Tips for a Smart Transaction: Is Title Insurance Transferable?

Two colleagues communicating across a desk.

One of the most time-consuming parts of owning a home is choosing to sell it. There are a number of steps to successfully sell one’s home, all of which require time, careful research and planning.

If you’re about to transfer your home’s title, you might find yourself wondering if your title insurance policy is also transferable. This depends entirely on the state you live in. As your North Carolina title insurance experts, we have the answer:

Title Insurance is Not Transferable in North Carolina

According to the North Carolina Department of Insurance’s Consumer Guide to Title Insurance, you cannot transfer your owner’s title insurance policy to the home’s new owner.

If the new owner of the property wants to be protected against any issues with the title, they will need to purchase their own title insurance policy.

However, as the property’s one-time owner, you may still keep your owner’s title insurance policy even after you’ve sold the property. This may protect you from any issues that come up in the future.

Can I Transfer My Title Insurance to Cover a New Property?

Once you purchase a new property, you will need to obtain a new owner’s title insurance policy to protect its title.

This is because you’ll have to complete a new title search for your new property. In addition, the new policy’s premium price will depend on the market value of the home.

Do I Need Title Insurance for Every Property I Purchase?

While having an owner’s title insurance policy is not legally required, it will protect you in the event of any issues with your title.

That’s why we recommend taking out a title insurance policy for every new property you purchase. Since your existing policy cannot be transferred, it is imperative to protect your new investments.

Interested in learning more about the title insurance policy process? Contact us today to to obtain your own owner’s coverage policy.

Tryon Title Makes All the Difference

At Tryon Title, our experienced staff of underwriters and title insurance providers are here to help. Allow our team to provide you with accurate and reliable results in no time. In fact, our underwriters can deliver a final policy within 24 hours.

If you’re searching for a title insurance policy in North Carolina, please reach out to us today for a consultation.

You Need to Ask these Important Questions about NC Title Insurance

A young couple receiving the keys to their new home.

When you buy a home in North Carolina, it’s important to protect yourself with a thorough insurance policy. That’s why we recommend all homebuyers, whether it’s your first home or your fifth, take out a comprehensive North Carolina title insurance policy.

While title insurance is not legally required, having a policy on your property will ensure peace of mind throughout your homeownership.

Simply put, title insurance protects you in the event of any issues with your title. If you’ve never purchased title insurance before, it’s time to do some research and ask your insurance provider these important questions.

Do I Really Need Title Insurance to Purchase Real Estate in NC?

When you buy a home, the property’s previous owner will transfer the property’s title to you. Title insurance protects your claim of ownership to that property, as well as the equity you build as you pay your mortgage over time.

While title insurance is not legally required, we highly recommend all North Carolina homebuyers take out a sufficient title insurance policy. This way, their equity is protected in the event that something comes up with their title.

Even if you’ve already paid for a title search and it comes up clean, you may still be at risk. Oftentimes, negligence and fraud do not appear on title searches! If something were to come up and you did not have a title insurance policy, you may still be at risk.

How Does Title Insurance Protect Me?

Let’s say you buy a home for $250,000. You pay your mortgage payment every month and then some, and this goes on for many years. Over 10 years, you pay off more than half of the loan, meaning you now have over $125,000 worth of equity. All of a sudden, a relative of the last owner appears and claims that the home is actually theirs. They helped the last owner purchase the property and their name was on the title at one point.

They can take you to court over ownership of the home—and if they win, you could lose your equity and rights to the property. If you have a title insurance policy, you’ll be reimbursed for your court fees and, should you lose, the equity you’ve built up in the home up to the amount of your policy.

Who Pays for Title Insurance?

In North Carolina, the buyer is responsible for purchasing owner’s title insurance.

However, you may also be responsible for purchasing lender’s coverage title insurance for the lender financing your home loan.

Luckily, title insurance in North Carolina is very affordable! You’ll pay a one-time premium when you buy the property. This premium is based on the market value of the home.

You’ll only have to pay again should you choose to refinance your home later on down the line.

How Long Does Title Insurance Last?

Once you purchase title insurance in North Carolina, that’s it. The title insurance will last the entire amount of time that you own the home.

Lender’s title insurance coverage, however, only lasts for the amount of time that you have a mortgage loan. Once you pay off your mortgage loan, the lender’s coverage ends. At that point, however, you’ll only need your owner’s coverage policy.

Tryon Title: Your Top North Carolina Title Insurance Provider

At Tryon Title, we provide our customers with fast customer service, laser-sharp accuracy, and 5-star customer service. Our title insurance professionals are here to help you find the coverage that’s right for you.

For more information on obtaining title insurance in North Carolina, please don’t hesitate to give us a call.

North Carolina Title Insurance: What Is It and Why Do I Need It?

Let’s say you’re buying a home. First of all, congratulations! This is an exciting life decision, and we know you’ve been working toward it for a long time. That’s why it’s so important to protect your investment with North Carolina title insurance.

Just like you need homeowners insurance to protect your home from fires, storms, and other natural disasters, you need title insurance just in case something is wrong with your home’s title. If an issue arises with your title in the years following your purchase (whether it’s a former owner disputing your right to it or a costly lien filed against it), you may be in trouble financially. That’s where title insurance comes in.

Here’s the rundown:

What is Title Insurance?

Real estate is a huge investment—whether it’s a new construction home or a vacant plot of land. Because it’s such a big purchase, any time a property’s title or ownership is transferred, certain risks arise.

When you take out a title insurance policy on a property in North Carolina, you’re signing up for two things. One is a thorough investigation of the property’s title history. The second is insurance that protects you in the event of a title loss or discrepancy on the title’s history.

Not only is title insurance valuable, it’s highly affordable in North Carolina. You pay a one-time premium at closing based on the value of your property.

Do I Really Need Title Insurance?

A woman sitting in front of a computer with her head on her chin researching north carolina title insurance

While it’s optional, it is highly recommended. Depending on the age of the land or property you’re purchasing, it might have gone through several owners. Over the years, title issues can arise due to a number of different problems.

Some of these problems might be mistakes like clerical errors, miscommunication between owners, or inadequate surveys. Other problems may arise from negligence, fraud, or forgery.

If an issue with your title arises somewhere along the line, you’ll be prepared, protected, and insured if you have a proper policy.

What Kind of Issues Might Arise?

We’ll walk you through some hypotheticals. Say you purchase a home from a single woman. However, that woman bought the home with her former husband—whose name is still on the title. She sold it without a signature from that former husband, meaning he may come back and lay a claim to it after it’s been sold.

Or, perhaps a lien was taken out against the property. A company or organization may have a right to place a lien on the property in order to settle a former owner’s debt. A lien stays with a property until it is paid off or the property enters foreclosure.

What Kinds of Title Insurance are Available?

A man showing his client different north carolina title insurance options on a graph.

Generally speaking, there are two kinds of title insurance: lender’s coverage and owner’s coverage.

Any real estate transaction comes with a small amount of inherent risk, so the lender’s coverage protects the lender for the amount of money they’ve loaned to the buyer.

Plus, when you purchase a title insurance policy, you receive an extra layer of security. Say you have to hire a lawyer and go to court to defend your title: when you have a policy, it covers your legal costs up to the amount of the purchase price.

The lender’s coverage policy ends when the owner pays the loan off. The owner’s coverage policy lasts for the entire time they own the property, with additional protection after selling the property.

How Do I Get Title Insurance in North Carolina?

Title insurance differs from state-to-state, but North Carolina has some of the lowest title insurance rates available. To pick the insurer that’s right for you, we highly recommend meeting with your attorney to discuss it.

Once you sign a purchase agreement for the property, your escrow and closing agent will begin the process of helping you obtain title insurance.

Looking for more information about which coverage is right for you or your clients? Our North Carolina title insurance professionals are here to help.

What Makes Tryon Title the Best Option for Title Insurance in North Carolina?

At Tryon Title, we are provide our clients with exemplary customer service, as well as the fastest turnaround times with laser-sharp accuracy. We’re also local to North Carolina, so we understand this area and its unique real estate needs better than anyone.

Our dedicated team of North Carolina title insurance professionals has more than 50 years of combined title insurance experience, and our underwriters are known for delivering final policies in less than 24 hours. No matter how small, large, or complicated your task may be, please know that it is our top priority.

Please reach out to us today for an expedited, accurate, and streamlined title insurance experience.