Buying a home in Bloomfield Township is exciting, but the paperwork can feel overwhelming. One item you will see on your closing statement is title insurance. You may wonder what it covers, who pays, and how it affects your timeline. This guide explains title insurance in plain language so you can close with confidence in Bloomfield Township. Let’s dive in.
What title insurance covers
Title insurance is a one-time policy that protects you from covered losses caused by defects in a property’s ownership history that existed before you bought it. It helps safeguard your equity from problems that were not found during the title search.
Common covered risks include:
- Defective or invalid deeds, such as forgery or impersonation
- Undisclosed or outstanding liens and encumbrances, like unpaid mortgages or tax liens
- Unknown heirs or probate issues that affect ownership
- Clerical errors or mistakes in public records
- Certain prior unrecorded easements, depending on your policy form and exceptions
Common exclusions and standard exceptions can include:
- Zoning or land use violations or restrictions
- Matters you create or agree to as the buyer
- Unrecorded rights or claims that were not found in the search
- Survey-related issues and unrecorded boundary disputes, unless you add a survey endorsement
- Environmental contamination
- Any matters listed as exceptions in the title commitment, such as recorded easements, covenants, or taxes not yet due
You can often add endorsements to expand coverage. Examples include survey, access, encroachment, subdivision, or condominium endorsements. Availability and cost depend on the underwriter and the property.
Owner vs lender policies
There are usually two separate title insurance policies at closing.
- Owner’s policy: Issued in the amount of the purchase price. It protects your equity from covered defects like forged deeds, unknown heirs, recorded liens, or recording mistakes. Coverage stays in force as long as you have an interest in the property.
- Lender’s policy: Issued in the amount of the loan. It protects the lender’s mortgage interest. Coverage ends when the mortgage is paid off.
If you finance your purchase, the lender will typically require a lender’s policy. An owner’s policy is optional but strongly recommended, since it protects your ownership.
Costs and who pays
Title insurance is a one-time premium, not an annual fee. The owner’s policy premium is usually based on the purchase price, and the lender’s policy is based on the loan amount. Exact premiums vary by insurer, endorsements, and rate schedules. Always request an itemized title premium quote for your Bloomfield Township purchase.
Who pays for each policy in Michigan is a matter of local custom and negotiation in the purchase agreement. In some areas buyers pay for the lender’s policy and sellers pay for the owner’s policy. Practices can vary by county, neighborhood, and transaction type. Confirm the custom on your deal with your agent and title company.
Other closing costs you may see in Oakland County include:
- Recording fees for the deed and mortgage through the county
- State or local transfer taxes and conveyance taxes
- Escrow or closing agent fees, title search fees, and courier or wire fees
- Lender fees, loan origination or discount points if you finance
- Prepaid property taxes, homeowners insurance, and any HOA transfer fees
To see exact numbers, ask the title company for a written itemized quote and review your Good Faith Estimate or Closing Disclosure.
Closing timeline in Bloomfield Township
Most financed purchases close in about 30 to 45 days from an accepted offer. Cash deals can close faster. Your timeline depends on your lender’s process, the negotiated closing date, and how quickly any title issues are cleared.
After offer acceptance: 1–3 business days
- Your agent orders the title search and title commitment with the chosen title company.
- The title company begins the public records search and reviews tax history.
Title commitment issued: about 3–10 business days
- The title company issues a commitment that lists exceptions, liens, and items to clear.
- Payoff statements for existing mortgages or liens are requested.
Clearing exceptions: often 1–3 weeks
- The title company and your agent work with the parties to clear defects, such as getting releases for liens, correcting deeds, or obtaining affidavits.
- Complex issues like probate, divorce settlements, or complicated liens can extend the timeline.
Clear to close: final days before closing
- Your lender issues final underwriting clearance.
- The title company prepares final policy commitments and closing statements.
Closing day
- You complete your final walkthrough.
- You sign documents, funds are wired or delivered in certified form, and the deed is recorded with Oakland County.
- The title insurance policy is issued after recording and payment.
Respond quickly to any title company requests, such as photo IDs, wire verifications, insurance declarations, or HOA documents, to keep your closing on track.
Common local title issues
In suburban Oakland County communities like Bloomfield Township, title companies often resolve:
- Unpaid property taxes, municipal liens, or special assessments, which typically require payoff at closing
- Outstanding mortgages or liens with missing satisfactions, resolved by obtaining payoff statements and recorded releases
- Mechanic’s or contractor liens, sometimes requiring payoff, bonding, or legal resolution
- Probate or heir claims and gaps in the chain of title, addressed with affidavits, corrective deeds, quiet title actions, or probate resolutions
- Clerical errors in deeds or public records, fixed by corrective documents
- Easements, restrictive covenants, or rights-of-way, disclosed as exceptions on the commitment
- Boundary disputes or encroachments, which are usually excluded unless you purchase a survey endorsement or provide a recent acceptable survey
Your agent and title company will recommend remedies and coordinate any needed documents or payoffs. If an issue cannot be resolved by closing, the parties may negotiate escrow holdbacks or adjust timelines.
Your closing checklist
Print or save these checklists to stay organized.
Buyer checklist
- Government-issued photo ID
- Mortgage pre-approval and lender contact; final loan documents when provided
- Purchase agreement and all addenda
- Proof of earnest money deposit
- Homeowners insurance binder or declaration page
- HOA or condo applications if applicable
- If paying cash, wiring instructions for funds and source-of-funds documentation
- Power of attorney documents if someone will sign on your behalf
Seller checklist
- Government-issued photo ID
- Original deed if available and mortgage payoff information
- Recent property tax statements and assessments
- HOA documents, including declaration and bylaws if applicable
- Survey if available and any prior title policy
- Documentation for repairs, permits, and contractor lien releases
How your agent coordinates
A strong local agent keeps your title process smooth. Here is how the coordination typically works:
- Order and delivery: Your agent orders the title search and commitment immediately after contract acceptance and provides the fully executed purchase agreement to the title company.
- Communication hub: Your agent acts as liaison among you, the other party, the lender, and the title company to gather documents, respond to title commitment exceptions, and manage deadlines.
- Reviewing the commitment: Your agent reviews the commitment with you, explains exceptions and recommended endorsements, and coordinates corrective actions with the seller and title company.
- HOA and condo matters: Your agent helps request HOA estoppel letters and tracks response timelines.
- Closing logistics: Your agent confirms closing date, time, and location, verifies wiring instructions directly with the title company, and ensures you receive the Closing Disclosure and pre-closing paperwork early.
- Final walkthrough and closing day: Your agent attends or coordinates your walkthrough and closing.
- Post-closing: Your agent confirms deed recording and that your title policies are issued or provides instructions to obtain copies.
Next steps
- Ask your agent to order the title search as soon as your offer is accepted.
- Request an itemized title premium quote and review your Good Faith Estimate or Closing Disclosure.
- Decide on endorsements with input from your agent and title company, especially for survey or access coverage.
- Confirm wiring instructions directly with the title company by phone before sending any funds.
- Respond quickly to all document requests to avoid delays.
When you want a concierge-level experience with clear guidance from offer to closing, connect with the Cindy Kahn Team to Request Your KahnCierge Consultation.
FAQs
What is title insurance for Michigan buyers?
- It is a one-time policy that protects you from covered losses caused by pre-existing defects in a property’s ownership that were not found during the title search.
Do I need both an owner’s and lender’s policy?
- If you finance, the lender usually requires a lender’s policy; an owner’s policy is optional but recommended since it protects your equity for as long as you own the home.
How much does title insurance cost in Bloomfield Township?
- Premiums are one-time and based on purchase price or loan amount; amounts vary by insurer and endorsements, so request an itemized title quote for your specific property.
Who typically pays for the owner’s policy in Michigan?
- Payment is based on local custom and negotiation; practices vary by county and transaction, so confirm in your purchase agreement and with your title company.
How long does a financed purchase take to close?
- Most financed purchases close in about 30 to 45 days, while cash deals can close faster depending on title clearance, lender processing, and contract timelines.
What is a title commitment and why does it matter?
- It is the title company’s report that lists liens, exceptions, and items to clear before closing; it guides what must be resolved to insure your title.
Can title insurance cover survey or boundary issues?
- Standard policies often exclude survey matters and boundary disputes; you may add a survey endorsement or provide an acceptable recent survey to expand coverage.