Title insurance clause in P&S

[Adam K.]

Am in the process of purchasing a foreclosed property to rehab and flip and there was one clause that I didn't quite understand so thought I would post for some clarity.

Section: Closing Costs/Concessions
"Purchaser may choose the title insurance company for the closing. If Purchaser agrees to use the title insurance utilized by the Seller's attorney or agent, then Seller agrees to pay for Purchaser's Owner's Title Policy. SELLER WILL NOT BE OBLIGATED TO PAY ANY PORTION OF THE COST OF AN OWNER'S TITLE POLICY IF THE POLICY IS NOT OBTAINED FROM THE TITLE INSURANCE COMPANY UTILIZED BY SELLER'S ATTORNEY OR AGENT"

So I understand the concept of them paying for versus not paying for. I guess I'm wonderring why I would not just use their insurance company for the title to save some closing costs? Is there a real conflict of interest here and if so, why? The seller in this case is a bank who has foreclosed on the property.

Thanks,
Adam