WHAT IS TITLE INSURANCE?
Protection against defects from the past such as forgeries, claims by missing heirs, recording errors, unpaid judgements, etc. which affect the title to your home or business.

DO I HAVE TO GET A TITLE POLICY?
Almost all lenders require that you purchase a lenders title insurance policy as a condition of making the loan. It is prudent to obtain an owners title insurance policy at the same time, but that is optional, and not required by the lender.

WHAT’S THE DIFFERENCE IN THE TWO?
An owners policy insures title to the physical  property itself- the land and the dwelling or business on it. It protects you and your heirs for as long as you own the land.

A loan policy insures the lender's Deed of Trust- the document whereby you pledge your property as collateral for the loan. It insures the lender against any prior debts, judgements or other claims that might have priority over their Deed of Trust.

WON’T THE LOAN POLICY ALSO PROTECT ME?
No, it protects the lender if their priority is threatened. Remember when we said that an owners policy was optional but prudent?

Here is why. Without a corresponding owners policy, you the owner are first in line to either pay or defend against any claim. Your only two choices are to pay whatever it may cost or to default on your loan, thus resulting in foreclosure. Only then will the lender's title insurance company become involved on their behalf.

HOW MUCH DOES TITLE INSURANCE COST?
North Carolina has the lowest title insurance rate in the nation. Also, when an owners policy is purchased, a loan policy may be issued at no additional cost. Rates begin at $2 per $1,000 of the purchase price, then decrease as the purchase increases. A $200,000 home would pay a premium of $410. If a prior title policy has ever been issued on this same land, then the premium may be reduced by as much as 50%.

IS THIS AN ANNUAL PREMIUM?
No, this is a one-time premium paid at closing. However, each time that you refinance, a new loan policy must be purchased since, as you recall, the loan policy insures the document-the lender's new Deed of Trust.

SO IS THIS THE SAME THING AS HOMEOWNERS INSURANCE?
No, homeowners insurance protects the home's contents and damage to its structure. It is subject to annual premiums. Title insurance only addresses threats to the title, or ownership, of your home.

THEN AREN’T ALL TITLE INSURANCE COMPANIES ABOUT THE SAME?
No. We have previously mentioned the N.C. standard rate, but there are a number of other rates for certain circumstances, i.e. reissue rate, developer rate, relocation rate, etc. that may save you money, but many title companies are not looking out for your best interest. Rather than searching for the lowest rate, they simply default to the higher rate.

There are also an increasing number of lenders who either own or are affiliated with a title agency. Their interest is primarily in obtaining a lenders title policy for themselves, and they, quite often, do not care if you do or don't get an owners policy.

WHEN DO I GET TITLE INSURANCE?
Title insurance is ordered by your closing attorney prior to your loan closing. If you wish to have a voice in the selection of your title insurance company, now is the proper time to speak up.

MUST I USE AN ATTORNEY FOR CLOSING?
Must you use an attorney? No. Should you use an attorney? Yes. And not just an attorney, but one who is representing you! There are other entities who conduct closings in NC, including closing companies and lenders doing closings "in-house'. In most of these circumstances, there is not an attorney present, which means that if you have any type of legal question, it cannot be answered. In other cases, the closing is conducted by an attorney selected by the lender. Often this attorney feels that he/she is working for the lender (even though you are paying the bill!), and because of that, may be reluctant to offer advice contrary to the best interest of the lender. Always ask the attorney if they are representing you. Or better yet, make your own choice. (See our links for some of the attorneys in your area.)

WHY SHOULD I USE PREMIER TITLE?

• Take advantage of our C.A.T. Service:
• COMMITMENT- to finding the lowest rate available-every time
• ATTITUDE- you can hear a smile on the line-every call
• TALENT- our staff are licensed professionals, our legal counsel seasoned
• experts-every one

**OUR PLEDGE TO YOU IS TO PROVIDE THE LOWEST RATE, FASTEST SERVICE, AND MOST ACCURATE DOCUMENTS POSSIBLE. TO USE PREMIER TITLE SERVICES FOR YOUR CLOSING, JUST CLICK ON THE LINK BELOW, PRINT AND SIGN THE FORM, AND GIVE IT TO YOUR ATTORNEY OR REALTOR AS SOON AS POSSIBLE.

DOWNLOAD PREMIER'S TITLE FORM (PDF)