Who typically pays for the seller's title insurance policy at closing?

In real estate transactions, it is customary for the seller to pay for the seller's title insurance policy at closing. This practice is rooted in the understanding that the seller benefits from this policy by assuring the buyer that the title is clear of any liens or disputes. By providing this coverage, the seller enhances the marketability of their property and fulfills a key service to the buyer, who is looking to purchase a property without any hidden legal issues.

Title insurance protects the buyer from potential claims against the title that could arise after the sale, but it is generally the seller's responsibility to provide this protection during the transaction. This standard helps streamline the closing process and sets clear expectations for both parties involved.

It's worth noting that while the seller covers the cost of their policy, the buyer may be responsible for their own title insurance policy, which protects their interests in the property going forward. The specifics of who pays for which title insurance policy can vary based on local customs or negotiations between the buyer and seller, but the general practice is for the seller to pay for the seller's title insurance at closing.