In the described purchase transaction, who is responsible for paying the title insurance premium?

• A. The lender
• B. Susan
• C. The title company
• D. Henry

Answer: (D)

In Florida real estate closings, there are two title insurance policies to consider: the owner’s policy and the lender’s policy. The owner’s policy protects the buyer’s interest in the property title, and its premium is typically paid by the seller as part of the closing costs. The lender’s policy protects the lender and is usually paid by the borrower if financing is involved.

In this described transaction, Henry is the seller, so the premium for the owner’s title insurance is paid by Henry. If there were financing, the lender’s policy would be paid by the buyer, but the question points to the seller paying the title insurance premium.