Who pays title insurance in Arizona? On a typical resale, the seller pays for the buyer's owner's policy and the buyer pays for the lender's policy. That's the default in the Arizona REALTORS Residential Resale Real Estate Purchase Contract, which provides the buyer an ALTA Homeowner's Title Insurance Policy at the seller's expense (or a Standard Owner's policy if the homeowner's version isn't available).
Can that change? Yes. It's a contract term, so buyers and sellers can negotiate it. If the buyer wants extended coverage beyond the standard policy, the contract puts that cost on the buyer. Escrow fees, by contrast, are split equally by default.
Data note: Contract terms come from the Arizona REALTORS resale purchase contract (sample, November 2025). Coverage descriptions come from the NAIC Consumer Guide to Title Insurance (2026). Premium amounts are not quoted because they depend on price, loan and insurer. No market statistics are included in this post.
Title Insurance at a Glance in Arizona
- Owner's policy: typically paid by the seller for the buyer
- Lender's policy: paid by the buyer when financing
- Extended coverage: paid by the buyer if requested
- Escrow fees: split equally under the standard contract
- When you pay: once, at closing
- Buyer's review window: 5 days after receiving the title commitment to object to title issues
Owner's Policy vs. Lender's Policy
Owner's Title Insurance
According to the NAIC:
- Protects you for the price you paid, plus legal costs if a covered past problem surfaces
- Lasts as long as you have a legal right to own the property
- Enhanced owner's policies cover extra risks and cost about 20% more than a standard owner's policy
Lender's Title Insurance
- Protects the lender, for the amount of the loan
- Decreases as you pay down the mortgage and ends when the loan is paid off
- On a refinance, you buy a new lender's policy, but generally don't need a new owner's policy
What Title Insurance Covers, and What It Doesn't
Typically Covered (Past Problems)
- Unpaid liens from a prior owner
- Forged, lost or incorrectly filed deeds and documents
- Claims from missing heirs
- Property access issues tied to the title
Typically Not Covered
- Problems that start after you buy, such as a neighbor building a fence on your line, or a contractor filing a lien for work you ordered
- Issues listed as exceptions in your policy, which the NAIC says may include an ongoing boundary dispute or an undisclosed easement
Read the title commitment and its exceptions during your review window. That's when questions are easiest to resolve.
How Arizona Regulates Title Insurance Rates
- Title insurers must file their schedules of fees with the Arizona Department of Insurance and Financial Institutions (A.R.S. 20-376)
- Filings must be on file at least 30 days before they take effect
- Rates may not be excessive, inadequate or unfairly discriminatory (A.R.S. 20-375)
- Insurers can't quote a single combined rate for title insurance and escrow services
That's why "title" and "escrow" appear as separate lines on your closing statement.
How It Plays Out at Closing
For Sellers
- The owner's policy premium appears on the seller's side of the settlement statement
- Add it to your net sheet early. See the cost to sell a house in Arizona
For Buyers
- Budget for the lender's policy and half the escrow fee
- Ask whether extended or enhanced coverage makes sense for your property
- Review the title commitment within 5 days of receiving it
For VA Buyers
VA.gov notes buyers and sellers can negotiate who pays title insurance costs on VA-financed purchases.
Wondering how title fits into the timeline? See how long it takes to close on a house in Arizona.
Questions to Ask Your Title Company
- Which policy am I getting: ALTA Homeowner's, Standard Owner's or enhanced?
- What exceptions are listed in my title commitment, and what do they mean?
- Is there a closing protection letter? The standard Arizona contract calls for one
- What will extended coverage add to my policy, and to my costs?
- How do I verify wiring instructions before sending funds?
Your title officer answers these questions every day, so ask early.
“Buyers are often surprised to hear the seller pays for their owner's policy here. I tell both sides the same thing: read the title commitment, especially the exceptions. Five minutes with the title officer during the review window can save you a real headache after closing.”
— Elizabeth Vijan, Tackett Team, eXp Realty
FAQ: Title Insurance in Arizona
Who pays title insurance in Arizona?
Seller: owner's policy. Buyer: lender's policy.
Is owner's title insurance optional?
Most Arizona resale buyers receive one at the seller's expense.
How much is title insurance in Arizona?
It varies by price, loan and insurer. Paid once, at closing.
What does title insurance cover?
Past problems like liens, forgeries and missing heirs.
Buying or Selling Soon?
I'll get you a clear estimate of your closing costs, title and escrow included, so you know your numbers before you sign.
Elizabeth Vijan | Tackett Team, eXp Realty
Scottsdale & Phoenix Real Estate
Let's Talk · Call or text 602-885-7752
Sources: Arizona REALTORS: Residential Resale Purchase Contract (sample) · NAIC: Consumer Guide to Title Insurance · A.R.S. 20-375: Title insurance rate standards · A.R.S. 20-376: Filing of title insurance rates · VA.gov: Funding fee and closing costs
Disclaimer: General information, not legal advice. Contract terms are negotiable and coverage depends on your policy. Information deemed reliable but not guaranteed. Equal Housing Opportunity.
Tackett Team, eXp Realty · Get in touch