Several Title Fee Questions
I noted on the Purchase Agreement for the house I am buying that title fees are paid by the buyer. This appears to be standard contract language and thus non-negotiable. However, the last time I bought a house, in 2008, title fees were split between the buyer and seller. This was purchased with a different real estate company. Looking back at the purchase agreement, I see that this was also written into it and non-negotiable. So my question is, does the question "who pays for title insurance?" depend on the real estate company? Or is it determined by local or state law? I am in MN.
My second question concerns what exactly I should, or need to, purchase in terms of title insurance. I am getting a mortgage so I understand that my lender requires title insurance. However, it appears I'm also being asked to purchase owner's title insurance over and above this. Do I need it? is it a good idea?
Specifically, here are the fees I just received from the closing company:
Title Services (HUD line 1101)
1. 2006 ALTA Loan Policy --Title Resources Guarantee Co: $767.50
2. Buyer Closing Service Fee: $300.00
3. Title search and exam Fee: $600.00
Owner's Title Insurance Options (HUD line 1103)
1. 2013 ALTA Homeowners Policy $391.25
2. 2006 ALTA Owners Policy: $295.00
I understand that I have a choice between the two Owner's Title Insurance Options above. But if my lender is requiring title insurance, why would I want a separate Owner's title policy?
Thanks! Just trying to understand what all this means and what is best to do.