On January 22, 2009 the Title and Escrow Commission in conjunction with the Utah State Insurance Department invoked a new rule:
Rule R592-13. Minimum Charge For Escrow Services.
This new rule requires all title insurance agencies operating in the state of Utah to charge a uniform minimum fee for escrow services.
The fee aoumt is determined by the purchase price/ loan amount of the transaction and includes the combination of both the closing/ settlement fee and the document preparation fee.
These are the new rates, effective April 1, 2009:
The new minimum charge requirements will be applied as follows:
|
Purchase Price/ Loan Amount |
Minimum Escrow Fee |
|
$0 to $180,000.00 |
$150 per side |
|
$180,000.01 to $250,000.00 |
$250 per side |
|
$250,000.01 and above |
$350 per side |
Note this is a minimum fee.
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Here's the rule as published by the insuracne commission, or http://www.insurance.utah.gov/rules/ .... scroll to the bottom of the web page ...
R592. Insurance, Title and Escrow Commission (Effective 1-22-09)
R592-13 Minimum Charges for Escrow Services
R592-13-1. Authority.
This rule is promulgated by the Title and Escrow Commission
pursuant to the authority provided in Section 31A-2-404,
authorizing the Title and Escrow Commission to write rules, and
Section 31A-19a-209, authorizing rules to establish minimum
charges for escrow services.
R592-13-2. Purpose and Scope.
(1) The purpose of this rule is to establish minimum charges
for escrow services.
(2) This rule applies to all title insurers, agencies and
producers providing escrow services in Utah.
R592-13-3. Definitions.
In addition to the definitions of Sections 31A-1-301, 31A-2-
402,and 31A-19a-102, the following definitions shall apply for the
purpose of this rule:
(1) "Charge" means a dollar amount charged for a service
rendered by a title insurer, title agency, or title producer.
(2) "Minimum escrow fee" means the lowest amount that can be
charged for escrow settlement services that are rendered which
incorporates both the escrow closing charge and the basic
document preparation charge.
(3) "Pass through charges" means the actual and reasonable
charge or expense for services rendered that are not included in
the minimum escrow fee.
R592-13-4. Minimum Charge for Escrow Services.
(1) A title insurer, agency and producer providing escrow
services in Utah must not charge less than the minimum escrow fee
for each side of the transaction. The minimum escrow fee shall be
as follows:
|
Purchase Price/ Loan Amount |
Minimum Escrow Fee |
|
$0 to $180,000.00 |
$150 per side |
|
$180,000.01 to $250,000.00 |
$250 per side |
|
$250,000.01 and above |
$350 per side |
(a) As an example:
(i) On a real estate purchase of $100,000 the minimum
escrow fees would be as follows:
(A) $150 charged to the buyer;
(B) $150 charged to the seller.
(ii) On a refinance loan amount of $300,000 the minimum
escrow fee would be $350 charged to the borrower.
(2) All other charges or expenses must be actual and
reasonable passed through to the consumer.
R592-13-5. Penalties.
A person found, after a hearing or other regulatory process, to
be in violation of this rule shall be subject to penalties as
provided under Section 31A-2-308.
R592-13-6. Enforcement Date.
The commissioner will begin enforcing this rule 90 days from the
rule's effective date.
R592-13-7. Severability.
If any provision of this rule or the application thereof to any
person or circumstance is for any reason held to be invalid, the
remainder of the rule and the application of the provision to
other persons or circumstances shall not be affected thereby.
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Mike B. Class Star®
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