Who Pays for Title Insurance in Los Angeles? (2026 Guide)

Title insurance in a California home sale involves two policies: an owner's policy that protects the buyer, and a lender's policy that protects the mortgage lender. In Los Angeles County, the long-standing custom is for the seller to pay the owner's policy premium and for the buyer to pay the lender's policy premium. This custom is not law — it is negotiable through the purchase contract.

The owner's title insurance policy insures the buyer's equity and ownership rights for as long as the buyer or heirs own the property. It covers hidden defects such as forged deeds, undisclosed heirs, recording errors, unpaid tax liens, and easements that were not discovered in the title search. Because the seller is the party warranting clean title, the seller typically pays for this protection.

The lender's title insurance policy, sometimes called a loan policy, protects only the lender's interest in the property. It is almost always required when the buyer takes out a mortgage, and the buyer pays for it because it is a cost of obtaining the loan. The premium is based on the loan amount.

California title insurance rates are filed with the California Department of Insurance and calculated on a per-thousand basis. For a $1,500,000 South Bay sale with a $1,000,000 loan, the combined owner and lender premiums typically fall between $3,000 and $5,000. The exact amount depends on the sale price, loan amount, and whether a reissue or refinance credit applies.

In a seller's market, buyers sometimes waive the seller-paid custom and pay the owner's policy to make their offer more attractive. In a buyer's market, sellers may offer to pay both policies. Whichever side pays, the title company issues both policies at closing and the premium appears on the closing statement.

Team Goeglein at Fidelity National Title prepares complimentary net sheets for any address in Los Angeles County. The net sheet shows the estimated owner's policy, lender's policy, transfer tax, escrow fees, and recording costs so agents and clients can see the exact split before opening escrow. Request one from Matt Goeglein at 310-293-0784 or Xavier "Xavi" de la Piedra IV at 562-217-9933.