Who typically pays for title insurance in a real estate transaction?

In a real estate transaction, it is typical for the buyer to pay for title insurance, unless there has been a specific negotiation to assign that cost to the seller. Title insurance protects the buyer from potential defects in the title that could arise after the sale. This is particularly important because the buyer is usually the party taking on the risk of ownership.

When buyers are involved in negotiations for the purchase of a property, they often include the payment of title insurance as part of their costs, which is a common industry practice. However, this can be altered based on agreements made during negotiations between the buyer and seller. In some instances, sellers may agree to pay for the title insurance as an incentive to close the deal, but this is not the default situation.

In contrast, the other options do not accurately reflect standard practices. The seller typically is not solely responsible for covering the title insurance costs without negotiation, and it would be unusual for a real estate agent to pay for title insurance, as their role is to facilitate the transaction rather than be financially responsible for closing costs. Splitting the cost equally between both parties is also not a standard practice unless mutually agreed upon. Therefore, the buyer typically bearing this cost reflects the norm in the industry.