Which party typically pays for title insurance in a real estate transaction?

In a real estate transaction, it is generally the buyer who pays for title insurance. This insurance protects the buyer from any potential claims against the property due to issues with the title that may not have been discovered during the closing process. These issues can include undisclosed liens, claims from previous owners, or errors in the public record. By securing title insurance, the buyer ensures that they have a clear and marketable title to the property, safeguarding their investment.

Though the seller, real estate agents, and lenders can be involved in the transaction, their responsibilities regarding title insurance can vary based on local customs and negotiations. However, it is most common in many areas for the buyer to bear this cost, emphasizing the buyer's need to protect their interests in the property being purchased.