In a typical real estate transaction in Alabama, who pays for the title insurance?

In Alabama's real estate transactions, the payment for title insurance is generally a negotiable aspect between the buyer and seller. While there may be common practices where one party typically pays, such as buyers often covering title insurance as part of their closing costs, it is not a strict rule. Parties involved in the transaction can negotiate who is responsible for this cost, and it can vary case by case based on their agreement, local customs, and other factors that influence the transaction.

This flexibility in negotiation allows for the terms to suit both parties, and it is not predetermined by law or standard practice. Hence, understanding that the cost can fall on either the buyer or seller depending on the agreement made is essential for effective negotiation in real estate dealings. This adaptability is crucial in ensuring that both parties feel comfortable with the financial aspects of the transaction.