Who typically pays the title insurance premium?

The buyer of the property typically pays the title insurance premium because they are the ones directly securing the title insurance policy that protects their interests in the property. Title insurance is designed to safeguard the buyer from potential disputes over the title, such as claims of ownership or undisclosed liens, that could arise after the sale is completed. As the one acquiring the title, the buyer bears the responsibility for securing this protection, which is part of their due diligence in ensuring a clear title to the property.

While there can be variations depending on local customs or negotiations between parties, the standard practice is for the buyer to cover the cost of the title insurance premium. This practice ensures that the buyer has the necessary security against title defects or claims that could potentially jeopardize their ownership rights.