Yes, you read that correctly. Every few years, the Texas Department of Insurance (the state agency that regulates title insurance) looks at title industry data to see how we are doing, and to see if a rate increase or decrease is warranted. The statistical data is provided to TDI by title insurance agents and underwriters. Currently, due to many factors including rising real estate prices, the Department implemented a 4.9% rate decrease, that went into effect on September 1st, 2019. The new rate will applies to all real estate transactions in Texas, including sales, refinances, and any other transactions that include the purchase of a title policy.
A decrease might sound surprising, but over the last 25 years, we have had several rate decreases, but only one rate increase. Is that a bad thing? Not at all. Periodic adjustments are healthy and a great indicator as to the strength of the Texas economy and the efficiency of the Texas title premium rate regulations.
Reposted with permission from Independence Title.