"Caliban" wrote in
arthlink.net:

When purchasing a house (assume it's a cash payment, with no
mortgage):

Is who pays for the title search usually a negotiable point in the
contract?

In my area (Illinois), the buyer pays for title insurance.

What does a title company do for the money paid to it? Would a real
estate attorney paid to do a title search do the same thing?

Who really knows? :-) They supposedly research the archives for title
transfers and related legal documents, and verify that there are no
unaccounted for encumberances on the title, outstanding lawsuits,
unsatisfied leins, etc. Anything that prevents the seller from granting a
clear title to the buyer.


How much does title insurance cost?

Depends on the area and the house. I think it's based on the selling
price in most areas.


Are there ever fairly good reasons not to purchase title insurance?
(Sarcasm will be laughed at and then ignored. :-) )

As far as I know, a mortgage lender will always require a title insurance
policy in their name. If you, as a buyer, want to pay for an additional
policy that protects you, that's an option. In my area, few people seem
to purchase a buyer's policy. I think that records are kept well enough
these days that title problems are relatively rare, but they certainly do
occur. A title policy in your name would, in theory, cover your actual
expenses/losses should a claim be made against your title. However, if it
turns out that you don't have a clear title to your house, it doesn't
guarantee that you won't lose it, just that your losses can be recouped.
It's still a big, ugly, expensive mess, however.


What are some steps to take to prevent a title company from ripping a
buyer off with extraneous, inappropriate fees? (I already plan to ask
for a complete breakdown of the title fees.) For what extraneous,
inappropriate fees should I keep my eyes peeled?

In my experience, you pick a title company, they give you a number, you
write a check, and things move forward. Title searches and insurance
usually only run a few hundred dollars, and, as far as a house purchase
goes, don't really make much of a dent in the bottom line cost of the
deal.