Title Insurance in Michigan: What Ortonville Buyers Should Know

Buying a home in Ortonville is exciting, but the paperwork can feel overwhelming. Title insurance is one of those items that raises questions: What is it, do you need it, and how does it work in Michigan? You want to protect your investment and avoid surprises after closing. In this guide, you’ll learn what title insurance covers, how the process works in Oakland County, what it costs, and the steps to take for a smooth closing. Let’s dive in.

What Title Insurance Covers

Title insurance protects you from financial loss caused by defects in the property’s title that existed before your policy was issued. It is different from other insurance because it looks backward at past events instead of future risks.

Owner’s vs. lender’s policies

• Owner’s policy protects your ownership interest, usually up to the purchase price, and lasts as long as you or your heirs have an interest in the property.
• Lender’s policy protects your mortgage lender’s interest. Most lenders require it when you finance a home, but it does not protect your equity.

Standard coverage

Common covered risks include forged or invalid signatures, recording errors, undisclosed heirs who claim ownership, and defects in the chain of title that a standard search did not catch.

What is not covered

All policies include exceptions. Typical exceptions are items already shown in public records, taxes not yet due, zoning issues, and rights of parties in possession. You can often add endorsements to expand coverage for specific risks like access, survey matters, or mechanics’ liens.

Michigan and Oakland County Basics

Where records are kept

In Ortonville, documents that affect real estate are recorded with the Oakland County Register of Deeds. Title examiners review prior deeds, mortgages, liens, easements, and plats there during the title search.

Local taxes and assessments

Property taxes and special assessments are levied by local authorities such as the township, county, and school districts. Unpaid taxes or assessments become liens that generally must be paid at or before closing.

Who handles closing in Michigan

In Michigan, both title companies and real estate attorneys commonly handle closings. Title searches and title policies are standard parts of the process. Who pays for an owner’s policy varies by local custom and your purchase agreement; make sure your contract reflects your agreement.

Your Ortonville Title Process: Step by Step

1. Opening title: After your purchase agreement is signed, the title company or attorney opens your file and orders a title search.
2. Searching public records: The examiner reviews deeds, mortgages, liens, judgments, tax status, recorded easements, plats, and probate records tied to the property.
3. Title commitment: You receive a preliminary report listing conditions for issuing your policy and the exceptions to coverage. This is one of the most important documents you will review.
4. Clearing requirements: Items like mortgage payoffs or lien releases must be satisfied before closing. The parties work together to clear these.
5. Survey and inspection: If a survey is requested or required, it is reviewed for boundary issues, encroachments, and easements. You may add survey-related endorsements for added protection.
6. Closing and recording: After requirements are cleared, you sign documents, funds are disbursed, and the deed and mortgage are recorded with Oakland County.
7. Policy issuance: Your owner’s and lender’s policies are issued after recording.

Timing and Documents to Expect

Typical timing

A standard title search and commitment usually take several days. Clearing issues may add time. Complex problems like probate or unresolved liens can delay closing for weeks or even months.

Key documents you will see

• Title commitment or preliminary report
• Schedule A with the property description and effective date
• Schedule B showing exceptions to coverage
• Deed transferring ownership
• Final owner’s and lender’s title insurance policies issued after recording

Common Ortonville Title Issues and Fixes

Unreleased mortgages

Sometimes a prior mortgage was paid but the release was never recorded. The title company will require a recorded release or other proof before you close.

Tax delinquencies and special assessments

Unpaid taxes or assessments become superior liens that must be paid at closing. Confirm current-year taxes and any special assessments that could apply to the property.

Judgments, liens, and bankruptcies

Recorded judgments or liens against the seller may attach to the property. These generally must be paid or released. Bankruptcy matters often require additional documentation or court approval before closing.

Probate gaps and missing heirs

If a past owner died without proper probate, the chain of title can be unclear. Title companies may require probate documents, court orders, or curative actions. In complex cases, a quiet-title action may be needed.

Easements, restrictions, and encroachments

Recorded easements and covenants are typically exceptions to coverage. Many are routine, like utility easements, but some can affect how you use the property. Encroachments such as fences or decks might not be covered without a survey endorsement.

Fraud or recording errors

Forged documents, clerical mistakes, or defective deeds are core risks that title insurance is designed to address when they predate the policy and are not excluded.

Costs and Who Pays in Oakland County

Title insurance is a one-time premium paid at closing. The owner’s policy is typically based on the purchase price, and the lender’s policy is usually based on the loan amount. Who pays for the owner’s policy varies by local custom and negotiation. In some transactions the seller pays; in others the buyer does. The lender’s policy is usually a buyer cost when you finance.

To avoid confusion, confirm local practice early, then write your agreement to match your plan for who pays.

Smart Endorsements to Consider

• ALTA survey endorsement for certain boundary or encroachment matters
• Access or right-of-way endorsements to confirm legal access
• Zoning or condominium endorsements if applicable
• Mechanic’s lien or other specialized endorsements when relevant

Availability and pricing vary by insurer and state. Ask your title professional which options best fit your property and goals.

Practical Checklist for Ortonville Buyers

Before you sign the purchase agreement

• Ask which title company or attorney will handle title and escrow.
• Clarify who plans to pay for the owner’s policy and negotiate if needed.

During the transaction

• Review the title commitment as soon as it arrives. Pay close attention to Schedule B exceptions.
• Request payoff statements for existing mortgages and copies of lien release documents.
• Consider a current survey if boundaries, fences, or additions are present. If you do not order a survey, ask about a survey endorsement.
• Confirm property tax status and any pending assessments with the local township and county.

At closing

• Verify the deed details and that your owner’s policy will be issued showing you as the insured.
• Confirm endorsements you selected are included.

After closing

• Keep your deed, title policy, survey, closing statement, and endorsements in a safe place.
• If you discover a potential title problem, notify your title insurer promptly.

Claims and Policy Limits

Filing a claim

If you believe a covered title defect has caused a loss, contact your title insurer right away. They may cure the defect, settle the claim, or defend your title in court based on your policy.

Key limitations

Standard policies exclude some issues like zoning violations or unrecorded easements unless you add endorsements. Future issues that arise after your policy date are generally not covered unless specifically insured.

Final Thoughts

When you buy a home in Ortonville, a strong title process gives you peace of mind. Focus on early review of the title commitment, smart use of endorsements, and clear agreement on who pays for the owner’s policy. With the right guidance, you can close with confidence and protect your investment for the long term.

If you want a calm, project-managed approach from contract to close, reach out to Emily Ford for local guidance and vendor coordination that keeps your purchase on track.

FAQs

What is the difference between an owner’s and lender’s title policy?

• An owner’s policy protects your ownership interest, while a lender’s policy protects the mortgage lender. The lender’s policy does not protect your equity.

Do I need owner’s title insurance if my lender requires a policy?

• Yes. A lender’s policy only protects the lender. An owner’s policy protects your investment and lasts as long as you or your heirs have an interest.

Who usually pays for the owner’s policy in Oakland County?

• It varies by local custom and contract. Confirm early with your agent and title company, then spell it out in your purchase agreement.

What should I look for in the title commitment?

• Review exceptions on Schedule B, confirm the property details on Schedule A, and understand any requirements that must be cleared before closing.

Which endorsements are most common for Ortonville homes?

• Survey-related endorsements, access endorsements, and zoning or condominium endorsements are common. Ask your title professional which fit your property.