QUESTION
Am I required to pay a risk fee for real estate?
Asked on Jun 18th, 2015 on Estate Planning - Illinois
More details to this question:
My mother passed away in February. I am the executor of the estate. I have all the Legal papers filed and the deed release notarized. I have just been told by the Title company that I am required to pay a $1000.00 fee for title risk because she hasn't been passed for more than one year. Is this true?
3 ANSWERS
Commercial Attorney serving Chicago, IL
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Ashcraft & Ashcraft, Ltd.
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If you opened a probate of your mothers estate you should not be transferring title to the real estate or distributing estate assets until after the creditor claim period expires. If you did not open a probate of your mothers estate then you are not properly transferring title. If you are not the court appointed executor then you are a stranger to title and do not have proper authority to transfer title. The title insurance company will insure over that risk.
Answered on Jun 22nd, 2015 at 12:20 AM
Probate Attorney serving Palatine, IL
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Law Offices of Robert H. Glorch
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Have you actually been appointed by the probate court as executor? What you describe sounds more like a bond in lieu of probate, used when there is no probate estate.? A 1-2% premium for a bond in lieu is typical.
Answered on Jun 19th, 2015 at 11:04 PM
If you are avoiding probate, there is a bond in lieu of probate usually 2% of sales price charged by the title company. As the real estate gets more expensive it becomes less expensive to probate than pay the bond fee.
Answered on Jun 19th, 2015 at 7:41 PM