In most Maryland home sales, title insurance costs are shared between the buyer and seller, though the exact split depends on local customs, negotiations, and the purchase contract. In many parts of Maryland, buyers often pay for the lender’s title insurance policy and may also pay part or all of the owner’s policy, while sellers frequently cover transfer and recordation taxes instead.
Title insurance protects against hidden ownership issues tied to a property’s history, things like unpaid liens, forged deeds, recording mistakes, or ownership disputes that may not appear during a title search. Unlike Texas, Maryland does not set title insurance premiums statewide. Rates and fees can vary between title companies, though they are still regulated by the Maryland Insurance Administration.
This guide explains who typically pays for title insurance in Maryland, what each policy covers, how much it costs in 2026, and what buyers and sellers should know before closing.
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Who Pays for Title Insurance
Who Pays for Title Insurance in Maryland?
Sellers Usually Pay Part of the Closing Costs
In Maryland, there is no single statewide rule for who pays the owner’s title insurance policy. In many transactions, buyers and sellers negotiate the costs based on local customs and market conditions.
In Maryland, sellers commonly pay part of the transfer and recordation taxes, existing liens or judgments, real estate agent commissions, and negotiated title-related closing costs.
In some Maryland counties, sellers may contribute toward the owner’s title insurance policy, especially in competitive markets where sellers want to attract buyers.
The purchase agreement determines who pays for title insurance and other settlement fees. This is negotiated during the offer process, not dictated by state law.
Buyers Usually Pay for the Lender’s Policy
If the buyer is financing the purchase with a mortgage, the lender will almost always require a lender’s title insurance policy. The buyer typically pays for this as part of their closing costs.
The lender’s policy protects the mortgage company, not the buyer. It remains active until the loan is fully paid off or refinanced.
For example: if a buyer purchases a $500,000 home with a $400,000 mortgage, the lender’s policy protects the $400,000 loan amount. An owner’s policy would protect the buyer’s full ownership interest in the $500,000 property.
Who Pays What, Quick Summary
| Policy | Who Typically Pays | Who It Protects | How Long It Lasts |
| Owner’s title insurance | Often negotiated between buyer and seller | The buyer | As long as the buyer or heirs own the home |
| Lender’s title insurance | Buyer | The mortgage lender | Until the loan is paid off |
Title Insurance Costs Are Negotiable
Who pays for title insurance in Maryland is fully negotiable and depends on the terms of the purchase contract.
How market conditions affect who pays:
- Seller’s market: Buyers may agree to pay more closing costs, including title fees, to make their offer more competitive.
- Buyer’s market: Sellers may offer credits or cover additional settlement costs to attract buyers.
- New construction: Builders may require buyers to use a preferred title company and settlement provider.
- Cash purchases: Cash buyers do not need a lender’s policy, but many still purchase an owner’s policy for protection.
Who Pays for Title Insurance by County in Maryland?
Local customs vary across Maryland counties and metropolitan areas.
| Maryland County | Common Practice |
| Montgomery County | Often negotiated between buyer and seller |
| Prince George’s County | Buyer frequently pays title-related costs |
| Baltimore County | Costs commonly shared |
| Howard County | Negotiated depending on market conditions |
| Anne Arundel County | Buyer often pays lender’s policy |
| Frederick County | Mixed practices depending on transaction type |
These are customs, not legal requirements. Always review the purchase contract carefully to confirm who is responsible for each closing cost.
What Does Each Policy Cover?
Owner’s Title Insurance
The owner’s policy protects the buyer’s ownership rights after closing. It covers problems that existed before the sale but were not discovered during the title search.
It may help cover:
- Unpaid property taxes from previous owners
- Mechanic’s liens
- Forged signatures on prior deeds
- Unknown heirs claiming ownership
- Errors in public records
- Boundary or easement disputes
- Fraud involving prior transfers
The owner’s policy lasts as long as the buyer or their heirs own the property. It is paid as a one-time premium at closing with no monthly fees.
Lender’s Title Insurance
The lender’s policy protects the mortgage lender’s financial interest in the property.
This policy does not protect the buyer personally. If a title issue arises and the buyer only has a lender’s policy, the buyer may still be responsible for legal costs and financial losses related to ownership disputes.
That is why many Maryland buyers purchase both an owner’s and lender’s policy during closing.
What Title Insurance Does Not Cover
Standard title insurance policies in Maryland generally do not cover:
- Zoning or land-use violations
- Environmental hazards
- Physical property damage
- Problems that occur after closing
- Known defects disclosed before purchase
- Government actions like eminent domain
Before closing, buyers receive a title commitment or title report listing exclusions and exceptions. Review this document carefully because it explains what the policy will and will not cover.
How Much Does Title Insurance Cost in Maryland?
Rates Are Set by the Market
Unlike Texas, Maryland does not use fixed statewide title insurance premiums. Title companies can charge different rates and settlement fees, although they must comply with Maryland insurance regulations.
Because pricing can vary, Maryland buyers should compare:
- Title insurance premiums
- Settlement or escrow fees
- Recording and wire fees
- Endorsement costs
- Customer service and closing speed
Owner’s Title Insurance Premium by Home Price
| Home Purchase Price | Estimated Owner’s Policy Premium | Estimated Rate (%) |
| $250,000 | $1,775 | 0.71% |
| $400,000 | $2,725 | 0.68% |
| $600,000 | $3,900 | 0.65% |
| $750,000 | $4,725 | 0.63% |
| $900,000 | $5,475 | 0.61% |
| $1,500,000 | $8,500 | 0.57% |
Source: Estimated values based on Maryland title insurance market averages, filed title insurance rate structures, and common owner’s policy premium practices for 2026.
What Else Is Included in Title Costs?
In Maryland, title-related closing costs may also include:
- Title search fee
- Settlement or escrow fee
- Recording fees
- Wire transfer fees
- Title endorsements
- Notary and document preparation fees
The Closing Disclosure provided before settlement will outline all charges associated with the transaction.
Ask About Simultaneous Issue Discounts
Maryland buyers purchasing both owner’s and lender’s policies may qualify for a simultaneous issue discount. This reduces the cost of issuing the second policy at the same closing.
Ask the title company early in the process whether discounts apply. It can reduce overall closing costs without reducing coverage.
Common Mistakes Buyers and Sellers Make
Skipping the owner’s policy to save money. Owner’s title insurance is optional in Maryland, but ownership disputes and hidden liens can be extremely expensive to resolve without coverage.
Assuming the lender’s policy protects the buyer. It does not. The lender’s policy only protects the mortgage company’s interest in the property.
Not reviewing the title commitment. Buyers who skip this document may overlook exceptions or exclusions that affect their ownership rights later.Choosing a title company based only on price. Lower fees do not always mean better service. Delays, communication problems, and closing errors can create major issues during settlement.
Assuming customs are the law. Maryland closing practices vary significantly by county and transaction type. Always verify the payment responsibilities in the contract before signing.
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Frequently Asked Questions
In Maryland real estate transactions, title insurance costs are typically negotiated between the buyer and seller. Buyers commonly pay for the lender’s title insurance policy associated with their mortgage loan, while the cost of the owner’s title insurance policy may be paid by the seller, split between both parties, or otherwise negotiated depending on local customs, county practices, and current market conditions.
Title insurance costs in Maryland vary based on factors such as the property’s purchase price, loan amount, location, and the title company selected. For example, an owner’s title insurance policy may cost approximately $1,200 to $1,600 for a $250,000 home and roughly $2,000 to $2,800 for a $500,000 home. Additional settlement, escrow, recording, and closing fees may also apply.
Owner’s title insurance is not legally required in Maryland, but it is strongly recommended because it helps protect homeowners from hidden title defects and ownership disputes. Lender’s title insurance is typically required by mortgage lenders before approving and funding a home loan.
An owner’s title insurance policy generally remains in effect for as long as the owner or their heirs maintain an ownership interest in the property. A lender’s title insurance policy remains active until the mortgage loan is fully paid off, refinanced, or otherwise satisfied.
Yes. Maryland does not require either the buyer or seller to pay specific title insurance costs. The allocation of title insurance premiums and related closing expenses is negotiated as part of the purchase contract.
Cash buyers are not required to purchase a lender’s title insurance policy because there is no mortgage lender involved in the transaction. However, many cash buyers still choose to purchase an owner’s title insurance policy to protect themselves against hidden title defects, ownership disputes, unpaid liens, fraud, recording errors, or other claims that may surface after closing.
Title insurance helps protect homeowners and lenders from financial losses caused by title-related issues that may have existed before the property purchase. Coverage may include unpaid liens, ownership disputes, forged deeds or signatures, recording mistakes, undisclosed heirs, fraud, easement conflicts, and boundary disputes tied to prior property transfers.
Yes. Buyers and sellers in Maryland can negotiate which title company, attorney, or settlement provider will handle the title search, escrow services, settlement, and closing process. In some new construction transactions, builders or developers may encourage buyers to use preferred providers, sometimes offering incentives in return.
A simultaneous issue discount is a reduced rate offered when both the owner’s title insurance policy and lender’s title insurance policy are issued at the same closing. Many Maryland homebuyers qualify for this discount, which can help lower overall closing costs.
Yes. Unlike states with regulated pricing structures, Maryland does not fix title insurance premiums statewide. Rates, settlement fees, and ancillary closing charges can vary among title companies, so buyers and sellers are encouraged to compare providers and review detailed fee estimates to find the best overall value.
Reilly Dzurick is a licensed real estate agent with over six years of experience and a member of the iBuyer.com Market Insights Team, covering national trends in home selling and the evolving iBuyer landscape. Her firsthand experience working with buyers and sellers gives her a practical perspective on how these platforms impact real homeowners. She holds a degree in Public Relations, Advertising, and Applied Communication.
