Owner's title policy
Title insurance that protects the buyer's ownership if a title problem comes up later. Optional in most states, but it's the only one that helps the buyer directly.
Your Room opens on going under contract and closing, with the offer and everything before it already ticked.
Organize my saleFree to set up. Pay once when you list: $89 or $189. 7-day refund.
See how it worksWhere this comes up: closing
Part 1 of 4
Why a seller cares
It protects the buyer's ownership after closing, and in many states custom has the seller pay for it. It is one of the larger lines on a seller's settlement statement and is worth expecting.
Part 2 of 4
A simple example
A $300,000 sale in a state where the seller buys the owner's policy by custom. About $1,200 comes off your proceeds for a policy that protects the buyer.
| Who pays for it | Why |
|---|---|
| The seller, in many states | Local custom, and it is written into the standard contract |
| The buyer, in others | The other custom, equally standard |
| Negotiated | Either side can offer to cover it as part of the deal |
The owner's policy is for the buyer, and who pays for it is decided by custom before it is decided by anyone.
Part 3 of 4
What people get wrong
That the lender's policy already covers the buyer. It covers the loan; only an owner's policy covers the owner.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
In your Room, this word explains itself where it appears.
Your Room defines owner's title policy in the step you meet it in, beside the document or the date it belongs to. Free to set up, with an agent or on your own.
Organize my saleFree to set up. Pay once when you list: $89 or $189. 7-day refund.