What is Title Insurance?

Title insurance protects buyers and lenders from financial liabilities arising due to faulty title or hidden liens associated with the property. There are two types of title insurance. Lender’s and Owner’s. 

Lenders approve a loan until they buy the lender’s title insurance or lender’s policy. This way the lenders are safeguarded against defaults arising due to the title. On the other hand, the owner’s policy protects the buyer in case they are unaware of any title defects or liens.

How much does Title Insurance Cost in New Jersey?

Like many states, the cost calculation is pretty straightforward in New Jersey. There are 4 slabs to calculate the title insurance cost in New Jersey. 

A property worth $200,000 would cost around $950 as title costs. You should also add an additional $100 for the title examination. The cost of loan policy remains a flat $25 for every mortgage irrespective of its value. 

Take note that this price does not include the cost of endorsements. Endorsements or liens on a property will cost further. 

How to Calculate Title Insurance for New Jersey?

Like we have mentioned, there are 4 price slabs that decide the title insurance cost. These are:

Property Rate Cost per $1000
$0 - $100,000 $5.25
$100,001 - $500,000 $4.25
$500,001 - $2 million $2.75
Over $2 million $2.00

 

  • For a purchase price of a $350,000 property in New Jersey with 20% down payment ($70,000), the cost of title insurance policy and lender's policy are $1,588 and $25 respectively. 
  • For a purchase price of a $350,000 property in New Jersey bought with full cash, the cost of the title insurance owner's policy is $1,588. 
  • For a purchase price of a $500,000 property in New Jersey with 20% down payment ($100,000), the cost of title insurance owner's policy and lender's policy are $2,225 and $25 respectively.
  • For a purchase price of a $500,000 property in New Jersey bought with full cash, the cost of the title insurance owner's policy is $2,225. 
  • For a purchase price of a $1,000,000 property in New Jersey with 20% down payment ($200,000), the cost of title insurance owner's policy and lender's policy are $3,600 and $25 respectively. 
  • For a purchase price of a $1,000,000 property in New Jersey bought with full cash, the cost of the title insurance owner's policy is $3,600. 

Who Pays for Title Insurance in New Jersey?

The buyer usually pays title insurance policy in New Jersey for both Owner’s and Lender’s Policy.