Why agents care
Who pays for the owner's policy varies by local custom and contract, and title costs are a large line on both buyer and seller closing cost estimates. Agents who know local practice set accurate expectations.
Glossary term
Title insurance
Title insurance protects against losses from title defects that existed before the purchase, such as undisclosed liens, errors in public records or forged documents. The lender's policy protects the lender and is usually required with a mortgage. The owner's policy protects the buyer's equity. Premiums are typically paid once at closing.
Example
Example: on a $425,000 purchase, title premiums might total a few thousand dollars depending on the state's rate filings and who pays which policy.
Pairs well with
Calculators that use this term
Related terms
Questions by topic
Title insurance: common questions
Is owner's title insurance required?
Not usually. The lender's policy is required with a mortgage. The owner's policy is optional but protects the buyer.
Why do title costs vary so much by state?
Rates are regulated or customary at the state level, and who pays differs by local practice.
Put these numbers in front of your visitors
Calculators with built-in definitions, free on the Agent plan.