In Connecticut, the payment for owner’s title insurance is typically negotiable between the buyer and seller. However, in most cases, the seller pays for the owner’s title insurance policy as a way to make the property more attractive to potential buyers and to ensure a smoother closing process.
The owner’s title insurance policy protects the buyer against potential financial losses arising from title defects or encumbrances on the property. These defects or encumbrances could include liens, easements, or disputes over property ownership. Title insurance provides peace of mind to the buyer by ensuring that they have clear and unencumbered ownership of the property.
While the seller typically pays for the owner’s title insurance, the buyer may also choose to purchase it separately. This may be beneficial if the buyer has concerns about the property’s title history or if they want additional protection against potential title defects.
Here’s a summary of who pays for owner’s title insurance in Connecticut:
- Typical scenario: Seller pays for the owner’s title insurance.
- Negotiable option: Buyer and seller can negotiate who pays for the owner’s title insurance.
- Buyer’s option: Buyer can choose to purchase the owner’s title insurance separately, even if the seller is not paying for it.
It’s important to discuss the payment for owner’s title insurance with the other party involved in the real estate transaction to ensure a clear understanding and avoid any surprises at closing.