April 20, 2017
Title co. identifies excess insurance costs
Real Estate Finance & Investment. Witten by Sondra Campanelli.
A recent study by OneTitle National Guaranty Company has found that New York City residential and commercial real estate buyers spent $81.2m in excess title insurance costs in 2016, costing the average buyer an extra $1,739 or 24.7%.
The study’s findings are based on an analysis of 46,699 individual real estate transactions totaling $156.1 billion in New York City in 2016. It includes purchases totaling $156.1 billion, reflecting the majority of transactions in 2016. The first  annual analysis from OneTitle documenting excess spending on title insurance released in June 2016 showed the impact of high-cost title insurance across New York State in 2015, but didn’t include Staten Island due to a lack of available data.
The largest potential savings were in Manhattan at $32m. Buyers in Queens and Brooklyn also lost out on potential savings, at $21.1m and $19.2m, respectively. Buyers in the Bronx and Staten Island could have saved $5.1m and $4.6m. On the average transaction under $200,000, buyers spent an extra 47% in title-related costs. For the largest transactions, the extra cost totaled well over $100,000 per transaction.