An Attorney Opinion Letter (AOL) can save consumers money upfront. However, unlike a Title Insurance Policy, the buyer or homeowner has limited recourse and will be responsible for any liens associated with the property that may have been missed during the title search. Below is a comparison of the two options:
Attorney Opinion Letter (AOL)
- Cost: Generally cheaper upfront.
- Coverage: Limited; the buyer/homeowner has little recourse if issues arise.
- Risks: If a title issue is found, the buyer must prove attorney negligence to make a claim. If not proven, the homeowner bears the legal costs.
Title Insurance Policy
- Cost: More expensive upfront.
- Coverage: Comprehensive; covers various title issues and provides financial protection.
- Risks: Minimal; the insurance company handles claims and legal costs.
Who Should Pay for Title Insurance?
The cost of title insurance is negotiable and can be split between the buyer and seller or covered entirely by one party. This varies by region and is often specified in the purchase contract. For example:
- In northeast Ohio, the cost is typically split 50/50 between the seller and buyer.
- In central Ohio, the seller usually pays for it entirely.
- In southern Ohio, the buyer typically covers the cost.
Our attorney has created a real estate purchase contract exclusively for our clients, allowing the parties to select from four different options:
- Buyer does not select a Title Insurance Policy.
- Buyer pays for the Title Insurance Policy (specifying the preferred type).
- Both Buyer and Seller each pay half of the Title Insurance Policy (specifying the preferred type).
- Seller pays for the Title Insurance Policy (specifying the preferred type).
This selection can be modified via counter offers during negotiations.
If you are interested in learning more about Title Insurance, consider consulting with a real estate attorney, your local title insurance company, or exploring the numerous resources available online.
Selling your home independently, without the help of a traditional Real Estate Brokerage, demands both dedication and thoroughness. However, this effort can result in significant savings on commission fees. Effective marketing exposure is crucial. With decades of industry experience and over a billion dollars in real estate sales, we have saved sellers millions in commissions. Contact our team to discover how Ohio Broker Direct’s For Sale By Owner Ohio Flat Fee MLS Listing options can boost your marketing exposure, ensuring a quicker sale at a higher price with better terms tailored to your needs. Reach out to us directly, visit our blog, or sign up for our newsletter to stay informed and maximize your profit.
