Which reason would typically make a title insurance requirement legal?

The requirement for title insurance being disclosed before closing is a key factor that makes it legal. Transparency in real estate transactions is essential, and when the requirement is disclosed, it ensures that all parties are informed about their rights and obligations. This disclosure allows buyers to understand the necessity of title insurance, which protects them from potential claims against the property, such as liens, disputes, or other issues that may arise after the purchase.

While it's true that title insurance is a common practice in real estate, simply being common doesn't inherently make it legal—the necessity for disclosure is what legitimizes this requirement. The options regarding limited choices for the buyer or benefits solely to the title company do not establish a legal foundation for the requirement and could lead to potential issues regarding consent and fairness in the transaction.