Why is title insurance necessary when refinancing?
The policy purchased on a refinance covers the new lender not the homeowner. Who Pays For Title Insurance? Customarily, the seller pays for the title insurance premium that protects the buyer’s title to the property. However, the buyer and the seller may negotiate who will bear the cost. If the buyer is obtaining a loan to purchase the property, the lending institution will usually require a title insurance policy to protect their collateral interest in the property. The buyer is responsible to pay for the lender’s title policy as one of the costs of borrowing the money, unless the seller has agreed to pay that portion of the buyer’s closing costs.
