Title Insurance and Closing Costs

In Idaho, most purchase and sale transactions involving residences and land are handled by Title Companies, who prepare necessary documents, preside at the signing of final papers, verify the payment of funds, and record the change of ownership with the county clerk.


These title companies also search all available records for liens or judgments against the property, such as loans and liens filed against the seller by builders, service companies, and even neighbors who dispute a fenceline, for example. The object is to uncover any officially recorded claim that might come back to haunt you as a new owner after the sale.

Title companies issue an insurance policy, saying, in effect, that except for certain exceptions, which they are willing to name, they will defend your title against others who might try to threaten your ownership. This policy generally is paid for by the seller, at a price based on the price you pay for the property.

Selling commission, too, is almost always paid to the real estate agency by the seller. As a buyer, you will have much more modest closing costs. These may include half of the cost of preparing documents, all of the costs of securing a mortgage, and any unusual services you specify that are not usually necessary to close a transaction.

Before the time of closing, you will receive a detailed estimate of all costs you will be expected to pay, and you will have an opportunity to ask any questions that may occur to you. Your real estate agent can help you to be sure that you understand the charges, and that you are being treated fairly.