Who Pays for Title Insurance in Pennsylvania?

One of the most common questions homebuyers and sellers ask during a real estate transaction is: Who pays for title insurance in Pennsylvania? The answer depends on local custom, the type of policy, and the terms negotiated in the sales agreement.

In Pennsylvania, there are typically two types of title insurance policies involved in a real estate transaction: lender’s title insurance and owner’s title insurance. Lender’s title insurance is required when a buyer uses a mortgage, while owner’s title insurance is optional but highly recommended to protect the buyer’s ownership rights.

By long-standing custom in most parts of Pennsylvania, the buyer pays for both the lender’s and owner’s title insurance policies. This is considered standard practice, though it is not mandated by law. Because of this custom, many purchase agreements are written with the expectation that the buyer will cover these costs.

That said, title insurance costs are always negotiable. In some transactions, especially in competitive markets or as part of seller concessions, the seller may agree to pay for the owner’s title insurance policy. In refinances, the homeowner pays for the lender’s title insurance policy, since there is no change in ownership.

It’s also important to understand that title insurance is a one-time premium paid at closing, not an ongoing monthly expense. Once purchased, the owner’s policy remains in effect for as long as the buyer owns the property, providing long-term protection against hidden title defects.

Because customs can vary by county and transaction type, working with a knowledgeable title insurance company is essential. We help clients understand their options, explain local practices, and ensure there are no surprises at closing, so you can move forward with confidence in your investment.