A buyer/borrower ** is generally responsible for the cost of a title policy insuring the buyer’s/borrower’s lender (i.e., the loan policy). In addition, the buyer/borrower would usually pay for endorsements to the loan policy.
In Colorado, sellers have historically paid the cost of insuring their buyers (i.e., the owner’s policy). Past iterations of the Colorado Real Estate Commission (“CREC”) contracts followed this tradition by including default language that the seller was responsible for the cost of the owner’s title insurance premium. However, the current CREC contracts give the parties a check-box option. Notwithstanding the change, it is still true that seller’s usually pay.
Title insurance for a given policy is a one-time fee. An owner’s policy is paid for when a property is purchased and coverage lasts until the property is sold or conveyed. A loan policy is purchased when a loan is made and coverage lasts until the loan is discharged.
** Buyer designates a party to a sale transaction. A buyer may finance a purchase with a loan or pay cash. Borrower designates a party to a loan-only (e.g., refinance) transaction.