re: Home Mortage Closing Costs: Bait & Switch, Is It Legal?

First, when you buy both an owner's policy and lender's policy together, you get a simultaneous issue rate. Not sure of the underwriter, but for one of the big national ones, if you buy them together, you pay the cost of the owner's policy plus $100 extra for the lenders. It's a major discount and an incentive to buy both.

Second, many title attorneys eat some of the cost of doc prep and other costs they incur when they issue a title policy. When they don't issue the policy, they need to make up for those costs.

Third, the cost of the policies are regulated by the department of insurance in Louisiana. You can check the rate tables for most national companies online.

Finally, your second post states that it is in a subdivision and a "straight line title" owned by the seller. This means nothing in regards to clear title. Sure, there may not be any issues with regards to the dimensions or servitudes affecting the property, but you have no idea what judgments or liens have been recorded against the seller. Also, he may have granted and option or right of first refusal, a donation, or a usufruct that affects the property. Also, how did he acquire the property? Was it through a succession? Was there previous title work done?

The attorney can rely on the public record, but what if there is a lawsuit down the road that invalidates the previous acquisition by the seller? Then you have a claim against your property that the title attorney is not responsible for. Are you ready to defend that claim?