Return to the Buying and Selling Homes Forum | Post a Follow-Up

 o
Closing costs question - SW FL

Posted by stir_fryi (My Page) on
Mon, Dec 10, 12 at 17:05

In my parent's county in SW FL, the seller customarily gets stuck with much of the closing costs.

My question is -- in an all-cash transaction -- is it reasonable for them (the seller) to refuse to pay for title insurance for the buyer, if the buyer requests it? Parents (sellers) are original owners and never had a mortgage if that matters.

Since it is all cash and not required, why should they pay for it?


Follow-Up Postings:

 o
RE: Closing costs question - SW FL

Title Insurance is not a responsibility of the seller typically. It is the buyer and his/her lender to assure there are no liens or claims on the property before purchase. I would think the buyer wants to cover this cost unless it is specified in the sales contract.

BTW - The seller may wish to pay for closing cost/settlement which can be handled via the title insurance company which might clarify the issue at hand.


 o
RE: Closing costs question - SW FL

Paying for title insurance is technically negotiable, but here it's almost always a seller item.

Without title insurance, the buyer assumes the risk of problems in the future, things like former spouses, children or other heirs, judgments from workmen or contractors, unpaid taxes, assessments for sidewalks, fines for improvements done without proper permits.

The idea is that it's up to the seller to provide assurance that the buyer will actually own what he's paying for.


 o
RE: Closing costs question - SW FL

In these here parts (midwest), title insurance typically goes on the buyer's side of the settlement statement. If the parties have negotiated for the seller to pay any closing costs, that amount is credited as a lump sum on the buyer's side of the settlement statement.

There is some title work on the seller's side, for abstracting fee and state tax stamps, but that's it.


 o
RE: Closing costs question - SW FL

I would say, if it is customary in your area, and you choose not to, are you willing to lose the sale? It is really a pretty small amount of money. And, if it really bothers them, they can counter for x dollars more than the offer price to cover the fee.


 o
RE: Closing costs question - SW FL

This varies from area to area. In this midwestern state, the seller typically pays for the title search and pays for the buyers title insurance. The buyer pays for the secondary policy (bank policy) when required.


 o Post a Follow-Up

Please Note: Only registered members are able to post messages to this forum.

    If you are a member, please log in.

    If you aren't yet a member, join now!


Return to the Buying and Selling Homes Forum

Information about Posting

  • You must be logged in to post a message. Once you are logged in, a posting window will appear at the bottom of the messages. If you are not a member, please register for an account.
  • Posting is a two-step process. Once you have composed your message, you will be taken to the preview page. You will then have a chance to review your post, make changes and upload photos.
  • After posting your message, you may need to refresh the forum page in order to see it.
  • Before posting copyrighted material, please read about Copyright and Fair Use.
  • We have a strict no-advertising policy!
  • If you would like to practice posting or uploading photos, please visit our Test forum.
  • If you need assistance, please Contact Us and we will be happy to help.


Learn more about in-text links on this page here