Escrow & Title

A Washington buyer's title insurance policy (owner's policy) covers the buyer for losses from title defects. Who pays for the owner's title insurance in a typical Washington transaction?

AThe buyer always pays
BThe seller typically pays for the owner's title insurance policy as part of seller's customary closing costs✓ Correct
CThe lender pays for both title policies
DIt is always split equally between buyer and seller

Explanation

In Washington, it is the customary practice (though negotiable) for the seller to pay for the owner's title insurance policy as part of their closing costs, while the buyer typically pays for the lender's (ALTA) title insurance policy.

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