Title Insurance Covered by Sellers Property Solutions Company

[Lauren Rose]

I recently had my offer accepted on a bank owned foreclosure. The contracts were signed by myself and the seller (bank), so now I am starting the process of working with my bank for the mortgage. One of my friends is an attorney who said that he would waive the attorney fee and can do the title insurance on it.

We were just notified by the bank's property solutions company that "per the bank addendum, the seller will pay for the title insurance policy up to the sales price if the buyer uses their office for closing." Our bank said that it should save us about $4,000 in closing costs.

I sent that information to my friend (who is the attorney). He said that there is a clear conflict they have by doing the title insurance because they represent the seller.

Is that a huge problem? And I'm guessing we would have to pay the attorney's fee then if we go with the sellers company. How much does the attorney's fee usually cost?