Owner's Title Insurance for a Cash Transaction

[Anonymous]

If I'm buying a property in DC for cash, is an owner's title insurance required? If it is, is a quote of 2200 for a purchase price of 315,000 reasonable? Do I have to go with a title insurance company on the HUD 1 used by by the settlement company or can I do my own shopping? Is a closing fee of 800 split b/w buyer and seller reasonable? Thanks.

[Anonymous]

Any ideas as closing date is upon us.

[Anonymous]

Insurance is not required if you don't want it. You can also shop around for the title insurance, although that is part of the money typically made by the closing company. I've learned that insurance is a very high margin business, as the fee charged by the issuing agent is multiples times the insurance premium. I don't know why this is, just that it is.

[Anonymous]

Not a requirement, but a wise choice. 2200 sounds high -shop around. $800 closing fee is reasonable.

[Anonymous]

Depending on the state, the title insuracne fee is set. YOu'll also see that the closing comapnytakes about half of it (it's on your hud1). That's where they make their money.

[Anonymous]

I wouldn't go without it. I had actually had to use mine. It's a calculated risk- normally you don't need to rely on it.

[Anonymous]

OP here. Thanks for all the replies. Can I reject the title insurance company on the HUD1 and look for cheaper options? 2. Should I get the standard or the enhanced?

[Anonymous]

The settlement company sells policies underwritten by one of two/three huge title insurers. You've chosen the settlement company already so that was your chance to choose the title insurance company. But prices are regulated in DC so it doesn't matter anyway.