Who typically pays for the title insurance premium that insures the lender?

In real estate transactions, the common practice is for the buyer to pay for the title insurance premium that insures the lender. This form of title insurance is known as lender's title insurance, and it protects the lender's investment in the property against any potential disputes over the title.

When a buyer secures a mortgage to finance their home purchase, the lender typically requires this insurance to safeguard against various risks, such as claims to the property or other issues that could affect the lender’s ability to collect on the loan.

When the buyer pays this premium, it often signifies their acknowledgment of the responsibility associated with the property. This practice, while not legally mandated, is widely adopted in many transactions, making it the prevailing standard in the industry.

It is worth noting that there might be variations in specific markets or agreements, where negotiations between parties can lead to different arrangements. However, as a general rule, it is the buyer who usually bears this cost in a standard transaction.