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Asked by Vanessa Carter, Flippin, AR Wed Oct 17, 2007

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Answers

8
Ute Ferdig, Agent, Newcastle, CA
Wed Oct 17, 2007
BEST ANSWER
Hi Vanessa. I don't know how they do things in Marion County. Everything's negotiable, but there are certain local standards. Some areas it's customary for the seller to pay for the title insurance. In other areas the cost for the owner's title policy is split 50/50 and the buyer is responible for the lender's policy which usually costs less than the owner's policy (it's based on the loan amount).
The one thing you should know is, no matter who pays for the title insurance, it's the buyer's choice which title company issues the insurance.
Web Reference:  http://www.theMLShub.com
1 vote
Pam Winterba…, Agent, Danville, VA
Thu Oct 18, 2007
In my neck of the woods it is customary for the buyer to pay title insurance. However, in a neighboring county the seller pays for title insurance. Each county has customs but everything is negotiatable especially in our current market.
1 vote
Richard M. J…, , Sherman Oaks, CA
Thu Oct 18, 2007
Hi Vanessa, In Los Angeles County, the Seler will pay for owner's title insurance policy and the buyer pays for the title insurance policy insuring the Buyers lender.
1 vote
Bridges Real…, Agent, Fayetteville, AR
Thu Oct 18, 2007
As an Arkansas Realtor, I think I can help settle this question. I realize that you're in North Central AR, but perhaps the customs are not dissimilar from those of NWA. In NWA, it is customary practice for Buyer and Seller to split the cost of a combination owner's and mortgagee's title insurance policy ordered by the Seller, although the ARA approved Contract does allow for several other options, and EVERYTHING in Real Estate is negotiable. This option tends to be less expensive for both Buyer and Seller than purchasing Title Insurance separately (and, yes, the Seller does need coverage when selling). With cash transactions, typically, the Seller furnishes, at Seller's cost, an owner's policy of title insurance; there is no need for a mortgagee's policy, because there is no mortgage. It is also customary in my area for the Seller to choose the Title Company, however, the Buyer is not bound by this custom, and if the parties cannot agree, a split closing using two Closing Companies can be arranged. Often we run into split closings when Corporate RELO Buyer Clients are required by the Relo Company to use a particular Closing Company. For common practice in your area, call a local Realtor.
1 vote
Patti Pereyra, , Chicago, IL
Wed Oct 17, 2007
Hi Vanessa,

To elaborate on what Ute said about buyers being able to choose the title company, in Illinois, the seller pays for the owner's title insurance and typically goes with whatever company is chosen by their attorney.

However, per RESPA, a seller cannot REQUIRE that a buyer use a certain title company. Again, the seller does typically choose since they are paying for the title insurance; however, if a buyer or the buyer's lender is not satisfied with the choice, the buyer can ask to choose a different company.
1 vote
Deborah Madey, Agent, Brick, NJ
Wed Oct 17, 2007
I have seen this vary quite a bit by area. In NJ, the buyer pays and the title company is usually chosen by the attorney representing the buyer.
1 vote
Patti Pereyra, , Chicago, IL
Wed Oct 17, 2007
Actually, it depends on the location, and is negotiable.

In Illinois, the seller pays the title policy, the buyer pays the lender policy, per contract. Again, this is negotiable, but it's how it is typically done in Illinois.
1 vote
ian cockburn, Agent, New Orleans, LA
Wed Oct 17, 2007
The buyer. The seller is selling the property and has no need for anything covered because he is selling it...ie the rights to the property
Web Reference:  http://www.iansellsnola.com
1 vote
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