USCTrojanCPA said:
shadyoc said:
USCTrojanCPA said:
Typically the resale seller pays for the owner's title and an owner's title policy is required in order for a lender's title policy to be obtained (which is required by the lender). The buyer pays for the lender's title policy (cost is about 1/3 of the owner's title policy but varies depending on the loan amount).
Yes, I am selling the home and I thought it would be the buyers who have to pay for the owner's title insurance not the seller who pays. On the escrow estimate, it is indicating that I, as the seller, should pay for their owner's title insurance. It also says "optional" besides it so I am inquiring to see if it is indeed optional. I am trying to verify if in California, owners title insurance is mandatory or optional. Since I am the first owner, I know there are no claims against the home, so I don't think owner's title insurance is necessary.....but if it is mandatory in California, I don't think I can get out of it.
A lot of sellers get confused by the "optional" wording and think that they don't need to have a title policy purchased. I'll put it to you this way, I would never let my buyer purchase a home without an owner's title policy because a seller may claim that there are no issues with title but that can not be verified without an owner's title policy. Plus a lender will require an owner's title policy in order to close on the loan. Have you asked your realtor (who I'm sure is using their title rep) if they can get you an owner's title policy discount? Because I also ask my title rep and my escrow officer if I can get a discount for my sellers. If you have a desirable property and get multiple offers, you can ask the buyer to pay for stuff that normally they won't like owner's title, HOA transfer fees, county transfer tax, home warranty, etc because everything is negotiable.
So why does it say optional, when it is mandatory?
There is also a lot of what I believe, are admin fees:
-a few hundred for document fee (isn't that part of what I pay for escrow fees and are considered costs of doing their job?)
-a few hundred (courier/postage/mail/wire fee (really, that much for this stuff??)
-a separate fee for messenger fee (shouldn't this already be covered under the courier/postage/mail/wire fee that they are charging a few hundred from above, already??)
-another wire fee (counted twice?)