How Much Does a Title Company Charge in Title Fees?

If any issues are discovered, the title company will work to resolve them before the closing.

Once the title is deemed clear, the lender’s title insurance company will issue a commitment to provide title insurance to protect the buyer and lender from any future legal claims against the property’s title.

Real estate attorney is explaining the closing costs such as lender's title insurance costs to the buyer

Title Fees

For example, a title search may reveal that there is an outstanding mortgage on the property that the seller has not paid off. In this case, the buyer would not be able to take ownership of the property until the mortgage has been paid off or otherwise resolved.

Title search fee

Before a property can be transferred, a title search should be conducted.

The cost of a title search fee can vary depending on the location and complexity of the search. A title search fee is the cost of examining public records regarding the property and determining the property’s owner.

A title search on a residential property in Illinois can cost a few hundred dollars, though many title companies include the search costs in the policy premium rather than charging a separate search fee.

A rack of files having information on details of title to houses in illinois

Title or settlement fee

A settlement fee, also known as a closing fee, is a charge that the title company charges to cover the administrative costs of closing, as well as handling the receipt and distribution of all funds and documents related to the transaction.

In Illinois, the settlement fee is based on the purchase price of the property and can range from around $1650 up to a few thousand dollars. This fee is typically paid by the buyer as part of their closing costs. (For a full breakdown, please see our article on closing costs on a house)

The settlement fee is an essential part of the property buying and selling process. It ensures that all the necessary administrative tasks and legal requirements associated with the property transaction are properly handled.

The fee helps cover the closing costs associated with the title company’s work in providing a clear title to the property and facilitating the closing and settlement process.

Title insurance policy document on a table along with a magnifying glass and a specs

Lender’s Title insurance policy

Lender’s title insurance is typically required by the lender as a condition of the loan. It protects the lender’s investment in the property and ensures that they have a valid lien against it.

For example, if a borrower defaults on a loan, the lender’s title insurance policy can provide coverage for any losses that may arise due to title defects.

The cost of lender’s title insurance is based on the value of the loan and is a one-time fee paid at closing. The policy remains in effect as long as the loan is outstanding.

Loan wooden blocks with a toy house over it and paper currencies on the left denoting the lender

Owner’s title insurance

Owner’s title insurance is technically optional, but highly recommended for homebuyers. Moreover, most real estate contracts in Illinois require the seller to pay for an owner’s title policy for the buyer. Owner’s title insurance protects the buyer’s investment in the property and ensures that they have a clear and marketable title to the property.

For example, if a title issue arises after the purchase of a property, the owner’s title insurance policy can provide coverage for any losses that may arise due to defects in the title.

The cost of owner’s title insurance is based on the value of the property and is a one-time fee paid at closing. The policy remains in effect as long as the buyer or their heirs own the property.

Attorney Fees

One of the other fees that you will need to pay at a closing in Illinois is the attorney’s fees. The real estate attorney reviews the contract, title and other legal documents to ensure that the transaction is legal and binding.

The cost of the attorney fee can vary depending on the complexity of the transaction and the location of the property. In Illinois, the average attorney fee for a real estate closing is between $500 and $1,000. This includes full representation from the contract review stage through closing.

If there are significant legal issues that arise during the transaction, the attorney may need to spend more time reviewing and resolving them. In this case, the attorney may bill hourly and the total fee may be higher.

Group of attorneys of Adler and Herbach

Recording fees

This fee is charged by the county recorder’s office for recording the deed and mortgage. The title company may also charge a small fee for its services in preparing and recording the necessary documents to transfer ownership of the property.

What’s the average Title fees in Illinois?

The average title fees in Illinois for a house vary depending on the value of the property and whether you are buying or selling. Title fees for a seller include title company service fees, or escrow fees, and an owner’s title insurance policy. As a seller, you’d pay around $2,500 in title fees for a $267,383 home — the median home value in Illinois.

Title fees for a buyer include the lender’s title insurance policy and other costs that vary depending on the lender and the location of the property. As a buyer of a $300,000 house, you’d pay around $1000 for a lender’s title insurance policy together with endorsements, plus an additional $2000 or so in closing and other service fees.  

How do I calculate title company charges in Illinois?

Title company charges can vary depending on the specific company and services rendered. However, some common fees include title search, title insurance and closing fees.

Here’s a step-by-step guide to calculating these charges:

Title Search Fee:

Title search fees can vary, but are typically around $150 in Illinois. Some title companies do not charge a separate search fee, but include the search in the price of the title policy.

Title Insurance Premium:

In Illinois, title insurance rates are set by each title agency and are based on the purchase price or loan amount. You can find a particular company’s rates either on their website or by contacting the company and asking for their rate card.


  • On a $200,000 property, the Owner’s title insurance rate for the largest Illinois title agencies is $1950.
  • On a $500,000 property, the same rate is $2550.

The law office of Adler and Herbach is affiliated with a company that offers a 50% discount to these rates for all of our sellers. Contact us to find out how you can save!

Closing or Settlement Fee:

The closing fee, also known as the settlement fee, covers the cost of preparing and conducting the closing. This fee varies based on the title company and the complexity of the transaction, but typically ranges from $300 to $800 in Illinois.

Learn more about Cash to close vs Closing costs.

Additional Fees:

Title companies may charge additional fees for services such as document preparation, courier fees, and recording fees. These fees can vary, so it’s essential to review the title company’s fees and charges beforehand.


  • The title company charges $150 for document preparation and $75 for courier and recording fees.

Now, let’s calculate the total title company charges for our example:

  1. Title Search Fee: $250
  2. Title Insurance Premium: $700
  3. Closing Fee: $500
  4. Additional Fees: $225 ($150 + $75)
  5. Total Title Company Charges: $1,675

These figures are for illustration purposes only, and actual fees may vary. To get an accurate estimate of title service fees for a specific transaction, consult with a local title company or real estate attorney in Illinois.

Where can you find the Title fees?

You can find an initial estimate of the title fees listed in the loan estimate provided by your lender. This document should include an itemized list of all the fees associated with your mortgage, including the title fees.

The final title fees can be found in a title invoice provided by the title company, the settlement statement generated by the title company at closing, and in the closing disclosure, which is a document that provides an itemized list of all the fees associated with your mortgage.

Specifically, the title fees are listed in section C of the closing disclosure, which includes the costs of services that are required for the transaction, such as the title search fee, title settlement fees, and title insurance fees.

Concluding how much does a title company charge in title fees


In summary, the cost of title fees in Illinois can vary depending on several factors, but on average, it can range from $2,200 to $3,500 for sellers and $2,000 to $3,000 for buyers.

Understanding the different fees that make up the total cost, such as title search fees, title settlement fees and title insurance fees, can help you calculate the charges accurately.

Review the purchase contract and loan estimate carefully to ensure that you understand all the costs associated with your mortgage.

By doing your research and asking questions, you can find the best deal and avoid any surprises when it comes to title fees.

Adler & Herbach is proud to offer 50% off seller-side title fees, thanks to an affiliation with the title agency United Settlement Services, LLC. Call today to learn more about how you can save at (847) 318-3770, or contact us on our website.

Uri Adler