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Originally Posted by DETRoadster
In WA (this may be the same everywhere) the land seller pays for the title insurance. In our transaction, the seller apparently sprung for a better title insurance package called the "ALTA" title insurance. Our agent said that was a good thing.
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From what I can tell from online articles, the common arrangement in SC is for the lending bank to make the buyer pay for their "lender's title insurance" as a closing fee. This policy only protects the bank in case of title defects, and only pays them the amount of their loan.
Buying "owner's title insurance" is optional, and 100% on the buyer. It protects you from someone coming out of the woodwork and claiming full or partial title to your land from events in the past, from things like contested estate settlements, liens, judgements, etc. There is also a premium add-on that covers encroachments, right-of-ways, survey errors, etc. No way would I close without at least the basic owner's title insurance.
FWIW, we spoke with the listing agent this morning, and will likely be taking a road trip this weekend to walk this lot and maybe a few others in the area.
My next area of research is whether we want to close with the property in our names, a trust, or set up an LLC? I'll probably wind up talking with a SC real estate attorney for advice on this.....