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Title insurance is pure profit in some states. In Texas, the state sets the premiums and this is dependent on the home sale price [1].

In TX, for every $1 collected by title insurance companies, the insurance companies paid out roughly 1-2 cents. 98-99% profit. [2]

I have honestly contemplated setting up my own title insurance company, advertise low rate title insurance but under the table give the buyer or seller half of the premium back to them.

[1] https://tdi.texas.gov/title/Titlerates2019.html

[2] https://www.texasobserver.org/entitled-to-profit-in-texas-ti...




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