the buyer will pay for title services.

Are you dealing with this?  How?

Sharon Simms, Real Estate Agent selling homes in St. Petersburg, Florida, the Gulf Beaches and the Tampa Bay area.