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  • Writer's pictureAttorney Jason A Greller

What is Title Insurance in Wisconsin and Why do Sellers Have to Buy a Title Policy for their Buyers?

Title insurance is a type of insurance policy that protects property owners and mortgage lenders from financial loss due to defects or issues with a property's title. In Wisconsin, as in other states, title insurance serves to safeguard the interests of both the buyer and the lender in a real estate transaction.


There are two main types of title insurance policies:

  1. Owner's Title Insurance: This policy protects the buyer's interest in the property against title defects, liens, or other issues that may not have been discovered during the title search. It typically covers the purchase price of the property and remains in effect for as long as the buyer or their heirs have an interest in the property.

  2. Lender's Title Insurance: This policy protects the lender's interest in the property and is usually required by mortgage lenders as a condition for providing a loan. It covers the outstanding loan amount and remains in effect until the loan is paid off or refinanced.

In many real estate transactions, the seller is responsible for purchasing the owner's title insurance policy for the buyer. There are a few reasons why a seller might be required to buy a title policy for the buyer:

  1. Contractual obligation: The purchase agreement may require the seller to provide an owner's title insurance policy for the buyer. This is a common practice in many real estate transactions and is often included as a standard provision in purchase agreements.

  2. Protect the buyer: Providing title insurance to the buyer helps ensure that they are protected against potential financial losses due to title defects or other issues that were not discovered during the title search. This can provide peace of mind to the buyer and help facilitate a smoother transaction.

  3. Lender requirement: If the buyer is obtaining a mortgage loan to purchase the property, the lender will likely require the buyer to have an owner's title insurance policy. By providing the policy, the seller helps ensure that the transaction can proceed and that the buyer can secure financing.

In conclusion, title insurance is an important aspect of real estate transactions in Wisconsin, as it protects both the buyer and the lender from potential financial losses due to title defects. As a seller, you may be required to purchase an owner's title insurance policy for the buyer as part of the transaction.


Please note that this information is for general informational purposes only and should not be taken as legal advice. Consult with a qualified attorney or real estate professional to discuss your specific situation and understand your legal options.

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