Title Insurance - Guarantees that your new home has no other lien claims on the property and guarantees your undisputed ownership. Your lender requires that you have lenders title insurance on the home. Owners title insurance is also available for an extra charge, and is highly recommended. To create a public record of your legal ownership of the property, the lenders notify the county government to record the transaction. This fee, which varies by state, is paid to the county.
Most states stamp the deed rather then actually affixing a stamp.
It is a transfer tax that is collected, in some localities, whenever property changes hands. The lender is required to track the life of the loan to identify the flood zone status. If a property is later rezoned into a flood area, the lender will contact you and require flood insurance. The reserves are accrued in an escrow account that is set up by the lender and paid on the borrowers behalf when due. Estimated Closing Cost Expense Worksheet 1.