What must a buyer expect regarding the title insurance premium in most transactions?

In most real estate transactions, the buyer is typically responsible for paying the title insurance premium. Title insurance is crucial in safeguarding the buyer against potential issues with the title of the property, such as liens or claims that could affect ownership. Since the buyer is the one receiving the title insurance benefit and is often taking on the risk after the purchase, it is standard practice for them to cover the cost.

While there may be circumstances where the seller pays this premium or the cost is shared, those situations are less common and often depend on regional practices or specific agreements made during negotiations. This payment structure helps clarify the financial responsibilities associated with the transaction, ensuring that the buyer is protected from future claims against the title. Understanding this responsibility is vital for buyers as they plan their financial commitments when purchasing a property.