Who Pays for Title Insurance?

One of the most common questions in a real estate closing is: who pays for title insurance? The answer depends on whether you’re talking about the owner’s policy or the lender’s policy, and local customs in your state or county.

🔎 Owner’s Policy vs Lender’s Policy

  • Owner’s Title Insurance — protects the buyer’s ownership rights.
  • Lender’s Title Insurance — protects the mortgage lender’s interest.
  • Both policies are usually issued at closing, but who pays can vary widely.

✅ Who Usually Pays?

  • Owner’s Policy — often paid by the seller (but varies by state).
  • Lender’s Policy — almost always paid by the buyer.
  • Customs Differ — some counties split costs between both sides.

⏱ State-by-State Variations

  • Florida — sellers often pay for the owner’s policy.
  • Texas — seller typically pays, but customs vary by county.
  • California — payment can differ depending on the region.

Always confirm with your title company or closing attorney before finalizing your contract.

📍 Why FSBO Sellers Should Know

If you’re listing FSBO, title insurance is one of the few costs at closing that can’t be avoided. It’s a normal part of the process, not a Realtor commission, so your flat fee MLS savings remain untouched.

🏆 How Brokerless Helps You Save

  • No hidden closing fees — title insurance is separate from commission.
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❓ Title Insurance FAQs

Who pays for owner’s title insurance?

In many states the seller pays, but some regions shift this cost to the buyer. Always confirm with your title company.

Who pays for lender’s title insurance?

Almost always the buyer, since it protects the lender’s interest in the loan.

Can costs be negotiated?

Yes. Buyers and sellers can negotiate who covers the owner’s policy. This is usually handled in the purchase agreement.