NJ Settlement Fees
Unlike other states the State of New Jersey mandates not only the charges for NJ Title Insurance but also the actual settlement fees. In many states it is common for a buyer/borrower to not have to pay any closing fee, especially when settlement is held at the title company. However, a NJ Title Company must charge a specific amount in conjunction with the transaction. The starting closing fee enforced by the New Jersey Title Insurance Rating Bureau is $300.00. (Section 6.2 of the New Jersey Title Insurance Rate Manual) Moreover, the state requires a NJ Title Company to add to this standard fee based on some of the below scenarios. Regardless of the fact that both NJ Title Insurance rates as well as settlement fees are regulated by the state, it is important for a buyer or borrower to make sure they are working with a NJ Title Company that does not charge excessive ancillary fees.
Settlements with Disbursements
The state mandates that if a transaction settles with disbursements outside the NJ Title companies office, $25.00 shall be added to the settlement charge. “Out-of-pocket expenses for tolls, parking, lodging, rail or air fares and other travel-related items (if applicable) shall also be charged.”
Settlements outside normal business hours
If the settlement with disbursements is scheduled to commence outside regular business hours (9am to 5pm) at the request of a party to the transaction or his or her attorney, $50.00 shall be added to the minimum settlement charge (for a total charge of $350.00). (Section 6.2.2 of the New Jersey Title Insurance Rate Manual)
Settlements with out disbursements
New Jersey works almost like 2 separate states. For much of the Southern part of the state a NJ Title Company will handle the disbursements like in most other states. However, in the central and northern part of the state it is common practice for the buyer’s attorney to handle the disbursements. In these types of transaction the NJ Title Insurance manual states that a starting charge of $150.00 is required. This charge increases if the settlement is longer then usual ($25), outside of the NJ Title Company office ($25) or outside of business hours ($50).
All of the above is a synopsis from the New Jersey Title Insurance manual prepared by the New Jersey Title Insurance Rating Bureau.
At World Wide Land Transfer we look to assist consumers all the time in finding not only the best possible service but also the lowest prices permitted by law. If you have any questions or would like to get a quote on what it will cost you for your purchase or refinance transaction feel free to contact our offices at 215-245-5650 or click here for a NJ Title Insurance Quote.
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