What is TITLE INSURANCE, and Why Do I Have to Pay For It?


So this weekend I got a call from one of my sellers who saw the closing statement and was shocked that they had to pay for title insurance.

Now, if you’re an agent or an experienced buyer or seller, you may be thinking. “Justin, that’s because you didn’t do your job and explain it correctly”….to that I say, WHOA, I did! Because she understood the purpose of title insurance. Which is a huge win for me considering that most buyers and seller really have no idea what they are paying for!

So I explained that the purpose of title insurance is a form of indemnity insurance that insures against financial loss from defects in title to real property and from the invalidity or unenforceability of mortgage loans. OR in layman’s terms….insures against other people claiming that they own your home or property.

For the most part, this is a SELLER’s EXPENSE. However, In just about every state, the buyer must pay for title insurance expenses related to their loan with their lender.

Now, I know someone is going to come along and make the claim that “IT’S a BUYER’S EXPENSE”…..okay, but the truth is that everything is negotiable in Real Estate. Buyer and Seller expenses do exist, and I for one think this is a great seller’s expense.

You’ve Got Questions, I’ve Got Answers! Send it!

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