Who typically pays for title insurance in a transaction?

In a real estate transaction, the buyer typically pays for title insurance. Title insurance is important because it protects the buyer—and any lender—against potential issues with the property's title, such as undiscovered claims or liens that could arise after the sale is finalized.

The rationale behind the buyer covering the cost of title insurance is that it is ultimately a safeguard for their investment in the property. By securing this type of insurance, the buyer ensures that they are protected against any future legal issues regarding the ownership of the property that could lead to financial loss.

While sellers might cover certain closing costs or provide title insurance for specific types of deals or under certain local customs, the standard practice is for the buyer to purchase the title insurance policy as part of protecting their own interests. This is vital in maintaining clarity and security in property ownership and is a common expectation in the Massachusetts real estate market and many other locations.