Buying or selling? We've got your title covered.
Everything you need to know about title insurance — what it is, what it covers, how it works, and why it protects one of the biggest investments you'll ever make.
Buyers & sellers
However you're moving, we've got the title side handled.
Buyers
When purchasing a home, it's essential to verify the seller's rightful ownership and ensure there are no unresolved issues that could impede the transfer of the title to you. Problems with the title can impose limitations on property usage and potentially lead to financial losses — that's where title insurance becomes invaluable, and Valiant Title is here to assist. We conduct thorough title searches to confirm your ownership is clear of any encumbrances.
The cost of title insurance is paid only once, with no renewal premiums or expiration dates. This protection endures for as long as you, or your successors, hold an interest in the property — ensuring long-term security.
Order titleSellers
Selling your house? Valiant Title can help. We'll assist you in finding an experienced closing attorney and satisfy any liens. We promise a smooth closing, great communication, and amazing service — whether you're listing for sale by owner or working with a real estate agent.
- Timely and accurate title commitments
- Experienced and knowledgeable team
- Able to resolve complex title issues
Title insurance 101
What is title insurance and why do I need it?
When you take out a mortgage, one part of your closing costs is title insurance. The premium is a one-time charge, and the lender's policy protects the lender. You can also purchase owner's title insurance to protect yourself, though it's not required.
Title insurance is a policy that covers third-party claims on a property that don't show up in the initial title search and arise after a real estate closing. A third party is someone other than the property's owner — such as a construction company that wasn't paid for its work under a previous owner. "Title" refers to someone's legal ownership of the property.
A title claim could arise at any time, even after you've owned the property with no problems for years. Someone else might have ownership rights you don't know about when you make an offer. Even the current owner might not be aware that someone else has a claim — in the case of an overlooked heir, even the person with those rights might not know they have them.
Before your home loan closes, your mortgage lender will order a title search from a title company. The title company searches public records — deeds, mortgages, divorce decrees, court judgments, tax records and child-support orders — to find any defects that could affect the lender's or buyer's property rights, such as:
Liens
Placed on a property by a contractor, tax authority or lender who hasn't been paid. You don't want to get stuck paying a previous owner's unpaid bills.
Easements
Someone else's right to use your property even though you own it — for example, utility lines in your backyard — which could limit how you use the property.
Encumbrances
Include liens and easements, but also zoning laws, restrictive covenants imposed by HOAs, and leaseholder rights.
If the title search reveals any problems (also called "clouds"), the title company will try to resolve them. In some cases your agent will work with the seller's agent to get the seller to fix the issue; in others, the problem may be significant enough to derail the sale.
Coverage
What title insurance covers — and what it doesn't.
A policy covers underlying issues with a property's title that might have been missed before you bought the home. It comes in handy if the public-record search failed to catch any liens or ownership disputes.
What it covers
- Property survey errors
- Boundary disputes
- Errors on the property deed
- Building-code violations by a previous owner
- Conflicting wills
- Claims by an ex-spouse who didn't sign off on the sale
- Forged documents
- Liens from contractors, taxing entities or previous lenders
- Encroachments
- Improperly recorded documents
What it does not cover
Title insurance doesn't protect against every possible infringement on your property rights. In particular, it doesn't cover title problems caused by your own actions after you buy, such as:
- Failing to pay the company that replaced your roof
- Failing to pay your property taxes
- Eminent domain — when a government seizes private property for a public purpose
In short, it doesn't protect against issues newly created after you buy. It protects against issues that existed before — and might have affected your decision to purchase, had you known.
Cost & coverage
Who pays, how much, and which coverage is right.
Standard vs. expanded coverage — which is right for me?
Homeowners can choose between standard and expanded coverage. A standard owner's policy covers most common defects; an expanded (or "enhanced") policy broadens protection against certain additional risks — like post-policy forgery, identity theft and certain building-permit issues — and may increase coverage as your home appreciates. We'll walk through the options and recommend what fits your situation.
How much does title insurance cost?
It's a one-time, up-front fee — not an ongoing expense. An owner's policy is based on the home's purchase price, while a lender's policy is based on the loan amount. Both together usually cost about 0.5%–1.0% of the purchase price ($1,500–$3,000 on a $300,000 home, per ALTA). In NC and SC the price is the same at every title company — so make sure you're using a reputable one with experienced underwriters. Estimate your cost with the rate calculator.
Who pays for title insurance?
The buyer pays for the lender's policy as part of their closing costs. Either the buyer or seller can pay for the owner's policy on the buyer's behalf — local real estate custom often determines who pays. Buying an owner's policy at the same time as a lender's policy can reduce the owner's cost through a "simultaneous issue charge."
Why should I buy an owner's policy?
An owner's policy can cover the cost of paying off a previously undiscovered lien or defending a lawsuit filed by someone claiming a right to the property. It can provide a cash settlement to a new owner who unwittingly purchases a property with a forged deed, and it protects your ability to sell the home one day if a problem turns up in a later title search.
Protect your investment.
Buying or selling in the Carolinas? We'll make your closing easy — with clear title, great communication, and dependable protection you can count on.