Current through Register Vol. 49, No. 6, March 15, 2024
(1) Disclosure with
Title Order.
(A) When a prospective purchaser
of title insurance or other party to the residential real estate transaction
contacts a title insurer, title agency, or title agent to order a title
insurance policy, the following price estimate must be disclosed:
1. Title insurance premium as calculated
based upon the filed title insurance risk rate(s);
2. Closing protection fee as calculated based
upon the filed closing protection rate;
3. Title service charges including, but not
limited to, abstracts and search and examination fees; and
4. Closing or settlement charges.
(B) The above items, if
applicable, may be disclosed orally or in writing.
(C) If the above prices are disclosed, the
amount may also be totaled.
(D)
Upon further inquiry or request by a prospective purchaser of title insurance
or other party to the residential real estate transaction for explanation, the
title insurer, title agency, or title agent may disclose orally that title
premium and closing protection fee are determined by rate schedules filed with
the state, but if so disclosed, shall at the same time also disclose that the
title service charges, closing charges, and other charges are not filed with
the state.
(E) If the title
insurer, title agency, or title agent discloses the above information in
writing when giving a price estimate, the following disclosure statement (Form
T-1), or a statement that substantially comports with the following, is
acceptable:
Title Insurance Premium and Title Service Charge
Disclosure Statement
To: _______________
Based upon the information available to us at this time, we
estimate that you will pay, as part of your residential real estate
transaction, the following premiums, charges, and/or fees:
1) Title insurance premium ________
2) Closing protection fee(s)
________
3) Title service charge(s)
(i.e., search and examination, clearing items, etc.) ________
4) Closing charge(s) ________
Title insurance premium and a closing protection fee have
been calculated according to rates filed with the Missouri Department of
Insurance, Financial Institutions and Professional Registration. However, title
service charges, closing charges, and other fees are not limited by state
law.
For further general information regarding title insurance,
you may visit the Missouri Insurance website at
www.insurance.mo.gov, or call
the Missouri Department of Insurance, Financial Institutions and Professional
Registration at (800) 726-7390.
___________________ ______________________________
Date Title Agent
(2) Disclosure at a Residential Real Estate
Closing. Title insurance premium, fee and charge disclosure at the closing of a
residential real estate transaction shall be made in the following manner:
(A) Closings that involve use of a HUD-1
form.
1. Premium should be the only amount
totaled on the "Title Insurance" line, usually line 1108. If multiple title
insurance policies are reflected in the "Title Insurance" line, the premium
amounts associated with each title insurance policy shall be distinguished on
the HUD-1 form on a line other than the "Title Insurance" line.
2. Other charges including, but not limited
to, the closing protection fee, abstract or title search and examination fees,
escrow, settlement or closing fees, or other associated charges or fees shall
be listed on lines other than the "Title Insurance" line; or
(B) Closings that do not require
use of a HUD-1 form. Disclosure shall be made on a disclosure form in
substantially the same format as the form set forth in subsection (1)(E) of
this rule, but with final price detail and an acknowledgement of receipt by the
purchaser.
(3)
Misleading or Confusing Terms in Marketing Materials.
(A) Title insurers, title agencies and title
agents shall not use the terms "rate," "card rate," "premium" or other terms of
similar import in marketing materials to describe an all-inclusive title
insurance price, which aggregates both:
1.
Premium; and
2. Charges that may be
negotiable in the particular transaction.
(B) The total amount in subsection (1)(C) of
this rule may be described in terms which convey both premium and charges, such
as "total cost for title insurance and services" or "total cost for title
insurance and charges."
*Original authority: 374.045, RSMo 1967, amended 1993,
1995; 381.019, RSMo 2007; and 381.042, RSMo 2000, amended
2007.
