Title insurance in Georgia: owner's vs lender's policy
A title search looks backwards for problems. Title insurance covers the ones it missed.
What title is
Title is your legal ownership of the property. Before you buy, the closing attorney's office searches public records for anything that could cloud it: unpaid liens, judgments, unreleased loans, easements, boundary issues, gaps in the chain of ownership, or errors in old deeds.
Problems found in the search are cleared before closing, or listed as exceptions you are told about. Title insurance protects against covered problems that were not found — forged signatures, undisclosed heirs, recording errors and the like.
Lender's policy vs owner's policy
If you borrow, the lender's policy protects only the lender. Without an owner's policy, a covered title defect could leave you defending your ownership at your own cost. Most buyers buy the owner's policy for that reason.
| Lender's policy | Owner's policy | |
|---|---|---|
| Who it protects | Your lender | You |
| Required? | Yes, with a loan | Optional |
| Coverage amount | Typically the loan amount | Typically the purchase price |
| How long | Until the loan is paid off | As long as you or your heirs own |
| Paid | Once, at closing | Once, at closing |
Who pays
In Georgia the buyer usually pays for title insurance, but it can be negotiated as part of seller contributions. Premiums are set by title insurers and appear on your loan estimate and closing disclosure. Ask the closing attorney for a quote that includes both policies.
Read the title commitment
Before closing you'll receive a title commitment — the insurer's promise to issue a policy, subject to listed requirements and exceptions. Read the exceptions. Easements for utilities are normal; an unrecorded driveway agreement with a neighbor or a boundary encroachment is worth a question.
The survey
A standard title policy may exclude matters a survey would reveal — a fence on the neighbor's land, a shed over the setback line, a driveway that crosses the boundary. A survey, ordered during your due diligence period, shows where the lines really are. On larger lots and acreage it is well worth it.
Common title problems
Most of these are resolved before closing by the closing attorney's office. Some take time; a stubborn title issue is one of the few things that delays a Georgia closing for weeks.
- Unreleased security deeds — an old loan that was paid off but never formally cancelled of record.
- Liens — unpaid contractors, tax liens, judgments against a seller, or HOA liens for unpaid dues.
- Heirs and estates — a property inherited by several people, where not all have signed.
- Errors in old deeds — misspelled names, wrong legal descriptions, missing signatures.
- Encroachments — a fence, driveway or structure crossing a boundary.
- Access — a lot whose only route to the road crosses someone else's land without a recorded easement.
Endorsements and enhanced coverage
Owner's policies come in more than one form, and endorsements can add coverage for specific risks. Ask the closing attorney what the standard policy covers, what an enhanced policy adds, and the price difference. On a home you plan to keep for many years, the extra coverage is often worth considering.
Title insurance on new construction
New homes carry title risks too — unpaid subcontractors can file liens, and new subdivisions come with fresh plats, easements and covenants. Buy the owner's policy on a new build just as you would on a resale, and read the community's recorded covenants. See buying new construction in Georgia and HOAs in Georgia.
When title work happens
The closing attorney's office usually orders the title search soon after the contract is signed. The commitment often arrives within the first couple of weeks, which may be inside or just after your due diligence period. Ask for it as early as possible. If an exception worries you and you are still in due diligence, you can still terminate for any reason; afterwards, your rights depend on the contract's title provisions.
Questions to ask about title
- What does the title commitment list as exceptions, and what does each one mean for me?
- What is the premium for an owner's policy, and for enhanced coverage?
- Is a survey recommended for this property, and would it remove the survey exception?
- Are there recorded easements across the lot — utilities, drainage, shared driveway?
- Are there HOA or covenant restrictions recorded against the property?
- Has anything been found that the seller needs to clear before closing?
Common questions
Is owner's title insurance required in Georgia?
No. A lender's policy is required when you take a loan; the owner's policy is optional but protects you rather than the lender.
Who chooses the title insurer?
Usually the closing attorney's office places the policy with an insurer it works with. You can ask which insurer and for a premium quote.
Does title insurance cover boundary disputes?
It depends on the policy and whether a survey was done. Many standard policies exclude matters a survey would have shown.
Do I pay title insurance every year?
No. It is a one-time premium paid at closing.
Do I need a new owner's policy if I refinance?
No. Your owner's policy stays in force for as long as you or your heirs own the home. A refinance usually requires a new lender's policy for the new loan, because the old lender's policy ends when that loan is paid off. The closing attorney handling the refinance will quote it.
Read next
General information for Georgia home buyers, not legal, tax or lending advice. Loan programs, rates, limits, tax rates and insurance terms are set by lenders, agencies, counties and insurers and change — confirm current figures with them, and have your closing attorney review anything you sign.