Which party is typically responsible for paying the title insurance in a real estate transaction?

In a real estate transaction, the responsibility for paying for title insurance usually falls on the seller, although this can vary based on local customs and the negotiations between the buyer and the seller. Title insurance protects against potential issues related to the title of the property, such as liens or disputes over ownership. It is a crucial aspect of closing a real estate deal, as it provides assurance to the buyer that they are receiving clear and marketable title to the property.

In Texas, while it is common for the seller to pay for the owner's title policy, the buyer may negotiate this responsibility as part of the offer or counteroffer process. In many local real estate markets, the custom favors the seller covering this cost to ensure a smooth transfer of ownership without encumbrances. This convention helps facilitate trust and transparency in property transactions.

Determining the party responsible for title insurance can depend on the terms outlined in the sales contract and prevailing local practices, but generally, the seller is the party expected to bear this expense.