What is a Lien Procurement fee to the Seller?

Question

I'm selling a home with no liens. Yet the title company insists on charging me a Lien Procurement Fee as a title services charge. They say they charge this to cover the work they have to do to clear title so the property can be transferred.

I was under the impression the Buyer also pays this fee as a title search fee anyway.

Is this a double charge for the same service?

I was under the impression the Buyer also pays this fee as a title search fee anyway.

Is this a double charge for the same service?

Tom Gimer · Answer

The contract will dictate the fees attributable to each party. In MD the title search and exam are generally the buyer’s responsibility unless otherwise agreed. If the property is free and clear, absent some title issue that required additional work there is no justification for a release procurement fee or similar to be charged to the seller.

If the contract includes language (such as in GCAAR contract) concerning “that portion of the settlement fee attributable to the seller” then this particular title company when confronted will likely change the name of this junk fee to Settlement Fee or add it to wire/courier. You can thank your buyer for choosing a title company that is trying to gouge you. Raise the issue and perhaps a supervisor will remove the fee.

What is a Lien Procurement fee to the Seller?

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