Definitely not a scam and worth the cost.
The coverage on this, one time fee, is worth whatever you pay for it. Should a lien show up that had not been cleared prior to your ownership, this policy will do the work and cover the costs of clearing it for you.
The Buyer pays for the LENDER'S TITLE POLICY and half of the ESCROW.
If there was some agreement that changed this, we would not be aware of it; if you agreed to pay more, how would we know.
It has been my experience that a HUD1 is given to the Buyer weeks before Closing for their perusal.
You are going to have to discuss this with your Realtor and the Title Company:
None of this is set-in-stone.
If you donâ€™t want Buyerâ€™s title insurance (and I canâ€™t imagine why not â€“ ESPECIALLY in Berkeley), then you no longer get the concurrent rate for the Lenderâ€™s policy and you have to pay full price for the Lenderâ€™s Insurance. Standard policy. Standard rates. No scamming involved. No extra effort to work their profit center. Not ridiculous. And they are not worried about losing it, either. Itâ€™s totally legal, totally right, totally normal AND, if you donâ€™t sign off on it, the bank wonâ€™t fund your loan.
Totally simple. Totally standard. Totally legal.
And itâ€™s not a matter of him giving you the concurrent rate because he quoted it â€“ it was quoted concurrently. Take away the concurrent Buyerâ€™s insurance and his hands are tied â€“ he couldnâ€™t charge you less even if he wanted to. Rates and policies are governed by the state.