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dollylee9 · Joined: 19 Jul 2009 Posts: 63 -0.14 Dollars($)

Who pays for title insurance - is it the buyer or the seller?

jenkin7 · Posted: Mon Jul 20, 2009 12:58 am Post subject:

Hi dollylee,

There is no specific rule as to who pays for the title insurance policy. Since the policy is supposed to help the buyer and the lender, it is the buyer who pays for it. But in certain areas, the seller also pays for it. This is entirely negotiable and as a buyer, you can also split the costs of the title insurance with the seller.

gmakerley · Posted: Mon Jul 20, 2009 8:15 am Post subject:

title insurance is a closing cost - therefore, it is anticipated that a buyer will pay for its issuance. however, since seller concessions for closing costs are allowed on every product, it is certainly possible that a seller might pay for the cost of the title insurance. frankly, whether the seller pays for the title insurance or some other variety of closing costs ought to have no bearing on a deal; that concession can be used to pay a variety of costs.

willimartha · Joined: 27 Jun 2009 Posts: 57 -0.11 Dollars($)

Whether the buyer or seller pays for title insurance depends on the county, not even on the state. Usually, though, the seller and buyer may split owner's title insurance premium and the buyer pays for lender's title policy. In some areas the buyer pays both. However, often this charge is open to negotiation despite the local custom.

willimartha · Joined: 27 Jun 2009 Posts: 57 -0.11 Dollars($)

I will lke to add-

Some closing attorneys would use the title company they have business relationship with and split title charges between seller and buyer. If anyone would suggest using another title company, they are usually expected to cover title insurance fees.

Owner's policy is also called buyer's title insurance. The seller is typically not required to pay this cost. It is often assumed that the seller would cover title fees, but if they explicitly state that they don't want to and the buyer agrees on that kind of offer the seller doesn't have to contribute to title related charges.

In fact, title charges as many closing costs on a real estate transaction are negotiable. Homebuyers should be aware of that fact.

gmakerley · Posted: Mon Jul 20, 2009 12:04 pm Post subject:

i am unaware of any need for a seller to pay for title insurance that will benefit only a lender, and i am unaware of any need for a seller to pay for title insurance that would only benefit a borrower. it makes no sense that a seller would be required to pay for either. i addressed the possibility that a seller concession could be used for the payment of the premium in the process of closing a loan.

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