Rental Property Investor · Stuart, FL · Member since 2014 · 280 posts · 68 votes
Hi BP,
This is a question for any investors who are familiar with the closing costs associated with commercial multifamily purchases; that or title attorneys.
I would like to know what a ballpark figure would be for title insurance on a $1mil , $2mil and $5mil commercial multifamily property? I understand that it will probably depend on a lot of other factors that I'm leaving out of this question, but for hard and fast calculations, what do you think?
As a residential agent, I know for my area the formula is $500 per $100k purchase price.
So to follow up, I was looking for title insurance in Texas, and because title insurance rates are statewide (at least in TX) the answer to my question is as follows:
For a $1mil purchase , $5,575 - owner’s title policy premium Plus $1115 if you order aSurvey, T19 (mineral survey) and endorsements
For a $2mil purchase: $9,905 - owner's title policy premium Plus $1,981 if you order a Survey, T19 (mineral survey) and endorsements
For a $5mil purchase: $22,895 - owner's title policy premium Plus $4, 579 if you order a Survey, T19 (mineral survey) and endorsements
Attorney and Real Estate Broker · Madison, WI · Member since 2016 · 265 posts · 100 votes
6y
The rates should be published in most states according to the department of insurance. Title insurance is regulated by the same governmental agency that regulates life insurance, disability insurance, etc. So they have filed rates, usually within a min-max range. The rate is usually a schedule based on purchase price. So it looks like x for the first $x, + x per dollar for the next $x, etc until you get to your property value. In Wisconsin the policy charge on a $2M would be something like $2300 I believe. That is just the policy rate though. It does not include search fees, endorsements if needed, closing costs, deed preparation and recording, etc. But yes as others have noted a call to a title company or two should clear up your total estimated charges for a specific deal ahead of time. Best wishes!