Buying a home in Franklin is exciting, but the paperwork around closing can feel overwhelming. Title insurance is one of those terms that pops up fast, and it is easy to wonder if you really need it. You want a smooth, stress-free closing that protects your investment for the long run.
In this guide, you will learn what title insurance does, the difference between lender and owner policies, how costs work in Tennessee, and what to expect during a Williamson County closing. You will also see local tips for Franklin so you can make confident choices. Let’s dive in.
What title insurance covers
Title insurance protects you from financial loss caused by past title problems that were not found during the public record search before closing. Coverage focuses on defects that existed before your policy date.
Common covered risks include forged deeds or signatures, undisclosed heirs, mistakes in public records, undisclosed liens like taxes or contractor liens, improper affidavits, and claims tied to prior ownership issues. You pay a one-time premium at closing and coverage lasts as long as you have an interest in the property for an owner’s policy. A lender’s policy lasts as long as the mortgage.
There are limits. Title insurance typically does not cover zoning or land-use violations, matters created after the policy date, boundary disputes that a proper survey would reveal unless you add a survey endorsement, certain easements or covenants of record, and any items listed as exceptions in your title commitment.
Title search and commitment in Williamson County
Before closing, a licensed title company or closing attorney completes a title search and issues a title commitment. The commitment shows what the title company will insure and lists exceptions like liens, easements, or recorded restrictions. It also lists requirements to clear before closing, such as payoffs, releases, or affidavits.
If you want extra protection beyond the standard policy, you can add endorsements. Common options include survey, access, mechanics’ lien, condo or planned unit development, and certain zoning-related endorsements when available. Your title company will confirm which endorsements are suitable for your property and how each affects your premium.
Most title policies use ALTA standardized forms with state-specific endorsements. In Tennessee, title insurance companies operate under state insurance law and licensing, and you receive consumer protections through the state regulator.
Lender policy vs owner policy
Lender’s policy
- Purpose: protects the lender’s interest in the property for the loan amount.
- Requirement: usually required by your mortgage lender.
- Coverage amount: equals the outstanding loan balance and declines as you pay the loan down.
- Who it protects: the lender, not you as the owner.
Owner’s policy
- Purpose: protects your equity and your right to use and sell the property. Coverage typically equals the purchase price.
- Optional but recommended: it is not required by law, but it is the only policy that protects your ownership.
- Duration: remains in force as long as you or your heirs hold an interest in the property.
- Endorsements: you can add endorsements for risks not covered by the base policy.
If you only buy the lender’s policy, your home equity is not protected against covered title defects. Buying both policies at the same time often qualifies for a simultaneous-issue discount.
Title insurance costs in Tennessee and Franklin
Title insurance premiums are a one-time charge, based mainly on the policy amount and the insurer’s filed rate schedule. Your cost can vary by insurer, property type, and any endorsements you add. Other closing fees are separate from the premium and may include settlement or closing fees, search and exam fees, document preparation, recording fees, wire or escrow handling charges, and payoff processing.
Who pays for each policy in Tennessee is not set by a single law. It is usually decided by local custom and your purchase agreement. In Franklin, practices can shift with market conditions. The best approach is simple:
- Review your purchase contract for how closing costs are allocated.
- Ask your agent and the title company about current local practice and for a written closing cost estimate.
- Expect that a lender’s policy will be required for financed purchases, but who pays is negotiable and will appear on your Closing Disclosure.
For the most accurate number, obtain a written estimate from the title company early and compare quotes if you like. Many Williamson County title companies provide good-faith estimates of title premiums and closing charges.
Franklin closing steps at a glance
Here is how a typical Williamson County closing flows:
Contract ratified. You and the seller sign the purchase agreement, which sets the closing date and who pays which costs.
Title order opened. Your agent or lender orders the title search and commitment from a title company or closing attorney.
Title search and commitment. The title company searches records and issues the commitment with exceptions and requirements.
Curative work. Liens are paid off, releases are obtained, and any recorded issues are resolved before closing.
Document preparation. The deed, settlement statement, mortgage or Deed of Trust, and required affidavits are prepared.
Closing and funding. The title company collects funds, the seller signs the deed, payoffs are sent, and documents are recorded with the Williamson County Register of Deeds.
Post-closing. Final policies are issued and records updated. You receive keys after funding.
Who handles closings in Franklin
In Tennessee, closings are commonly handled by licensed title companies or closing attorneys. They prepare documents, conduct the closing, disburse funds, and record instruments with the Williamson County Register of Deeds. Ask your title company how they handle recording, including any e-recording procedures and timelines.
How your agent helps
A strong buyer’s agent coordinates the moving parts so you are protected and on time. Here is what Mary’s team typically manages for you:
- Ordering the title search and tracking the title commitment.
- Reviewing exceptions and working with the title company to address curative items.
- Coordinating with your lender to satisfy requirements and endorsements.
- Scheduling closing and confirming needed documentation and funds.
- Managing communication among you, the seller, lender, and title company.
- Reviewing the Closing Disclosure with you so each line item makes sense.
- Advising you on an owner’s policy and endorsements that fit your property and risk.
- Supporting your final walkthrough and possession details.
Local Franklin tips to know
Williamson County is growing quickly, and that growth shows up in the title paperwork. Keep these points in mind:
- New subdivisions may have developer covenants, HOA documents, and maintenance agreements. These often appear as exceptions on the title commitment. Review them carefully.
- Properties with historic elements or conservation easements may include recorded restrictions. Your commitment will list them.
- Rural or older parcels outside the city can have boundary questions. Consider a current survey and a survey endorsement to your owner’s policy.
- Ask about regional endorsements commonly used in Williamson County, including survey, restrictive covenants, and access. Request pricing in writing.
Smart steps before you offer
Use this quick checklist to stay ahead of title issues:
- Confirm who will order the title search and which title company you will use.
- Ask for a written estimate of the owner’s and lender’s policy premiums and any endorsements.
- Clarify who pays for each policy based on local custom and your contract.
- Review recorded exceptions on the commitment and the plan to clear required items.
- Discuss recording procedures and expected timing with the title company.
- Order title as soon as your contract is ratified so curative items get resolved early.
Will title insurance cover everything
Title insurance is powerful but targeted. It protects you from certain past defects and document errors tied to ownership and recorded items. It usually does not cover zoning or use restrictions, HOA rules, or issues created after the policy date unless a specific endorsement applies. Your title commitment will outline what is covered and what is not. If you have questions, ask your agent and title company to walk you through the exceptions.
Buying in Franklin should feel exciting, not stressful. With a clear understanding of title insurance and a proactive team, you can close with confidence and protect your investment for years to come. If you want help reviewing a title commitment or planning your path to a smooth closing, connect with Mary Brown. We are here to guide you every step of the way.
FAQs
Is title insurance required for Franklin homebuyers
- Most lenders require a lender’s policy for financed purchases, while an owner’s policy is optional but recommended to protect your equity.
Who usually pays for title insurance in Williamson County
- Payment is negotiable and guided by local custom and your purchase agreement, so confirm the allocation with your agent and title company.
How much does an owner’s policy cost in Tennessee
- It is a one-time premium based on the purchase price and insurer rate schedule, plus any endorsement costs; ask the title company for a written estimate.
What does a title commitment show for Franklin properties
- It lists what the title company will insure, exceptions like liens or easements, and requirements that must be cleared before closing.
Will title insurance cover HOA rules or zoning limits
- Usually not; title insurance focuses on past title defects and recorded matters, while zoning and HOA use rules are typically excluded.
When should I order title after my offer is accepted
- As soon as your contract is ratified so the title company has time to complete the search and resolve any curative items before closing.
