Who Pays for Title Insurance in Los Angeles?

In Los Angeles County, the customary practice is for the seller to pay for the owner's title insurance policy and the buyer to pay for the lender's title insurance policy. However, everything in a real estate transaction is negotiable.

The owner's title insurance policy protects the buyer against title defects — liens, encumbrances, forgeries, or ownership disputes that existed before the purchase. This is a one-time premium paid at closing, and the policy remains in effect as long as the buyer (or their heirs) owns the property.

The lender's title insurance policy protects the mortgage lender's security interest in the property. It is required by virtually every lender as a condition of issuing a home loan.

Title insurance premiums in California are based on the property's sale price and are regulated by the California Department of Insurance. For a typical South Bay home, the combined cost of both policies might range from $2,000 to $6,000+, depending on the price point.

Team Goeglein provides complimentary net sheets that break down all closing costs — including title insurance — for any property in Los Angeles County. Agents can request a net sheet anytime through our tools or by contacting Matt Goeglein or Xavier de la Piedra IV directly.