Who pays for title insurance in Utah?
In most Utah home sales the seller pays for the owner's title insurance policy and the buyer pays for the lender's policy, the lender's endorsements, and the closing protection letter, with the settlement fee split. None of that is law. The Utah Real Estate Purchase Contract sets who pays, and the parties can change it.
Who pays for title insurance is a contract question, not a legal one. Utah has a strong custom, and the standard purchase contract reflects it, but every line can be negotiated.
The Utah custom, line by line
| Charge | Customarily paid by | Notes |
|---|---|---|
| Owner's title policy | Seller | Protects the buyer; the seller is delivering insurable title. |
| Lender's title policy | Buyer | Required by the buyer's lender, priced from the loan amount. |
| Lender endorsements and CPL | Buyer | Lender requirements; vary by loan program. |
| Settlement / escrow fee | Split | Each side pays its own portion in most Utah files. |
| Recording the deed and trust deed | Buyer | County recorder fees. |
| Recording payoff releases | Seller | Reconveyance of the seller's loans. |
| Real estate commissions | Seller, per listing agreement | Buyer-broker compensation is now negotiated separately in many files. |
What the REPC actually says
The Utah Real Estate Purchase Contract has a section that allocates closing costs and names the title company. When an agent writes an offer, the default language follows the custom above. Both parties initial and sign, and that allocation is what the escrow officer uses to build the settlement statement. If a buyer wants the seller to cover more, or a seller wants a cleaner net, the change goes in the contract or an addendum before closing, not at the signing table.
Situations where the split changes
- Cash purchase. There is no lender, so no lender's policy, endorsements, or CPL. The seller still customarily pays the owner's policy.
- New construction. Builder contracts are the builder's own form. Some shift the owner's policy to the buyer or route the file to a chosen title company. Read the builder's cost section before you sign.
- For sale by owner. The parties write their own contract. Using the Utah REPC keeps the customary split; a custom contract can set anything.
- Investor and seller-financed deals. Seller financing has no institutional lender, so the lender's policy, if any, is for the seller as lender and is negotiated. See our investor closings page.
- Refinance. The borrower pays for the new lender's policy at refinance rates. The owner's policy is untouched.
- Multiple-offer negotiations. Buyers sometimes offer to pay the owner's policy to strengthen an offer. It is a real cost to the buyer and a real gain to the seller.
What it means for a seller's net
Because the owner's policy is priced from the sale price, it is usually the largest title line on the seller's side. On a $500,000 sale it is around $2,500 from OnRecord's rate card, with the seller's share of settlement and the release recording on top. The seller net sheet calculator puts all of it in one column with commissions, payoffs, and tax proration.
What it means for a buyer
The buyer's title-related costs are the lender's policy, endorsements, the CPL, the buyer's share of settlement, and recording, all shown on the Loan Estimate and Closing Disclosure the lender provides. The title pricing calculator estimates them for any Utah loan amount.
Choosing the title company
The contract names the title company, and either party can propose one. Since premiums are filed with the state, the choice is really about the escrow officer: turnaround on the commitment, whether the officer answers the phone, and whether they will close where your signer is. That is the case OnRecord makes on every file: commitments typically in 2 business days, a direct line, and mobile or online closings anywhere in Utah. Send us the contract or call 385-464-2060.
Common questions
Can the buyer pay for the owner's policy?
Yes, if the contract says so. Some buyers negotiate it as part of an offer, and some sellers request it in a multiple-offer situation.
Who pays title insurance on a refinance?
The borrower pays for the new lender's policy. No owner's policy is needed on a refinance.
Who pays on a for-sale-by-owner deal?
Whatever the buyer and seller write into the contract. If they use the standard Utah REPC, the custom of seller-pays-owner's-policy usually carries over. OnRecord closes FSBO files regularly and can help both sides understand the split.
Do the parties have to use the same title company?
Not necessarily, but almost all Utah transactions close with one escrow company handling both sides, which is simpler and cheaper. The contract names the title company.
Ready to send your next order?
Get in touch and feel the difference a responsive title company makes. We confirm receipt usually within one business hour.