It sometimes happens that a property is sold or refinanced more than once within a five- or ten-year period. In such instances, if title insurance is obtained from the same firm, it’s often possible to get a re-issue (discount) rate. The discount can represent a significant savings, thus it is worthwhile to ask if such a discount is available.
How much of a discount? According to Realtor.com, the discount can be as much as 50 percent and sometimes more. My look into the practice has found more modest discounts, say 10 or 20 percent.
The American Land Title Association says that “refinance or reissue rates are discounts off the rates that would otherwise be charged to insure the transaction. The size of the discounts vary, but they can be substantial. Consumers should ask the person handling their closing if refinance or reissue rates are available.
“ALTA also recommends consumers purchase owner’s title insurance to protect their investment when purchasing a home or property. Owner’s title insurance protects the consumer’s use and enjoyment of the property. However owner’s title insurance does not need to be reissued during a refinance. It is good for as long as the owner or his/her heirs have an interest in the property.”
Long ago I interviewed a settlement attorney. He did virtually all of the closings for a builder, meaning that when the builder purchased a parcel of property the attorney obtained title insurance for the company. Then, as the builder sold off homes, new title insurance policies were issued to each purchaser. Since the attorney had done the prior title work I asked if re-issue rates had been issued to the new home buyers. It turned out that was not the case and refunds were soon issued to some 80 purchasers.
The California Land Title Association has an excellent calculator which can allow you to compare rates at: http://www.clta.titlewizard.com
Speak with your closing provider for details — as much ahead of closing as possible.