Conducting TRID audit and ran across a situation that I can't find any clear guidance on - or maybe my brain is not interpreting TRID correctly

Do fees to a title company for resolution of title related issues fall under Section B (assuming they didn't shop) or do they fall under Section H? My brain is going to the concept that third-party fees not required by the lender go into Section H. However, while not required by the lender, it may be a requirement of the title company. Do their requirements become a lender requirement?

For Example: Closing Disclosure has an additional title fee of "Title - Well Permit Transfer Fee" paid to the Title Company. This fee was not listed on any Loan Estimate. The Title Commitment has no requirement related to water permits. Both the commitment and final title policies do include an exception for "water rights, claims, or title to water." Where should this go on the CD?

Title fees are title fees. They all go in the same box which is determined by whether the borrower shopped or not. Exception being Owners Title which is optional.

Additionally, the well rights are a part of your collateral inasmuch as the property needs water access. Any resolution of title issues would definitely be a requirement of getting the loan.

That said, this well permit transfer fee should have been known earlier in the process. Is this not something that is common for the area the property is located in? Who did the CD for this? If it's the title company, I'd be contacting them and raising a bit of heck because they should know better than throw a fee on without letting you know first.

Bottom line, imho, looks like you owe a cure if bank chose title company.

"Title - Well Permit Transfer Fee" paid to the Title Company

Well, that is probably not true, unless it is fee actually being charged by the title company. That is probably an other government fee (Section E) I am guessing, if the government entity that issues the permits requires a permit transfer fee to be paid.

Further conversation with the MLO leads me to think that you are on the money Randy!