Title insurance is a one-time protection you purchase at closing. Unlike other types of insurance that cover future events, title insurance protects you against past issues that could threaten your ownership rights.
During the closing process, a title search is performed to uncover any potential problems with the property's history. While most issues can be resolved before you take ownership, some risks are hidden and may not show up in public records. Title insurance ensures that if one of these issues arises later, you won't face the financial or legal burden alone.
Even with a thorough title search, not every risk can be discovered. Title insurance provides peace of mind that your property rights are secure and that you won't face unexpected legal or finanical challenges tied to the past. It's a small, one-time cost that safeguards one of your most important assets—your home.
A title search reviews public records to confirm the seller has clear ownership. It checks for mortgages, judgments, unpaid taxes, restrictions or easements. Any issues must be resolved before closing to ensure you receive a clear title.
When you purchase real estate, you expect to receive clear ownershp of the property. However, even the most routine transactions can uncover hidden title problems.
Title insurance can cover:
- Ownership claims from unknown heirs or previous owners: If a previous owner passes away without a clear will, unknown heirs may later come forward to claim an interest in the property.
- Liens or unpaid debts attached to the property: Prior owners may have left behind unpaid taxes, contractor bills or judgments that are still attached to the property.
- Fraud or forgery in prior deeds or transfers: Fake signatures or fraudulent transfers in a property's history can put your ownership rights at risk.
- Clerical or recording errors in public records: Clerical mistakes in deeds, mortgages or surveys can create confusion over ownership or boundaries.
- Easements or restrictions: Existing rights of way, utility easements or restrictive covenants may limit how you can use your property.
- Boundary disputes: Inaccurate surveys or conflicting property descriptions can lead to disagreements with neighbors.
In North Carolina, title insurance is a one-time premium paid at closing. The cost depends on the property's purchase price or loan amount and is regulated by the state, so rates are consistent across providers.
- A lender's policy is required by most lenders and protects the bank's investment in your property.
- An owner's policy is optional but highly recommended and protects your ownership interest for as long as you own the home.
Yes. While lenders require insurance to protect their investment, cash buyers are especially vulnerable without coverage. An Owner's Policy ensures your ownership is protected against unexpected title claims.
A Standard Owner's Policy protects you against title problems that exist before you buy your property, including:
- Claims of ownership from unknown heirs
- Fraud or forgery in prior deeds
- Errors or omissions in public records
- Outstanding liens or judgments
- Lack of access to the property
An Enhanced Owner's Policy goes beyond the standard coverage by providing protection against certain risks that may arise after you take ownership, including:
- Building permit violations
- Subdivision law violations
- Encroachments discovered after purchase
- Restictive covenant violations
- Certain zoning issues
- Coverage that increases with the property's market value
If you want basic protection at the lowest cost, the ALTA Standard Owner's Policy is a solid option. If you want broader coverage and protection against future risks, the Enhanced Owner's Policy provides greater peace of mind.
- TItle search and examination
- Coordination of all parties
- Preparation and review of settlement statements
- Execution of documents in accordance with requirements
- Escrow services for holding funds
- Collection and disbursement of proceeds
- Payment of taxes, fees and obligations
- Secure wire transfers with fraud-prevention safeguards
- Detailed accounting records for transparency
Commercial real estate transactions often involve complex contracts, multiple parties and large financial investments. We provide comprehensive settlement and disbursement services to ensure your commercial closing is handled with precision, transparency and compliance. We're experienced in handling complex, high-value transactions and are a trusted partner ensuring proper and timely distribution. We have local knowledge in our markets, and we're committed to accuracy, efficiency and security.