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Understanding the Title Process

Title refers to the legal ownership of a home. When you purchase a home, ownership is transferred to you through a document — usually called a deed — that is signed by the seller, delivered at closing, and then recorded with the county. Once the deed and any other required documents needed for transfer are recorded, you officially are in title to the home.

Title Search

The process of transferring title requires a title company — or, in some states, an attorney or settlement agent — to perform a title search prior to closing. The search checks public records to confirm the title is clear of “defects.” Any outstanding issues could delay closing. Possible title defects include:

Unpaid property taxes

Liens for unpaid repairs or renovations

Improper or incorrect document recordings

Judgment liens

The title company or agent also coordinates the signing and transfer of the physical deed.

Title Insurance

Title insurance protects against issues -- like liens or other claims against the home -- that aren’t identified during the title search and may become an issue later. There are two types of title insurance.

Lender title insurance

Lender's Title Insurance

Lender’s title insurance is typically required by the lender to get a mortgage loan. It protects the lender against problems with the property title.

It’s important to note that it only protects the lender against title defects -- not you as the new owner.

Owner's Title Insurance

Owner’s title insurance is optional, but it’s worth considering. If someone challenges your ownership interest or claims a lien against the property, you would typically be responsible for resolving the issue -- but owner’s title insurance may help address these historical title issues. You may be able to save money on owner’s title insurance by checking rates with multiple companies.

Owners title insurance
Pro Tip

Title-related fees are paid as part of your closing costs. Title services are shoppable, so you may be able to save money by researching the options in your area.

What's next?

Make sure you have everything you need to complete the closing process.

Closing checklist

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What to Expect When Closing

Prepare for closing by following these steps: Choose your title company, prepare your documents and funds, and take a final walkthrough.

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Closing Costs Calculator

Prepare for closing by following these steps: Choose your title company, prepare your documents and funds, and take a final walkthrough.

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Learn More About Homeownership

Learn more about mortgage terms like principal, interest, and escrow to help you better understand your monthly mortgage statement.

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