The title insurance seems reasonable to me but its impossible to know for sure without having the property address. 

@Michael HigginsI believe the question is contradictory.But first, to the title: The most general answer is NO.

I know some really good agents and title companies that are licensed across the state.

We hold title as tenants in common  with an assumed 50/50 share of each property. 

The way we structured it was that the 5% commission was a "gift" to my wife who was also on the loan/title.

Also, once on title, what are my construction loan options?

You'll be negative every month.As mentioned above, you can't do a clean seller finance (where you get the title at closing) unless you put down $80k to pay off their existing mortgage.  

You will want to make sure the title is handled correctly to remove both husband and wife and also make sure the chain of title is clear and has no "floating" judgments.  

On title it shows up as a UCC lien.

Your title and post are a bit unclear, @Andrew Carson.