Purchase
Title insurance for a North Carolina home purchase
Two policies, one premium rule, and the decisions to make in the first two weeks of your contract.
Title insurance when you buy a home in NC
On a typical North Carolina purchase with a mortgage, two policies are issued: a lender's policy for the loan amount, which the lender requires, and, if you choose, an owner's policy for the purchase price. Issued together, they cost one premium on the owner's coverage plus a $28.50 charge per loan policy under the filed rate manual. The buyer normally pays under Standard Form 2-T.
Most of the decisions on a purchase are made in the first week or two after the contract. That is when the attorney's office opens the file, the lender issues its Loan Estimate and list of providers, and you decide whether to add an owner's policy and which title agent you prefer. Waiting until the Closing Disclosure arrives leaves little room to change anything.
Worked example on a $350,000 purchase
A buyer purchases a home for $350,000 with a $315,000 loan and chooses a standard owner's policy. Using the rate manual effective February 1, 2026:
| Line | How it is figured | Amount |
|---|---|---|
| Owner's policy premium | First $100,000 at $2.78 per thousand = $278.00; next $250,000 at $2.17 per thousand = $542.50 | $820.50 |
| Lender's policy | Simultaneous issue charge, PR-4 | $28.50 |
| Total title insurance premium | Before any endorsements, commitment premium or reissue credit | $849.00 |
| With enhanced owner's coverage | Add 20% of the regular rate on $350,000 ($164.10) | $1,013.10 |
NCTIRB rate manual, effective Feb 1, 2026 The figures do not include the attorney's fees for the title search, opinion and closing, which the manual says are additional to the premium.
If the seller has a recent owner's policy
Ask the seller, through the agents or the attorney, for a copy of their owner's policy or their closing statement. Under rule PR-5, if a prior policy was issued on the identical property within fifteen years and is provided to the insurer, the rate is 50% of the regular rate up to the prior policy amount, with regular rates above it. NCTIRB rate manual, effective Feb 1, 2026 On a home that last sold for $250,000 and now sells for $350,000, the reissue credit applies to the first $250,000 of coverage. The calculator handles this if you tick the prior policy box.
There is a separate builder rule. When a prior policy was issued to a subdivider, developer or builder within fifteen years, the reissue rate can apply up to the sales price of the individual lot or unit. New construction buyers should ask their attorney whether it applies.
Purchase checklist for buyers
- 1
Look at Loan Estimate section C
Title services you can shop for are listed there; the lender's list of providers comes with it. You may use a provider not on the list if the lender agrees.
- 2
Decide on the owner's policy
Optional, but it is the only policy that protects you. Choose standard or enhanced.
- 3
Name your title agent
Use the attorney's title preference sheet or email the attorney's office.
- 4
Gather any prior policy
A seller's policy from the last fifteen years may lower the premium.
- 5
Compare your Closing Disclosure
Check the title lines against your expectations and ask about differences, keeping in mind the disclosure rules on how simultaneous premiums are shown.
For sellers
Sellers in North Carolina usually pay for deed preparation and the state excise tax of $1 per $500 of consideration, and they are responsible for delivering title as the contract requires. N.C. Gen. Stat. 105-228.30 NC REALTORS and NCBA Standard Form 2-T Providing a copy of your owner's policy early can help the buyer's attorney and may lower the buyer's premium. If the title search reveals an old lien, a judgment, or a document that needs correcting, your attorney will tell you what is needed to clear it.
Where title fits on a purchase timeline
- 1
Contract signed
The Offer to Purchase and Contract (Form 2-T) sets the due diligence period and assigns title costs to the buyer unless changed. NC REALTORS and NCBA Standard Form 2-T
- 2
Attorney engaged
The buyer's closing attorney receives the contract and asks for the title preference. Tell them in writing if you choose Ironwood.
- 3
Title search and opinion
The attorney searches the county records and gives a preliminary title opinion.
- 4
Commitment
We issue a commitment for the owner's and lender's policies with requirements and exceptions.
- 5
Clearing requirements
Payoffs, releases, estate documents or corrections are arranged before or at closing.
- 6
Closing and recording
The attorney closes, records and disburses, then gives the final opinion.
- 7
Policies issue
We issue the final owner's and lender's policies.
The earlier the title preference is known, the less chance a different provider has already been engaged by the time a buyer speaks up.
Owner's coverage amount
The owner's policy amount is normally the purchase price. If you are building or improving after closing, ask the attorney whether a larger amount or a later increase makes sense; the premium is calculated on the policy amount using the filed tiers. NCTIRB rate manual, effective Feb 1, 2026 You can test different amounts in the calculator.
Common surprises, and how they are handled
A deed of trust from a loan that was paid years ago but never cancelled of record. A judgment against someone with the same name as the seller. An unrecorded HOA assessment. A driveway that crosses a neighbor's line. None of these is unusual, and most are resolved before closing: a payoff letter and cancellation, an affidavit distinguishing the seller from the judgment debtor, an HOA statement, or a survey exception. The point of the search, the commitment and the owner's policy together is that problems are found or insured, not that they never exist.