Changes to Colorado’s title insurance statutes that remove hidden fees from the process went into effect earlier this month.
‘When purchasing a home, having title insurance in good order helps buyers be sure there are no problems with the home’s title, and that the seller really owns the property,” said Colorado Insurance Commissioner Marcy Morrison. “The recent update to our regulation recognizes the inherent value in services provided by title insurance companies and agencies, and moves to ensure these entities are compensated for valuable services, rather than passing hidden costs back to consumers in the form of higher premiums and closing fees.”
- Title insurance companies are not longer allowed to issue free property reports. They also cannot issue preliminary title commitments without charging for them. The products are expensive for the title insurance company, are frequently passed on to consumers in the form of higher premiums.
- Title companies can still teach classes about title insurance free of charge, but any costs not related to the business of title insurance must be passed on the people taking the class. Classes about internet marketing or how to prepare a real estate contract may not be provided without charge.
- Title companies cannot invest the funds they hold for other parties without first receiving written approval from necessary parties. A title company that earns interest on fiduciary funds must disclose the interest and give consumers the change to receive payment for interests over certain administrative fees