Which party must maintain property insurance until the closing?

The seller is responsible for maintaining property insurance until the closing in a real estate transaction. This obligation typically falls on the seller because they retain ownership of the property until the transaction is finalized. The rationale behind this requirement is to protect the property's value and ensure that it is insured against potential risks such as damage from fire, theft, or other hazards during the interim period leading up to the closing.

With the seller being the owner until the transfer of title, they are in the best position to manage the risks associated with the property. This also provides peace of mind for the buyer, knowing that any liabilities or unexpected damages won't fall on them until they officially take possession of the property.

In contrast, while buyers often secure their own insurance policies once the transaction is completed, their coverage does not typically commence until the closing date. Real estate agents and banks are involved in facilitating the transaction but do not hold the responsibility for property insurance maintenance during the period leading up to closing.