title insurance question

3 Replies

I'm a little unsure about how this system works, and of course, being cheap/frugal/ whatever, I hate to waste money.  So my question is this.  I get an invoice from the title insurance company that lists the cost for an owners policy and a sellers policy.  In my area at least, sellers pay both.  So it's about 1k.  But my question is, when I bought the house a few months ago, I bought title insurance as owner.  Now that a buyer is using a different company, they have a charge to "reissue owner's policy".  Do I need to buy title insurance to protect me as a seller?.  Or is this just a company trying to sell me their product?  At nearly 500 bucks, I don't need two policies that do the same thing.  Or do I?  Maybe the first owner's policy expires upon sale, and the sellers policy continues to protect me?  

if this seems muddled, I'm now the seller.  But buying title insurance to cover me as seller and the buyer 

I worked in the title industry for 10 years and never heard of a "Seller's Policy". We did Buyer's Policies and Lender's Policies. No idea why a seller would need title insurance. There is a reissue rate that is usually lower than the standard rate as they can fall back on the previous insurer if anything comes up from the previous title being run. You, as the seller, have no need to insure the title of a property you will no longer have an interest in (unless you're selling it on an owner-finance, lease-option or land contract...then you may want to consult an attorney).

thanks for the reply.   You are right I read it incorrectly.   Is the seller responsible for the lenders policy too?  

@Account Closed

The owner's policy you received at the time of purchase cannot be transferred to the next purchaser...a new policy would need to be purchased IF the buyer desires such coverage. 

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