In a real estate transaction, who is responsible for ensuring that homeowners insurance is obtained?

In real estate transactions, the responsibility for obtaining homeowners insurance typically falls on the buyer. This is because homeowners insurance protects the buyer's financial investment in the property and is often a requirement for securing a mortgage. Lenders usually mandate that buyers have an insurance policy in place before closing, as it safeguards the lender's investment in the property as well.

This obligation is critical because it not only covers the property against potential risks like fire or theft but also satisfies the lender's conditions for providing the loan. While sellers may have insurance while they own the property, the responsibility to secure a new policy falls to the buyer once the property changes hands.

In contrast, the other choices imply roles that are not typically associated with the requirement of obtaining homeowners insurance. It is not the seller’s responsibility to ensure the buyer has insurance; rather, the buyer must arrange this for their protection. Additionally, a licensee (realtor) can assist buyers in finding insurance, but they do not have the direct responsibility for obtaining it. Similarly, while lenders may have options for insurance coverage, they do not directly obtain homeowners insurance for the buyer; rather, they require proof of insurance from the buyer before finalizing the mortgage.

This understanding highlights the buyer's central