Home Selling in Lincolnshire>Question Details

618pkeen, Home Buyer in Lincolnshire, IL

Please tell me under what circumstances a seller is responsible for title insurance in Lincolnshire, IL Thanks!

Asked by 618pkeen, Lincolnshire, IL Thu Sep 1, 2011

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Very simply - if the Seller has agreed to give you a Warranty Deed, that Warranty has to be backed by something other than the "good faith and credit" of the Seller.

So, the Seller will go and buy Title Insurance to back that claim up.

On your side, however, your Lender may require Title Insurance to protect the Loan, and they will require that You pay for it.

If there were a maximum claim - the Seller or someone before them sold it to someone else - the Seller's Title Insurance would pay you, and the TI you bought for the Lender would pay them.

Now, if the Seller isn't offering a Warranty Deed, then you migh want to buy it for yourself, mightn't you?
2 votes Thank Flag Link Thu Sep 1, 2011
In Illinois by convention, the seller is responsible for the title policy. Just like by convention 105% is the estimated tax proration for unknown taxes. That can go up or down. Clear title and insurance that the title is not clouded is really important and as a buyer you dont want a titile policy with a lot of conditions on it. Your lender wont like it either and might not underwrite the loan. Attorneys are agents for the title company and betweeen the two attorneys this matter should be handled to protect your best interests.

if you like my answer, best answer me and thumbs up, thanks!
1 vote Thank Flag Link Fri Sep 16, 2011
The Seller is responsible to provide a title insurance policy for the buyer if the contract states that. It is customarily done in this area but it is negotiable. It is also customary for the Buyer to provide a policy for his lender. Your attorney can give you advice regarding your specific situation.
1 vote Thank Flag Link Thu Sep 1, 2011
In Cook County, it is customary that the seller purchases a title insurance policy that insures for the buyer that the title is free and clear of any clouds. Typically the buyer also buys a title policy that insures their lender of the same.

The buyer's policy is generally a bit cheaper, since they have just run the same policy research for the seller's policy.

It's actually a good policy to have, for both of you. If there is some sort of problem with your title (and remember, this is Cook County, we just emerged from Torrens Certificates not too long ago), the title company is the one who's at risk.
0 votes Thank Flag Link Thu Sep 1, 2011
Alan May, Real Estate Pro in Evanston, IL
MVP'08
Contact
Hi 618pkeen,
Usually seller is reimbursing the buyer for the cost of Owner's Policy. This policy protects buyer's deed.
There also are other fees involved. If the property is financed - the buyer is responsible for Lender's Policy fee. This is title insurance that protects buyer's lender.
In Lincolnshire there also is a $3 per $1000 purchase price real estate transfer tax that is paid by buyer, but depending on the situation you can try to negotiate with the seller and have them pay a part of this tax or all of it.
Please contact me directly should you need more details.
Best,
Peter Schifrin
Express RE Group, Inc.
847 630 6843
0 votes Thank Flag Link Thu Sep 1, 2011
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