What is title insurance and why do I need it?

• Title insurance is an insurance policy, which protects the new home buyer from financial loss on a property that might occur as a result of previous matters or defects in title (due to liens, clerical errors, misrepresentation, forgery, fraud, etc.).
• Should a future claim be made against the home, the title insurance company would pay for legal defense and settlement costs.
• NY State home buyers typically will permit their attorney to order title on their behalf at the time of the purchase and sale contract execution. In addition, mortgage lenders will require the buyer/borrower to obtain mortgagee title insurance up to the mortgage amount, to protect their first lien position in the real property.

How is title insurance different from my home owner’s policy?

What are closing costs for a home purchase in NY State?

• Closing costs are an unavoidable financial obligation for a home buyer and fluctuate based on the purchase price.
• Closing costs are comprised of the title insurance premium and the service fees for ancillary reports, surveys, endorsements, recording and courier charges required to execute the home purchase transaction. (This does not include any additional taxes assessed by the state, legal fees, mortgage related closing costs, mortgage taxes, etc.)

Why should I now be interested in learning more about title insurance and closing costs?

• Historically, a metropolitan NY home buyer has had little financial incentive to ‘shop’ for title insurance as the premium rates that have been approved by NY state law have been uniform throughout the industry.
• Houlihan Lawrence believes a shift in the title insurance market place is underway, and through a unique alliance with its underwriter¹, Thoroughbred Title Services, a Houlihan Lawrence affiliate, is now able to make title insurance available to its home purchasers at a 10% savings (unavailable through other title agencies).
• In addition, this affiliation enables Thoroughbred Title Services to offer other closing service fees at an additional 5 – 16% savings.

How much does title insurance cost?

• Title insurance premium rates are filed with the State and are based on the purchase price and mortgage amount of the home.
• Most recently, in an unprecedented move, one title insurance company, EnTitle Insurance Company, initiated a request with New York State for a 10% reduction in premium rates, which Thoroughbred Title Services will pass on directly to their customer. These rates are available in Westchester, Putnam and Dutchess Counties ONLY through a unique relationship between EnTitle Insurance Company and Thoroughbred Title Services, an affiliate of Houlihan Lawrence.
• Our online rate calculator can help you understand the costs involved in your transaction or you can contact Thoroughbred Title Services today for a quote customized just for you.

What are the key variables when choosing title insurance?

• Financial stability rating of title insurance underwriter (the company which is assuming the risk should a claim be made) EnTitle Insurance Company is an A’ prime (unsurpassed) rated insurance underwriter (according to Demotech, the leader in title insurance company ratings)
• Experience of underwriter - EnTitle Insurance Company has over 30 years of underwriting experience and licensed in 35 states and the District of Columbia.
• Ease of transacting title search
• Cost of title insurance premium and other service charges

When do I get title insurance and who is responsible for the selection of the policy?

• A title search is typically requested after the buyer and seller agree on the purchase terms, and after the contracts have been executed. The actual title policy is issued at the closing of the home.
• Until now, the overwhelming majority of the time, the NY homebuyer’s attorney selects the title insurance company. However, this practice is not common in other states and has resulted in limiting the control and cost savings for the NY homebuyer.
• The choice of title insurance company is the RIGHT of the homebuyer and only through a more ‘hands on’ approach will the homebuyer experience competitive policy pricing and unprecedented value.

How would I take advantage of the new lower rates?

• The homebuyer must request in writing that the attorney select Thoroughbred Title Services to issue the title policy. A sample letter is available here. Simply fill in the property address of the house you are buying, your attorney’s name, and then sign and send it to your attorney with a copy to us at the fax or email on the bottom of the letter.

What reaction can I expect from my attorney?

• Because this represents a shift in title insurance company referral patterns, some attorneys may question the request. Simply ask the attorney for a cost comparison between Thoroughbred Title Services and the title company of their choosing. Then YOU decide.
• According to federal law, the Real Estate Settlement Procedures Act (RESPA) entitles you as the individual homebuyer to select the title insurance company.

Is there a conflict of interest in obtaining title insurance from a company that is affiliated with the real estate purchase/sale transaction?

• No. Houlihan Lawrence and its affiliated business, Thoroughbred Title Services are 100% compliant with all state and federal regulations and regulatory agencies. In fact, buyers benefit from the higher levels of disclosure and transparency required under the law for affiliated businesses than for title companies that are otherwise unaffiliated in the transaction.
• Houlihan Lawrence’s and Thoroughbred Title Services’ interests are aligned with those of our buyer clients: ensuring clear title at the lowest possible cost with unparalleled service. In addition, the buyer’s attorney typically reviews all title-related documents to ensure that the buyer’s interests are fully protected.
• Thoroughbred Title Services adheres strictly to the underwriting guidelines of Entitle Insurance Company, which ultimately bears the risk of financial loss due to any defects in title for properties covered under policies issued through Thoroughbred Title Services. Neither Houlihan Lawrence nor its agents play any role whatsoever in the underwriting process.

Who is Thoroughbred Title Services

• Thoroughbred Title Services was established by Houlihan Lawrence to offer its customers a less expensive, faster and easier home closing experience.
• With over 17 years of experience in the Westchester real estate market, Thoroughbred Title Services (formerly Electronic Land Services) has a reputation for excellence, integrity, accuracy and unparalleled customer service.

How can Thoroughbred Title Services help me save money?

• Thoroughbred Title Services helps you save money by passing through closing cost savings direct to you. For the first time in NY State, their underwriter¹ has initiated a 10% discount. This is not available anywhere else. Second, Thoroughbred Title Services has streamlined the closing process and reduced service fees an additional 5 – 16% for a total savings of 15 – 26%.

Will anyone from Thoroughbred Title Services contact me?

• You may receive an email from Thoroughbred Title Services shortly after the time of an accepted offer alerting you to the closing cost savings opportunity.
• Should you prefer NOT to be contacted by our affiliated businesses, you will have an opportunity to ‘opt out’ when you sign our Affiliated Business Disclosure Form or at any time upon request.

¹EnTitle Insurance Company is an A’ prime (unsurpassed) rated insurance underwriter (according to Demotech, the leader in title insurance company ratings), with over 30 years of underwriting experience and licensed in 35 states and the District of Columbia.