The Real Estate Agent’s Guide to Title Commitment in North Carolina

A man in a business suit talking to his clients about a stack of papers on the desk in front of him.

Real estate can be tricky to understand—especially if you’re a first-time homebuyer. It gets even more confusing when you throw in terminology like escrow, due diligence, and title insurance. As a real estate agent, it’s your duty to make sure your client’s know exactly what they’re doing, and what you’re doing, to help them find success. And nothing can make or break a successful real estate transaction quite like title insurance.

Title insurance protects the new homeowner and their right to the property’s title. Before you get your title insurance policy, however, your title insurance agency will issue you a title commitment.

Like title insurance, the title commitment can be difficult to understand because it has a number of different moving parts. We’re here to set the record straight and break down everything you need to know about title commitments.

The Title Commitment Comes Before Closing

Think of the title commitment as a preliminary document to obtaining your title insurance policy. The title insurance company will send it out before the closing and it includes all the terms and conditions that must be met before a title insurance policy can be issued.

Those conditions differ by state, which is why it’s so important to partner with a title insurance agency that understands North Carolina title insurance law.

In addition, the title commitment states all the careful details about the intended property and determines whether there will be any limitations in the title insurance policy. It’s important to remember that a title commitment is not the same as a title insurance policy: it does not yet protect your investment.

The ABC (and D)’s of Title Commitments

Title commitments are comprised of four distinct sections, also known as “schedules.” Each schedule outlines and sets conditions for different aspects of the title insurance policy. The four schedules are:

Actual Facts

Schedule A provides the most basic information regarding the transaction. Also known as the actual facts of the transaction, this section includes:

  • Amount of money for the full policy coverage
    • Owner’s coverage and lender’s coverage
  • Names of the buyer(s)
  • Current recorded property owners
  • Sales price
  • Legal description of the property
  • Effective date of coverage

Buyer Notification

Typically, Schedule B covers the exceptions: the aspects of the property purchase that won’t be covered by the title insurance policy. That includes:

  • Easements
  • Setback lines
  • Taxes
  • Survey matters

Clear to Close

Schedule C includes the items relating to the property that must be resolved before closing—and before the title insurance policy can be issued. They include:

  • Mortgage to be paid off at time of closing
  • Abstract of judgments
  • Any unpaid labor liens
  • Unpaid taxes liens
  • Deed of trust to be paid off or released
  • Any other unpaid liens

Disclosure

Essentially, this list is all the relevant parties involved in the title insurance process that will benefit from the premium. Those parties include:

  • Underwriters
  • Title insurance agents
  • Attorneys

Have Questions About Your Title Commitment?

Here at Tryon Title, we’re committed to helping our North Carolina real estate agents better assist their clients. When it comes to buying a home, having a thorough title insurance policy is paramount to a successful transaction.

Need a title insurance agency to refer your clients to? We’re here to help. Give us a call today to learn more.

Why Finding the Right Title Insurance Agency in North Carolina is Crucial to Your Sale

A man in a blue suit giving a thumbs up.

One of the trickiest parts of buying a new property is ensuring that your title is clean and clear. Unlike rentals, where you have very detailed records of everyone who’s ever rented a property, title records can quickly become murky.

Oftentimes, the wrong information is accidentally recorded onto a title—leading to legal and ownership issues later on down the line. The most effective way to ensure you enter into your new period of homeownership with a clean title is working with a reputable title insurance agency in North Carolina.

The Right Title Insurance Agency in North Carolina Will Make or Break Your Sale

While purchasing title insurance is crucial to the success of your sale, you can’t work with just anyone. If you’re a real estate agent, your clients are going to come to you for advice and recommendations. It’s important to have a relationship with a stellar title insurance agency that you trust.

The right agency will have the systems, processes, and technology in place to guarantee a straightforward and successful transaction. Here at Tryon Title, we pride ourselves on our quick turnaround times, careful attention to detail, and accuracy in tracking down title records and histories.

Here are the three main benefits a reputable title insurance agency will bring to your transaction.

Superior Customer Service

Your title insurance agency should always provide clear and direct communication and a secure way to communicate. Always check their reviews online and don’t be afraid to ask for references!

Furthermore, a good title insurance agency will make themselves available to you for questions and have plenty of online resources about title insurance on their website.

Fast Turnaround Times

A good agency will have professional technology in place, and a staff of excellent agents and underwriters, to ensure fast turnaround times. Additionally, they will assist you in cultivating a fast and efficient closing experience for your clients.

Greater Accuracy

Writing a title insurance policy, and researching the property’s title history, is one of the most important parts of the closing transaction. You’ll want to make sure you choose an agency that has a lot of experience in North Carolina, and knows the real estate laws and regulations closely.

For example, here at Tryon title we have years of experience working with real estate agents and buyers in all of North Carolina’s 100 counties. We’re proud to be a North Carolina title insurance agency, so we strive to stay on top of any new rules and regulations that are passed.

How a Poor Title Insurance Policy Can Hurt Your Transaction

Without an accurate title insurance policy, a lot of things can go wrong. We’re not just talking about during your transaction—issues can also arise years after you close on your property.

When the title is not thoroughly researched and understood by the agency, your very right to own that property is in jeopardy. If you’re a real estate agent, part of your job is ensuring your clients have a successful transaction without any flaws or hiccups.

To do that job successfully, you need to partner with a title insurance agency that will help you facilitate the closing experience. In addition, your chosen agency will ensure the property’s title is clean and help your clients purchase the right title insurance policy for their situation.

Connect with Tryon Title for Your Title Insurance Needs

At Tryon Title, we do everything possible to ensure a smooth and successful real estate transaction for everyone involved. Have a question about your North Carolina title insurance needs? Please don’t hesitate to give us a call.

3 Things Every Realtor Should Know About North Carolina Title Insurance

An aerial view of three well maintained homes in a suburban neighborhood.

Buying a property—whether it’s commercial or residential—is a huge financial undertaking. That’s why it’s so important for property owners to protect their real estate investment with a title insurance policy. North Carolina title insurance is a crucial step in protecting your investment for the long term.

If you work with clients as a real estate agent, you should keep yourself up to date on the latest trends and laws regarding North Carolina title insurance. We’re a longstanding North Carolina title insurance agency and we want to partner with you to ensure your clients have the best experience possible.

So, here are three things every real estate agent needs to know about North Carolina title insurance.

It Protects Your Clients

Put simply, a title insurance policy protects the property owner’s rights to own that property.

Whenever you purchase a property, that property’s title will need to be transferred over to you. If something is wrong with the title that could harm the new owner financially, their title insurance policy is there to ensure they don’t lose their financial investment.

Unfortunately, a lot of things can go wrong when a property title is transferred. For example, if a previous owner of the property had a huge debt with their roofing contractor, that contractor may have put a lien on the property. Even if the original owner no longer lived there, without title insurance the new owner would be responsible for paying it.

With title insurance, however, the new owner won’t be held financially responsible for the previous owners’ lien.

It Provides Long-Term Peace of Mind

When it comes to property title issues, something can come up at any time—even years after you purchase the property!

That’s why title insurance is so valuable. It protects your investment for the entire amount of time that you own the home. Best of all, this protection comes at a relatively low cost—just 0.5% of the property’s purchase price.

Its Regulations and Policies Differ by State

Every state has different policies regarding title insurance. That’s why we highly recommend finding a title insurance agency with experience assisting real estate agents in North Carolina.

North Carolina title insurance has its own unique regulations and requirements. For more information, consider checking out the North Carolina Consumer’s Guide to Title Insurance or giving us a call here at Tryon Title.

Connect with a North Carolina Title Insurance Agency Today

Ready to dive into the world of title insurance. Our underwriters and title insurance professionals are here to help.

Reach out to our team at Tryon Title for a new policy, additional resources, and guidance on all things title insurance. We have years of experience helping real estate agents and property owners in all of North Carolina’s 100 counties.