The New Jersey Title Insurance Rating Bureau sets out the rating schedule on how to determine the state mandated title insurance charges. In NJ instead of a percentage (%) discount the refinance and reissue rates are based merely on a lesser amount per thousand dollars of coverage. This creates a bit more confusion for consumers but luckily all of the equations have been put into calculators so no one really needs to calculate NJ title insurance by hand.
The actual charge for New Jersey Title Insurance whether it is for a owners policy or lenders policy should not differ from one NJ Title Company to the other. What really separates one NJ Title Company from the other is the level of service and the charges for ancillary services which at times can create a big difference in fees.
For clarification purposes the following is a detailed synopsis of how the New Jersey Title Insurance rates work.
MINIMUM CHARGE
The minimum underwriting charge in any transaction shall be $200.00.
BASIC UNDERWRITING RATE SCHEDULE
The basic underwriting rate for either owner’s insurance, leasehold insurance, or mortgage insurance, shall be calculated according to the following rate schedule:
| Policy Liability Rate per $1,000 or Fraction Thereof | |
| $0-$100,000 | $5.25 |
| $100,001-$500,000 add | $4.00 |
| $500,001-$2 million add | $2.75 |
| Over $2 million | add $2.25 |
REISSUE UNDERWRITING RATE SCHEDULE
The following reissue underwriting rates for either owner’s insurance, leasehold insurance, or mortgage insurance shall apply only when the insurer is presented at the time of application for insurance with a copy of an owner’s policy of title insurance, effective within ten (10) years of the present application, insuring the present owner, and the premises to be insured is identical to or included within the property previously insured. Reissue rates hereunder shall be applicable only to the extent of the prior policy liability. The underwriting rate for the excess shall be determined by the applicable bracket for the basic underwriting rate. When the property being insured is a portion of the property previously insured, the prior liability shall be equitably allocated.
REISSUE UNDERWRITING RATE SCHEDULE:
| Policy Liability Rate per $1,000 or Fraction Thereof | |
| $0-$100,000 | $4.25 |
| $100,001-$500,000 add | $3.25 |
| $500,001-$2 million add | $2.25 |
| Over $2 million | add $2.00 |
UNDERWRITING RATES FOR REFINANCE, RECAST OR SUBSTITUTION LOANS, AND MORTGAGE OR LEASEHOLD MODIFICATION AGREEMENTS.
REFINANCE, RECAST OR SUBSTITUTION LOANS
When a refinance, recast or substitution loan is made to the same borrower on the same property, the following rates shall apply to so much of the new policy as represents the face amount of the mortgage or mortgages other than construction loans being refinanced:
| Policy Liability Rate per $1,000 or Fraction Thereof | |
| $0-$100,000 | $2.50 |
| $100,001-$500,000 add | $2.25 |
| $500,001-$2 million add | $2.00 |
| Over $2 million | add $1.50 |
UNDERWRITING RATE APPLICABLE TO LOT DEVELOPMENT, SUBDIVISION, OR CONDOMINIUM REGIMES
When title insurance has been issued to an owner of a tract of land, an operative builder or condominium developer and such party sells unimproved lots complying with a lot development plan or completed units out of the subdivision or condominium, the reissue underwriting rates and reissue examination charges shall be applicable to the entire amount of the insurance. For the purpose of this section, “lot development” shall mean the subdivision of a contiguous tract of land into a minimum of five parcels for resale as lots; an “operative builder” shall mean one who constructs a group of at least five units on a single tract or series of contiguous tracts; and a “condominium developer” shall mean one who has developed units pursuant to the New Jersey Condominium Act, the New Jersey Horizontal Property Act, or has created a cooperative regime.
UNDERWRITING RATE APPLICABLE TO DEVELOPMENT OR CONSTRUCTION LOANS
The underwriting rate for a construction loan binder, commitment or policy of title insurance insuring the priority of a temporary construction mortgage which is to be paid off within three (3) years of the recording of said mortgage shall be $1.00 for each $1,000.00 of liability or fraction thereof, payable at the time that insurance liability is incurred. At the end of the said three-year period, said insurance coverage shall terminate. Prior to said termination, the insured may elect to obtain a permanent policy of title insurance. If a mortgagor requests owner’s insurance or obtains substitute financing and title insurance is sought from the same insurer, the applicable basic or reissue underwriting charge shall apply except that a credit of $1.00 per $1,000.00 of liability of the permanent policy shall be credited against the underwriting charge for that policy. Said credit, however, shall not exceed the amount paid for the three-year construction loan binder, commitment or policy.
The word “binder” as used herein does not refer to the search or examination of title, but to the underwriter’s undertaking to insure.
UNDERWRITING RATES FOR REFINANCE, RECAST OR SUBSTITUTION LOANS, AND MORTGAGE OR LEASEHOLD MODIFICATION AGREEMENTS.
REFINANCE, RECAST OR SUBSTITUTION LOANS
When a refinance, recast or substitution loan is made to the same borrower on the same property, the following rates shall apply to so much of the new policy as represents the face amount of the mortgage or mortgages other than construction loans being refinanced:
| Policy Liability Rate per $1,000 or Fraction Thereof | |
| $0-$100,000 | $2.50 |
| $100,001-$500,000 add | $2.25 |
| $500,001-$2 million add | $2.00 |
| Over $2 million | add $1.50 |
