Brendan, our closing administrator, breaks down what title insurance is, why it matters, and who typically pays for it. Whether you’re a first-time buyer or preparing to sell, understanding your closing costs helps you move forward with confidence.

What is title insurance? Title insurance provides financial protection against unknown defects in the property’s title, like ownership disputes, unpaid liens, and errors in public records.

There are two types of title insurance:

An owner’s policy, which helps protect the buyer. (pause) And if the buyer has a mortgage, there’s a lender’s policy, which helps protect the lender.

Title insurance is important in real estate transactions because it helps protect against issues that might not be discovered until long after the closing—even years later.

Who pays for title insurance? In the Chicago area, the seller typically pays for the owner’s policy, and the buyer pays for the lender’s policy. Both are one-time costs that can be paid at closing.

I’m Brenda McNicholas, closing administrator for the law firm Michael H. Wasserman, P.C. We handle real estate closings in the Chicago area.

To learn more about buying and selling real estate in Chicagoland, check out our website at mhwasserman.com

We’re here to help you close with confidence.

To learn more about buying and selling real estate in the Chicago area, schedule a call with one of our attorneys, Mike or John.