1) When you are buying a house, the lender/title company charges 1 to 2% as title fees/lender's policy fees(within the closing cost). That means they are assuring the lenders(not you) that the title is clear and if something happens they will take care of the title and the fee is paid by you and not the lender. Is this fair? This assurance is good as long as the loan is not paid off and once it is paid off the owner is on its own and how can the owner get covered by not paying too much. 2) When a house is sold off few times in few years, title company is making money all the time!! Same thing happens with car, when a car is sold few times, the total sale tax collected can exceed the cost of manufacturing the car. It is amazing how some entity will make money all the time.
