In a real estate transaction, who typically pays for the title search?

In real estate transactions, the responsibility for paying for the title search can vary depending on local customs and practices. This flexibility exists because different regions may have established specific norms regarding who pays for certain closing costs, including the title search.

In some areas, it is common for the buyer to cover this expense as they have a vested interest in ensuring that the property title is clear of liens and encumbrances. In other places, the seller may agree to pay for the title search as part of their contribution to closing costs to enhance the attractiveness of the property to potential buyers. Additionally, in transactions involving financing, the mortgage lender may have expectations or requirements regarding title insurance, which can influence who pays for the title search.

Understanding this variability is crucial for real estate professionals and consumers alike, as it emphasizes the importance of knowing local practices and discussing responsibilities early in the transaction process.