New Jersey Amends Law Relating to Title Insurance

A recent amendment to New Jersey’s title insurance law codified a consumer’s right to exercise free choice when selecting a title or settlement services company and subjects any agreement entered into by a consumer for such services to attorney review and revocation as part of the contract for sale of real estate.    

The amendment includes penalties for persons who violate the provisions, including business license suspensions and fines, the lengths and amounts of which depend on whether it is a first, second, or subsequent violation.

Additionally, the amendment repeals the provision of New Jersey Title Insurance law which considers it an unlawful rebate, subject to penalty, if rates and charges for personal or controlled insurance from any one source exceed 25 percent, or from all sources exceed 50 percent, of the total rates and charges received by a title insurance company or agent.