Who typically pays for the title insurance premium?

The typical responsibility for paying the title insurance premium falls on the seller, though this can be negotiated during the transaction process. Title insurance is designed to protect against any title defects or claims that may arise after the property is purchased, making it a crucial aspect of the sale. In many real estate transactions, it is customary for the seller to cover the cost of the title insurance policy.

However, the negotiation process allows for flexibility, and it’s not uncommon for the buyer and seller to discuss and come to an agreement regarding who will pay for the title insurance premium. Local customs, market conditions, and the negotiating power of each party can all influence who ultimately pays this fee. Understanding the nuances of these negotiations is key for all parties involved in a real estate transaction.

In contrast, while the buyer and lender may have their own interests tied to title insurance, it's primarily the seller who is responsible unless an agreement dictates otherwise. The notion that the real estate agent pays for the premium is generally incorrect, as agents are typically not responsible for these fees.