Buying or selling a home in Cary comes with a lot of moving parts, and title insurance is one of the most misunderstood. You might be wondering what it actually covers, how much it costs, and whether you really need it. You are not alone. The good news is that once you understand the basics, you can make confident, low‑stress decisions at closing.
Below, you will learn what title insurance is, how it works in North Carolina, what it typically covers and excludes, what it costs in Wake County, and who usually pays. You will also see common Cary scenarios and a simple checklist to keep your closing on track. Let’s dive in.
Title insurance basics
Title insurance protects you against covered losses tied to past defects in a property’s title, like a missed lien or a recording error. It is different from homeowners insurance, which covers future physical damage to the home. Title insurance is a one‑time premium you pay at closing, and coverage lasts as long as you or your heirs have an interest in the property.
There are two main policies:
- Owner’s policy protects your equity and ownership rights, usually up to the purchase price.
- Lender’s (mortgagee) policy protects the lender up to the loan amount. Most lenders require this if you have a mortgage.
Before issuing a policy, the title company or closing attorney performs a title search and issues a title commitment that lists exceptions. The final policy covers against covered defects that are not excluded and were not cleared before closing.
How it works in North Carolina
In North Carolina, closings typically involve a closing attorney who prepares or reviews your deed and settlement documents and often serves as the settlement agent. Title insurance is regulated by the North Carolina Department of Insurance, which oversees title companies and rate filings.
For Cary and other Wake County properties, the title search reviews records at the Wake County Register of Deeds, county tax records, and relevant municipal records. Your owner and lender policies are usually issued after recording, though some transactions use simultaneous‑issue procedures so documents and coverage are coordinated at closing.
Local custom can influence who pays for certain items. In many North Carolina transactions, sellers commonly pay for the owner’s title insurance premium, while buyers typically pay for the lender’s policy and lender‑required items. This can vary by neighborhood and market conditions, so always confirm in your purchase contract and with your closing attorney.
What it covers vs. what it does not
Typical coverage
- Forged or improperly executed deeds and other recorded documents.
- Undisclosed or missing heirs with claims to the property.
- Errors in public records, such as misindexing or clerical mistakes.
- Incorrectly recorded documents or prior mortgages and judgments that were not properly released.
- Certain undisclosed easements or rights of way that materially impair use, if not excepted in the commitment.
Common exceptions and limits
- Matters shown as exceptions in your title commitment, such as recorded easements, covenants, or restrictions.
- Unrecorded issues not found in the search unless addressed by a specific endorsement.
- Zoning or building code violations, and boundary disputes, unless you add endorsements.
- Liens or encumbrances created after your policy date.
- Risks that require special endorsements, such as survey issues, certain HOA matters, or environmental concerns.
Endorsements to consider in Cary
- Survey or boundary endorsements when lot lines, fences, or older plats could be unclear.
- Covenants and restrictions endorsements for planned communities and HOAs, which are common in Cary.
- Zoning or subdivision endorsements if your intended use could be affected.
- Mechanic’s lien endorsements for new construction or recent renovations.
Owner policy vs. lender policy
An owner’s policy protects your equity and ownership rights. It is typically issued for the purchase price and covers you and your heirs while you hold title. A lender’s policy protects the lender’s interest up to the outstanding loan amount. It does not protect you as the owner. If you want protection for your ownership and equity, choose an owner’s policy.
Typical costs in Cary and Wake County
Title insurance premiums in North Carolina are based on rate schedules filed with and approved by the state. Your price depends on your purchase price, loan amount, and any endorsements you choose. You pay once at closing.
- Owner’s policy often represents a meaningful portion of your closing costs. A common national pattern is roughly 0.3% to 1.0% of the purchase price, which translates to several hundred to a few thousand dollars on typical Triangle home prices.
- Lender’s policy is usually less than the owner’s policy because it is based on the loan amount.
- Endorsements add set fees, and surveys or gap coverage can also increase costs.
- Many insurers offer simultaneous‑issue discounts when owner and lender policies are issued together.
- Reissue or refinance rates may reduce premiums when you refinance or transfer title within a defined period.
Who pays is negotiable and guided by local custom. In many North Carolina deals, the seller pays the owner’s policy and the buyer pays the lender’s policy. Always confirm in writing in your contract and review your draft closing statement with your closing attorney.
Cary and Triangle issues to watch
Cary’s growth and planned communities bring a few recurring title themes. Knowing these ahead of time helps you choose smart endorsements and avoid surprises at closing.
- HOA covenants and assessments. Cary has many HOA communities. Recorded covenants and restrictions can limit changes to exteriors, landscaping, or outbuildings. Unpaid assessments can lead to recorded liens. Ask to review HOA documents and any notices of pending projects.
- Easements and utility corridors. Utility, drainage, or access easements can affect where you build a fence, add a shed, or plant trees. If you plan improvements, discuss survey or location endorsements.
- Plat and boundary questions. Older plats or piecemeal subdivisions sometimes clash with current fences or landscaping. A recent survey can help, and a boundary endorsement may be worth the cost.
- Municipal items and permitting. Unpaid municipal assessments for sidewalks, water or sewer, or special districts can show up as encumbrances. Your title search should check municipal accounts, but confirm balances prior to closing.
- Mechanic’s lien risks. New construction and recent renovations can create exposure if contractors or subcontractors were not paid. This is commonly handled with lien waivers, endorsements, or escrow.
- Probate and unknown heirs. In older properties, past transfers may have missing signatures or incomplete estate work. Title searches aim to surface these issues early so they can be cured before closing.
Real‑world scenarios
- Scenario A: You buy in a Cary subdivision. The title commitment lists HOA covenants and public utility easements as exceptions. You review the HOA rules and add an endorsement to protect planned improvements like a fence or patio.
- Scenario B: You purchase an older home near downtown Cary. The search finds a prior mortgage that appears released but has a clerical error. The title company cures it with a corrective release or insures over it with indemnity if timing is tight.
- Scenario C: You are selling after a renovation. A contractor files a lien you were not aware of. If it is recorded before closing, the lien must be resolved or escrowed. If it ties back to pre‑policy work that surfaces after closing, your policy may respond depending on coverage and endorsements.
Smart steps before closing
Buyer checklist
- Ask for the title commitment as soon as it is available and read the listed exceptions.
- Confirm who pays for the owner’s policy and who pays the lender’s policy in your contract.
- Review HOA covenants, restrictions, and any assessment history if you are buying in a planned community.
- Decide on endorsements early, especially survey, location, and HOA‑related options, and get itemized costs.
- Confirm your closing attorney or settlement agent and request draft fee sheets and a sample closing statement.
- Keep your owner’s policy in your records after closing. It protects you and your heirs.
Seller checklist
- Gather payoff information and evidence of releases for all past mortgages or equity lines.
- Disclose known title issues early, such as boundary questions or unrecorded easements, and be ready to cooperate with cures.
- If local custom or your contract has you paying for the owner’s policy, budget for that cost.
For both parties
- Request itemized title and settlement fees from the closing attorney or title agent before closing.
- Share any existing survey and permits. If none exist, ask whether a new survey or a survey endorsement is recommended.
- When in doubt, ask your attorney or title agent to explain each exception and what the policy does or does not insure in plain language.
The bottom line
Title insurance is a one‑time investment in peace of mind. In Cary and across Wake County, it fits neatly into the attorney‑led closing process, protects against covered past defects, and can be tailored with endorsements to match your plans for the property. If you review the title commitment early, confirm who pays for which policy, and choose the right endorsements, you will walk into closing with clarity and confidence.
If you want help weighing options or sense that your property has unique title considerations, reach out. We are happy to coordinate with your closing attorney and help you navigate the key decisions. Connect with Shenandoah Nieuwsma to schedule your free 15‑minute brainstorming session.
FAQs
What is title insurance for Cary homebuyers?
- It is a one‑time policy you buy at closing that protects against covered losses from past title defects, like missing releases or recording errors, for as long as you own your home.
What is the difference between owner and lender policies in NC?
- An owner’s policy protects your equity and ownership up to the purchase price, while a lender’s policy protects the lender up to the loan amount and does not protect you.
How much does title insurance usually cost in Wake County?
- Pricing follows state‑approved schedules and varies by price, loan amount, and endorsements; a common national pattern for owner policies is roughly 0.3% to 1.0% of the purchase price.
Who typically pays for the owner’s policy in North Carolina?
- Custom varies by market and contract, but many NC transactions have the seller pay for the owner’s policy while the buyer pays the lender’s policy and lender‑required items.
When do I receive my title policy after closing in Cary?
- Policies are usually issued after recording at the Wake County Register of Deeds, though simultaneous‑issue procedures can coordinate documents and coverage at closing.
Do I need a survey or a survey endorsement in Cary?
- If lot lines, fences, or planned improvements are in play, a recent survey and a survey or location endorsement can reduce risk and clarify what the policy will cover.
Are HOA assessments covered by title insurance?
- Recorded HOA liens identified and cleared before closing are typically addressed, but future assessments or unrecorded issues are not covered unless a specific endorsement applies.
