When selling a home, the title company will need to issue a new Title Insurance Policy to the new owner. This is an insurance policy that protects the new owner to any problems that may occur down the road. Think of it as similar to car insurance. It is a protection for both you and the Buyer because there may be situations from the past that may not surface until you go to sell or later down the road that the Buyer may hold you accountable for even though you had no knowledge of the problem during the time you owned the home or when you sold it.
Typically, the Seller pays for a new Title Policy but keep in mind everything is negotiable. Also, the fee to issue a new Title Policy is universal and will be the same no matter which title company you choose.
In addition, if you have lived in the home for less than five years or had the home refinanced within the last five years, you will be entitled to what is known as a Turn In Rate. This rate is about half the cost of the quoted rate. This is because the title company doesn’t have to do an extensive title search since back ten, twenty or thirty years from the last sale date.