Title insurance is one of those line items at a North Carolina closing that most homeowners do not understand until they see it on the settlement statement. For sellers considering a cash sale, knowing how title insurance works helps clarify what they are signing and what risks the title attorney is protecting against.
What Title Insurance Actually Covers
Title insurance protects against claims that someone else has rights to the property. Common claims include unknown heirs of a previous owner who were not included in a probate, undisclosed liens or judgments that did not show up in the title search, mistakes in past deeds that affect the chain of ownership, and fraudulent transfers in the property history. The policy pays the cost to defend against the claim and any damages awarded.
Two Types of Policies
There are two title insurance policies issued at most NC closings. The owner’s policy protects the new owner against claims that arose before they purchased the property. The lender’s policy protects the mortgage lender’s interest. In a cash sale where there is no mortgage on the buyer side, only the owner’s policy applies.
Who Pays for Title Insurance in NC
In North Carolina, the buyer typically pays for the owner’s title insurance policy. The seller does not pay for title insurance directly. For sellers, the relevant title work is the title search itself, which the NC closing attorney runs to verify the seller has clear title to convey.
What Title Problems Slow Down NC Closings
The most common title problems that delay or kill NC closings include unpaid property tax, mechanic’s liens from unpaid contractors, judgments from court cases against the owner, errors in past deed preparation, and gaps in the chain of title from past sales that were not properly recorded. The NC closing attorney identifies these during the title search and works to clear them before closing.
How Cash Sales Handle Title Issues
For a cash sale to J&B Homebuyers, the company coordinates with a North Carolina title attorney in the appropriate county to handle title work. North Carolina is an attorney closing state. The attorney runs the title search, identifies any issues, and works to clear them. Most title problems can be resolved through standard procedures. Some require lien releases, affidavits, or other corrective documents. The closing date can be adjusted to allow time for resolution.
About J&B Homebuyers
J&B Homebuyers is a direct cash home buying company based at 5105 Hawthorne Lane in Shelby NC. Co founded in 2019 by Joshua Brooks and Jessica Quito, the company has purchased more than 45 homes across Cleveland, Gaston, Catawba, Lincoln, and Mecklenburg counties. BBB A+ Rated since June 2023. Direct buyer, not a wholesaler. Reach them at (704) 286-9391.
Sell Your House Fast Across Western North Carolina
J&B Homebuyers has purchased 45+ homes across Cleveland, Gaston, Catawba, Lincoln, and Mecklenburg counties since 2019. BBB A+ Rated since June 2023. Joshua Brooks or Jessica Quito, the co-founders, personally walks every property before any offer.
- Shelby NC | Charlotte NC | Gastonia NC | Lincolnton NC | Hickory NC
- Belmont NC | Bessemer City NC | Dallas NC | Mount Holly NC | Kings Mountain NC
Call (704) 286-9391 or visit jandbhomebuyers.net for a no pressure conversation.