Who Pays for Title Insurance in Arkansas?

Who pays for title insurance in Arkansas — the buyer or the seller?

In Central Arkansas, the seller customarily pays for the owner's title insurance policy — the one that protects the buyer's ownership — while the buyer customarily pays for the lender's policy required by their mortgage company. But none of this is fixed by law. Title insurance is negotiable, and who pays for what is spelled out in your purchase contract. Expect the owner's policy to run roughly 0.27% of the sale price — about $640 to $850 on a $320,000 Maumelle home — paid once at closing.

By Amanda Galbraith | June 9, 2026

If you're selling a home in Maumelle and you've just looked at your net sheet, you may have done a double-take at one line: title insurance. Why are you, the seller, paying for insurance that protects the buyer?

It's one of the most common questions I get at the closing table, and the answer is rooted in Arkansas custom — not a rule you'll find written down anywhere. Here's exactly how it works, what title insurance actually protects you against, and whether the optional pieces are worth the money.

The two policies — and why there are two

There isn't one title insurance policy. There are two, and they protect two different people.

• Owner's policy — protects the buyer's equity stake in the home. If a problem with the title surfaces years later, this is the policy that defends the new owner's ownership.
• Lender's policy — protects the mortgage company's loan amount, not the buyer's equity. Lenders require it on virtually every financed purchase before they'll fund the loan.

A cash buyer with no mortgage has no lender's policy at all — but a smart one still buys an owner's policy, because nobody is checking the title on their behalf.

So who actually pays in Arkansas?

Here's where Arkansas surprises people.

In most of Central Arkansas, the seller pays for the owner's policy — the one that protects the buyer. That feels backward, but it's long-standing local custom. Think of it the way you'd think of a clean carfax on a used car: the seller is the one warranting that what they're handing over is free and clear.

The lender's policy is more often the buyer's expense, since it's tied to the buyer's loan. That said, you'll see Arkansas sources report it both ways, because the truth is simpler than any rule of thumb:

Title insurance is negotiable, and your purchase contract controls it. In a strong seller's market, sellers push more of these costs to the buyer. In a softer market — which is closer to where Maumelle and Little Rock sit in 2026 — sellers often absorb them to keep a deal together. What matters is what your contract says, not what's "typical."

This is also why your closing costs as a seller in Arkansas tend to land in the 8–10% range while buyers pay closer to 2–5%. The title policy is one piece of that gap. If you want the full breakdown, I walk through it in my post on what closing costs you pay when you sell your home.

What does title insurance actually protect you from?

This is the part most people skip, and it's the part that matters. Title insurance isn't insurance against something happening to the house. It's insurance against something being wrong with the ownership history of the house — a problem that already exists on the day you close, even though nobody knew about it.

Before any policy is issued, Arkansas law requires a title search covering at least the previous 30 years of ownership. That search catches most problems. Title insurance covers the ones it doesn't.

The most common claims:

• Undisclosed liens. A prior owner left an unpaid debt — a contractor's lien, a tax lien, a judgment — that attached to the property and never got cleared. Liens are the single most common title defect.
• Unknown heirs. Someone inherited and sold the home without realizing a distant relative also had a legal claim. After closing, that relative surfaces and claims ownership.
• Forgery and fraud. A deed somewhere in the chain was forged. Fraud and forgery are less common but expensive — they account for roughly 21% of the dollars title insurers pay out in claims.
• Boundary and survey conflicts. A neighbor's fence, driveway, or deck crosses a line that two different surveys disagree about.
• Errors in the public record. A clerical mistake, a misindexed document, or a release that was never recorded.

If any of these surface after you close, the title underwriter pays to defend your ownership and, where needed, pays off the claim. Without a policy, that legal bill — and potentially the loss of the home — lands on you.

Is the owner's policy worth it?

For a buyer, the owner's policy is optional. It's also one of the best values at the closing table, and here's the math behind that.

It's a one-time premium. You pay it once at closing, and the coverage lasts as long as you or your heirs own the home — there's no annual renewal like your homeowner's insurance. On a $320,000 Maumelle home, you're looking at a few hundred dollars, one time, for coverage that could be worth the entire value of the house if a hidden claim ever surfaces.

For most buyers, skipping the owner's policy to save a few hundred dollars — while taking on a $300,000+ risk — is the wrong trade. The exception is a judgment call best made with your agent and closing attorney based on the specific property and how it changed hands.

A few buyers also ask about enhanced (or "extended") owner's policies, which cover extras a standard policy doesn't — things like certain unrecorded liens, building permit violations from a prior owner, and post-closing forgery. Whether the upgrade is worth it depends on the property; an older home that's been remodeled is a better candidate than new construction.

A quick note on surveys

People often lump surveys in with title insurance, but they're separate. A survey isn't legally required to buy a home in Arkansas, though the Arkansas Real Estate Commission strongly recommends one — it's the only thing that definitively establishes your boundaries. A residential boundary survey typically runs $375 to $475. If you're buying an older home, a corner lot, or rural acreage, it's money well spent. Your title policy and your survey work together: the survey finds boundary problems before closing, and the policy backstops the ones that slip through.

What this means for you

If you're selling in Maumelle or west Little Rock, budget for the owner's policy as part of your closing costs — it's customarily yours here, and it's one of the line items a good agent factors in when pricing your home and projecting your net proceeds. If you're buying, treat the owner's policy as close to non-negotiable for the protection it buys, and ask your lender what the lender's policy will run.

The catch is that "customary" isn't the same as "required." Every contract allocates these costs differently, and in a balanced market like ours, who pays for the title policy is one of the things actually on the table during negotiation. Knowing that before you sign is leverage.

Frequently Asked Questions

Is title insurance required in Arkansas?

The lender's policy is effectively required on any financed purchase — your mortgage company won't fund the loan without it. The owner's policy is optional but strongly recommended, because it's the only thing protecting your equity from a title defect that the 30-year search missed.

How much is title insurance on a home in Central Arkansas?

The owner's policy runs roughly 0.27% of the sale price, and combined title costs typically land between 0.5% and 1.0% of the price. On a $320,000 Maumelle home, expect the owner's policy in the $640–$850 range. Pulaski County recording fees run slightly higher than rural Arkansas counties.

Do I have to pay for the buyer's title insurance as the seller?

In Central Arkansas, custom is that the seller pays for the owner's policy that protects the buyer. It's not a law, though — it's negotiable, and your purchase contract spells out who pays. In a softer market, sellers more often absorb it.

Does title insurance cover problems that happen after I buy the home?

No. Title insurance covers defects that already existed in the ownership history on the day you closed — old liens, unknown heirs, forged deeds, recording errors — even though no one knew about them. It does not cover damage to the home or issues that arise after closing.

How long does title insurance last?

The owner's policy is a one-time purchase that lasts as long as you or your heirs own the property. There are no monthly or annual premiums to keep it active.

Before you sign

Title insurance is one of those closing costs that looks like a throwaway line item until the day it saves someone's house. Who pays for it in Arkansas comes down to custom and your contract — but whether you want the owner's policy is rarely a close call.

If you're getting ready to sell in Maumelle or west Little Rock and you want a clear, honest projection of your net proceeds — title policy and every other cost included — that's exactly the kind of number I run with clients before we ever list. Download my free Central Arkansas Home Sellers Guide to see how it all fits together, or reach out anytime and I'll walk you through your numbers.

About Amanda Galbraith
Amanda Galbraith is a residential real estate agent and Broker/Owner of Arkansas Property Management & Real Estate, serving the greater Little Rock area. She specializes in helping first-time sellers navigate the process from pricing to closing, as well as investors looking to increase their portfolio. Connect with Amanda at www.amandagalbraith.ar-property.com or www.ar-property.com.