Understand lender and owner policies, title searches, exceptions, liens, and closing protection.
Title search
A title search reviews public and other available records for ownership, liens, judgments, easements, restrictions, and defects affecting the property.
Lender policy
A lender title policy generally protects the lender’s secured interest up to the policy terms and amount; it does not provide the same protection to the homeowner.
Owner policy
An owner policy can protect the buyer’s ownership interest against covered title defects, subject to exclusions and exceptions.
Exceptions
Survey matters, boundary disputes, unrecorded rights, zoning, permits, and other issues may require additional review beyond a standard title commitment.
Resolve issues early
Review the preliminary title report or commitment early enough to ask questions and resolve unacceptable exceptions before closing.
Questions to ask before acting
- What assumptions could materially change the result?
- How much cash will remain after closing?
- What happens if taxes, insurance, repairs, or income change?
- Which terms should be confirmed in writing?
Bottom line
Use this guide as a framework for better questions and more complete comparisons. Actual eligibility, pricing, legal rights, and transaction requirements depend on the borrower, property, lender, program, contract, and location.