Is the buyer or seller responsible for title insurance?
Here in California, it is a matter of local custom. In Southern
California, typically the seller agrees to purchase the owners
policy for the buyer, the buyer supplies the title insurance for
the lender. In Northern California, the buyer typically pays for
both policies. It is, however, a matter that is covered in the
contract between the seller and buyer and is negotiable, as is
everything else. All closing costs can be negotiated as part of the
sales contract. Who pays for title insurance varies from state to
state based on local custom, but can be negotiated between the
buyer and seller as part of the sales contract. There are no laws
providing for either party to be required to pay. In the case where
the seller has elected to pay title expenses, the buyer needs to
make sure that the Lender has approved those fees to be paid by the
seller. Some types of mortgages require that the buyer/borrower
have a certain amount of funds available for the closing fees and
may "cap" what fees can or cannot be paid by the seller in behalf
of the buyer.
Related Q&A：
Who pays for title insurance in Kentucky？buyer or seller？Well, in Kentucky, the custom can vary a bit. But typically, it's the buyer who ends up paying for the title insurance. However, sometimes it might be negotiated between the buyer and the seller. It all depends on the terms of the deal. But most often, yeah, it's the buyer who takes on that expense. Oh, and it's important to make sure you understand all the details before finalizing the purchase. So, keep that in mind when you're dealing with real estate transactions in Kentucky!
