Buyers and sellers

Title insurance guide for NC buyers and sellers

Short, sourced answers to the questions buyers and sellers ask in the first weeks after going under contract.

Start here if you are buying, selling or refinancing in NC

Short answer

If you are buying a North Carolina home with a mortgage, your lender will almost always require a lender's title policy, and you decide whether to add an owner's policy to protect yourself. The premiums come from a filed state rate schedule, the buyer normally pays for title insurance under the standard NC purchase contract, and you may choose your title insurance provider.

Title insurance usually comes up at an awkward moment. You have just gone under contract, the due diligence clock is running, and you are being asked to sign forms that mention a title company you have never heard of. Some buyers are told the title company is already chosen. Some are handed a title preference sheet without an explanation. Many never hear the words "owner's policy" until they see the line on their Closing Disclosure.

This section is written for that moment. Each guide answers one question, in order of when it usually comes up, and links to the government or professional source behind every rule. You do not need to read them all. Pick the question you have today.

The buyer's questions, in the order they come up

1. Do I need title insurance in NC?

Which policy is required, which is optional, and what each one protects.

2. Can I choose my title company?

RESPA Section 9, the NC Department of Insurance guidance, and how choice really works with a lender and an attorney.

3. What is a title preference sheet?

The form your closing attorney may give you, and how to fill it in.

4. Is owner's title insurance worth it?

Coverage, exclusions, the enhanced homeowner's option and how long it lasts.

5. What will it cost?

Use the calculator built on the filed NC rate manual.

6. What happens at an NC attorney closing?

The attorney's job, the title agent's job and what you sign.

Who pays for what in a typical NC sale

Who pays which closing cost is a contract question, and North Carolina's Department of Insurance says that local practice, not law, decides who pays title premiums and that it can be a negotiating point. NC Department of Insurance, Title Insurance In most residential sales the parties use the Offer to Purchase and Contract, Standard Form 2-T, jointly approved by the North Carolina Bar Association and NC REALTORS. Its cost section makes the buyer responsible for the title search, title insurance, recording the deed, and the costs of any loan the buyer obtains, unless the parties change those terms. NC REALTORS and NCBA Standard Form 2-T

Default allocations under Standard Form 2-T (the parties can agree otherwise)
Cost	Usually paid by	Source of the rule
Title search and examination	Buyer	Form 2-T, responsibility for certain costs
Owner's and lender's title insurance	Buyer	Form 2-T; negotiable per NC DOI
Recording the deed	Buyer	Form 2-T
Deed preparation and excise tax on the deed	Seller	Form 2-T; N.C. Gen. Stat. 105-228.30
Paying off the seller's existing loans	Seller, from sale proceeds	Form 2-T

Sellers have their own reasons to care about title. If the seller's attorney or the buyer's attorney finds an old lien, an unrecorded payoff or a missing signature in the chain of title, it is usually the seller who has to fix it before closing. Starting early, and getting the title search ordered soon after the contract is signed, gives everyone time to clear problems rather than delaying the closing date.

Refinancing a home you already own

On a refinance there is no new owner, so there is no new owner's policy. The owner's policy you bought at purchase stays in effect while you own the property. NC Department of Insurance, Title Insurance Your new lender will want its own lender's policy, and if your property was insured within the last fifteen years the filed rate manual allows a reissue rate of half the regular rate up to the amount of the prior policy, when the prior policy or settlement statement is provided. NCTIRB rate manual, effective Feb 1, 2026 Our refinance guide walks through it.

Three things to do this week

Find your Loan Estimate, page 2. Section C, "Services You Can Shop For," lists the title services you can shop for with your lender. CFPB, Shop for title insurance
Decide on an owner's policy. If you want one, tell your closing attorney so it appears on your Closing Disclosure as "Title, Owner's Title Policy (optional)." CFPB TRID title insurance factsheet
Tell your attorney your title agent preference. If you would like Ironwood, write "Ironwood Title Group" on the attorney's title preference sheet or email the attorney's office. If you prefer another provider, say that instead.

Keep reading

If you are selling

Sellers in North Carolina usually do not pay for the buyer's title insurance. Under Standard Form 2-T the buyer pays title search and title insurance unless the contract says otherwise, while the seller pays to prepare the deed, the excise tax on the deed and the cost of releasing existing liens. NC REALTORS and NCBA Standard Form 2-T The excise tax is $1 for each $500 of value, paid before the deed is recorded. N.C. Gen. Stat. 105-228.30

A seller cannot require a buyer to use a particular title insurance company as a condition of the sale when the buyer is using a federally related mortgage loan. 12 U.S.C. 2608 (RESPA Section 9) If you have the owner's policy from when you bought, give a copy to your attorney; a recent prior policy can lower the buyer's premium under the reissue rule.

Questions people ask

Who usually pays for title insurance in North Carolina?

Under Standard Form 2-T the buyer is responsible for title search and title insurance costs unless the parties agree otherwise. The NC Department of Insurance notes that who pays is a matter of local practice and negotiation, not law.

Does the seller need title insurance?

The seller does not buy a new policy when selling. The seller's job is to deliver title as promised in the contract, which can mean clearing liens or other problems the attorney's title search turns up.