Q: Is it required by law or is it just customary practice for the seller to pay for the title insurance for the buyer?
I am the seller. A prospective buyer made a very low offer. As an incentive for me to accept this low bid, he is acting as his own agent (since he has worked as a real estate agent in the past) and is foregoing a commission. (However, he did use my agent’s office’s forms to present the offer!) This would substantially lower the total commission that would be deducted from my proceeds. I guess their thinking is he gets a low purchase price and does not take a commission and my end result should be the same as if I had a buyer offering something closer to the asking price. As part of negotiating a better deal for myself, I want the prospective buyer to pay for his own title insurance. My agent said she did not think this would be possible. So, I am asking if seller paying for title work is required by Michigan law or is it a custom based on past precedent?
A: It is purely customary. The parties can negotiate who will pay for any fees or expenses as they relate to your real estate closing.
1 user found this answer helpful
A:
It is not required but you most assuredly SHOULD hire your own attorney to negotiate this deal yesterday.
As for the commission YOUR agreement with the real estate agent governs. You likely owe the commission regardless.
Get legal representation!
1 user found this answer helpful
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