“There are so many costs to sell a home. Why am I supposed to pay for title insurance? I know there are no liens against my home. I’m sure a simple title search would show this.”
Great question. Several clients have asked me this over the years…
Title insurance covers more than just recorded liens, so a title search isn’t sufficient. Nor, obviously, is your statement that the title is clear.
But the most correct way to answer your question is that indeed you do not legally have to provide title insurance. However it’s the expectation of every buyer and their agent that you will.
If you were to refuse to pay it, the best case is that the buyer would subtract that from the price they’re willing to pay. And the worst case is they don’t buy your San Diego home because they feel you’re unreasonable or (incorrectly) suspect that you have title issues you’re not disclosing.
So, to put it bluntly, just bite the bullet and pay it like every other homeseller does.