If a sale contract states that a buyer is to pay the seller's title insurance expenses and this is not customary in the area, the buyer must

If a sale contract states that a buyer is to pay the seller's title insurance expenses and this is not customary in the area, the buyer must

• A. Pay the expense
• B. Not pay the expense
• C. Pay only a portion
• D. Pay only if approved by lender

Answer: (A)

The key idea is that a signed contract governs who pays what in a real estate deal. If the contract explicitly says the buyer will pay the seller's title insurance expenses, that obligation becomes binding, even if it isn’t customary in the area. Local practice can’t override a term that both parties agreed to in the contract. The buyer is responsible for those costs as specified, unless the contract is later amended by both parties. The lender’s approval isn’t a factor unless the loan documents impose its own cost rules. So the buyer must pay the expense.

The key idea is that a signed contract governs who pays what in a real estate deal. If the contract explicitly says the buyer will pay the seller's title insurance expenses, that obligation becomes binding, even if it isn’t customary in the area. Local practice can’t override a term that both parties agreed to in the contract. The buyer is responsible for those costs as specified, unless the contract is later amended by both parties. The lender’s approval isn’t a factor unless the loan documents impose its own cost rules. So the buyer must pay the expense.