Who Pays for Title Insurance in NC?

North Carolina title insurance is something that can get pricey, depending on who you choose for your title agency. Luckily, there are ways to break down exactly what you, as the homeowner, are responsible for paying for, and how you can save on title insurance in NC.

What is title insurance?

If you’re looking to purchase a home in NC, you should definitely consider title insurance. A good insurance policy will shield you from issues with a title during the transfer of property ownership. No matter how many homes you’ve owned before, it’s always important to find thorough North Carolina title insurance, so that you never have to break the bank dealing with a title dispute.

Most of the time, you are not legally obligated to purchase title insurance. However, it is a great reassurance to have it. With insurance, you can breathe easy knowing that in the case of any title issues, you are fully protected.

Before diving right in and purchasing title insurance in NC, it’s important to do some digging to find out why title insurance is important, and what title insurance agency will bring you the most value.

Do you really need title insurance?

Most homebuyers are looking to get the most bang for their buck, so wondering whether title insurance is necessary or not is completely normal. It’s important to recognize that even those with a clean title search are still not safe from potential title disputes. There may be issues that happen after the title search, and in many cases, fraud and negligence may not show up on the search. That’s why it’s important to have a security blanket in the form of title insurance.

If you own a home without title insurance, and a problem comes up years into paying the mortgage, the results could be devastating. For example, let’s say you have been paying off a home loan of $300,000 for 10 years. Over that period of time, you have achieved about half the loan in equity, amounting to $153,000. The brother of the previous owner comes out of the blue, showing that his name was on their title at a certain point, and claims that the home is actually his. After a legal battle, he could win, and the $153,000 equity and property rights could be taken away from you.

Title insurance policies cover legal payments and reimburse your equity if you lose your case. Having that protection there is a great stress relief and financial lifesaver!

Who pays for title insurance?

In North Carolina, title insurance is a requirement for almost all mortgaged homeowners. Lender’s policies are required, so if you’re taking out loans to purchase your home, you’ll generally have to buy a lender’s policy.

Owner’s title insurance in NC is not required and at the discretion of the homebuyer. It’s still great to have as protection against any legal battle over your title. Once you pay off your mortgage, your lender’s policy will end, and you’ll only need your owner’s policy.

Paying for title insurance in NC is a simple process. You only pay a one-time premium based on the home’s market value at the time of purchasing the property. That means no extra monthly hassle on top of all your other insurance payments. You’d only need to pay again if you ever refinance your home.

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How do you save money on title insurance in NC?

You can save lots of time, money, and energy by choosing an independent title service. Independent title agencies prioritize their customers above all else, because they keep the business running. This is contrary to non-independent title agencies, who often financially link with large title companies.

Independent title services offer local, streamlined, and personalized customer experiences. They aim to find you the best title insurance for your budget.

Choosing independent title insurance could save you hundreds of dollars. They give special importance to finding the best price for you, and avoid excess fees and costs that may be associated with title companies and real estate brokers.

On top of the financial savings, there are plenty of ways independent title services help you save time and energy. There are more independent title agencies around, so you most likely won’t have to commute as far to reach them. The locality of independent services helps you personally get to know the team, and build a relationship with the foundation of trust. That helps you breathe easy and know you’re in good hands when it comes to finding title insurance in NC!

Tryon Title provides independent title insurance in NC

At Tryon Title, you’ll get a reliable and trustworthy experience with top-grade expertise and precision. We’re here to find your absolute best coverage and put your best interests at heart. If you’d like more information about what we can do to help you find the title insurance of your dreams, feel free to talk with us today!