Real estate agents help buyers understand important decisions before closing. Owner’s title insurance deserves a place in those conversations.
For Tennessee agents, explaining the basics early gives buyers time to review their options, understand costs, and ask questions.
Explain the difference between owner’s and lender’s coverage
Buyers sometimes assume the title insurance required for their mortgage also protects them. A lender’s policy protects the lender’s interest. An owner’s policy provides separate protection for the buyer’s investment against covered title claims.
Encourage buyers to confirm which policies are included in their transaction.
Help buyers understand what a title search does
A title search examines public records for ownership history, liens, and other matters affecting the property. Identified issues may need to be addressed before closing.
Some defects, including forged documents or errors in earlier deeds, may remain undiscovered. An owner’s policy can provide protection against covered losses arising from those earlier problems.
Discuss costs before closing day
Ask for an itemized estimate rather than relying on a general percentage of the purchase price. Title insurance premiums, title searches, and closing services are different charges.
For transactions using a Loan Estimate, owner’s title insurance appears in Section H. Buyers should ask the closing team to explain any figures they do not understand.
Who pays for an owner’s policy can be negotiated in the purchase agreement. Confirm the agreement’s terms instead of assuming one party always pays.
Encourage questions about the actual policy
Coverage depends on the policy issued. Useful questions include:
- What coverage is being offered?
- What exceptions or exclusions apply?
- Are additional endorsements available for this transaction?
- How should the buyer report a potential claim?
Direct questions about specific coverage to the title insurance provider so buyers receive answers tied to their policy.
Keep communication moving
Share the signed purchase agreement, amendments, and relevant transaction details with the closing team promptly. Raise known ownership concerns early so there is time to review them.
Three Rivers Title works with agents, buyers, sellers, and lenders in Waverly and surrounding Tennessee communities. Contact our team or call 931-264-4640 to discuss an upcoming closing.