Who typically pays for title insurance required by a lender in a deed of trust?

In a typical real estate transaction involving a deed of trust, the borrower, also referred to as the trustor, is responsible for covering the cost of the title insurance required by the lender. Title insurance protects the lender's investment by providing coverage against potential issues related to the title of the property, such as liens, encumbrances, or defects that may arise.

It is standard practice for the borrower to pay for this insurance at closing, as it is often seen as part of the closing costs associated with securing a loan. While the lender may specify the requirement for title insurance, it is the borrower who ultimately pays for it as part of their obligations when obtaining financing. The other parties involved, such as the beneficiary of the trust or the real estate agent, typically do not have a financial responsibility for this title insurance in the context of a loan transaction.