Order Online  We offer MLS Listing Packages for ALL Ohio MLS Districts. Order Your MLS Listing Package Online Today.
ATTORNEY LETTER OF OPINION OR TITLE INSURANCE POLICY

ATTORNEY OPINION LETTER VS TITLE INSURANCE POLICY & WHO PAYS FOR IT

ATTORNEY LETTER OF OPINION VS TITLE INSURANCE POLICY

In short, an Attorney Opinion Letter (AOL) may save the consumer money on the front end, HOWEVER, unlike a Title Insurance Policy, the Buyer/Homeowner has virtually no recourse and will be responsible for any liens associated with the property that may have been missed during the title search. Please review the comparison table below.

Whether you are selling your home For Sale By Owner or via a licensed Real Estate Agent, Real Estate Broker, Realtor, it is important to note the DIFFERENCES between an Attorney Opinion Letter (AOL) and varying coverage offered by the three different Title Insurance Policy options.

  • Should a TITLE ISSUE arise on a property covered by an Attorney Opinion Letter (AOL) only, the buyer would need to prove negligence on the part of the attorney to pursue the claim with them. See RISKS of Alternatives to Title Insurance.
  • If not proven, a claimant HOMEOWNER would likely need to pay the legal costs involved to litigate the title matter, posing a financial burden and a significant risk.

WHO SHOULD PAY FOR IT

The subject of a Title Insurance Policy leads to an interesting question. WHO SHOULD PAY FOR IT – the SELLER OR BUYER? A purchase agreement is to be negotiated between the Buyer and the Seller and every aspect therein is NEGOTIABLE! Clearly the way title insurance is addressed within the purchase contract needs to be a discussion point. Which party pays varies throughout the state. In northeast Ohio most purchase contracts have the Seller and Buyer splitting the cost of title insurance 50/50, in central Ohio most purchase contracts have the Seller paying for it in its entirety and in Southern Ohio most purchase contracts have the Buyer paying for it. The Cincinnati and Dayton Boards of Realtors revised their contract to reflect 3 options for the Buyer to choose from 1. No title insurance policy 2. Seller to contribute $300 toward a title insurance policy 3. Buyer to pay for title insurance policy.

There is a lot of talk about creating a statewide purchase agreement for use by ALL the Boards of Realtors. As a Real Estate Broker, I believe the Buyer and Seller, whether For Sale By Owner, Full Service or utilizing an Ohio Flat Fee MLS Listing Service as offered by Ohio Broker Direct, should be made well aware of ALL of their options and understand they have the right to negotiate who pays for each item on an individual basis.  Should this come to fruition, as a Real Estate Broker, I would like to see 4 options as checkbox selections on the purchase agreement. This selection may not be binding as it can always be modified via counter offers during the course of negotiation.

  • Buyer does not a select Title Insurance Policy
  • Buyer pays for the Title Insurance Policy (specifying which type of policy they prefer)
  • Both Buyer and Seller each pay half of the Title Insurance Policy (specifying which type of policy they prefer)
  • Seller pays for the Title Insurance Policy (specifying which type of policy they prefer)

If you are interested in learning more about Title Insurance, you might consider consulting with a real estate attorney, your local title insurance company or viewing the numerous resources available online.

Respectfully,

Joan Elflein, Broker / Ohio Broker Direct

Ohio Broker Direct & its Brokers or Associates assumes no responsibility or liability for any errors or omissions in this blog, we advise all participants in buying or selling real estate to enlist the services of a Real Estate Attorney.

Ohio Broker Direct & its Brokers or Associates assumes no responsibility or liability for any errors or omissions in this blog, we advise all participants in buying or selling real estate to enlist the services of a Real Estate Attorney.

Latest Posts

What is Wholesaling Real Estate in Ohio? 

Dive into the legalities of real estate wholesaling in Ohio. Understand the need for a broker’s license, the importance of due diligence, and the latest legislative updates with Ohio Broker Direct. Stay ahead in the market by making informed decisions and advocating for fair practices in the dynamic landscape of Ohio real estate wholesaling.

Ohio Realtors Advocating For Buyer Representation Agreements After Commission Lawsuits – Who Benefits?

This article delves into the complexities surrounding Buyer Representation Agreements in Ohio, highlighting the need for transparency and ethical standards within the real estate industry. We examine the implications for buyers and professionals, advocating for a collaborative approach to ensure fairness and integrity. Join us in exploring the path towards more equitable real estate transactions and the role of advocacy in shaping consumer-friendly legislation.

How to Protect Your Privacy in the Real Estate Industry

In this post, we delve into the importance of protecting your privacy in the real estate market. Learn how to effectively opt-out of unsolicited communications, safeguarding yourself against spam calls, emails, and phishing attempts. Ohio Broker Direct advocates for your rights, offering guidance on navigating these challenges. Join us in championing a more secure, transparent, and ethical industry.

Keller Williams Case and Its Implications for Real Estate Transparency

In this post, we delve into the Keller Williams settlement and its far-reaching implications for real estate transparency and fairness. We examine how this pivotal case influences For Sale By Owner (FSBO) and flat fee MLS listings, highlighting Ohio Broker Direct’s commitment to leading the industry towards greater equity and clarity.

Buyer Agency Agreements: Enforcement or Termination

Discover key insights from an Ohio real estate case in our blog, highlighting the significance of Buyer Agency Agreements and the ethical responsibilities of agents. Learn the impact on buyers and the importance of clear, honest communication in property transactions.