Are you getting ready to buy a home in Sunbury and seeing “title insurance” on your estimate? It is easy to gloss over, but it protects you from some of the most expensive surprises a homeowner can face. You want clarity before you write an offer and peace of mind long after closing.
In this guide, you will learn what owner’s and lender’s title insurance cover, what is typically excluded, the most common title risks in Sunbury and Delaware County, and how title work fits into a Central Ohio closing. You will also get practical checklists and negotiation tips you can use right away. Let’s dive in.
Title insurance basics in Sunbury
Title insurance is a one-time insurance product that protects you from covered losses if a title defect surfaces later. It is different from homeowners insurance, which covers physical damage to the property, and different from inspections or surveys.
In most mortgage purchases, there are two separate policies:
- Owner’s title insurance. Protects your ownership up to the purchase price for as long as you or your heirs hold an interest.
- Lender’s title insurance. Protects the lender’s lien and its priority up to the loan amount for as long as the loan exists.
Sunbury and the wider Delaware County area continue to grow, so recorded plats, subdivision covenants, special assessments, and recent contractor activity are common. Public records are thorough, yet mistakes, omissions, or post-closing claims can still happen. Title insurance transfers much of that financial and legal risk to the title company.
Owner’s vs. lender’s coverage
Both policies are based on a title search and a title commitment that outlines what the title company will and will not cover. You pay the premium once, at or before closing.
What an owner’s policy typically covers
An owner’s policy protects your right to own and use the property against covered defects that existed before closing, including:
- Forged or fraudulent signatures on prior deeds or documents.
- Undisclosed or missing heirs who later claim an ownership interest.
- Clerical errors in public records or misrecorded documents.
- Unknown liens or judgments that were not discovered or released.
- Improperly executed deeds or defective conveyances.
- Conflicting wills or probate issues that cloud title.
- Hidden easements or rights of way not specifically excepted on the commitment.
Common exclusions on owner’s policies
Standard policies have exclusions. You can sometimes add endorsements to expand coverage, but typical exclusions include:
- Matters visible on inspection, such as encroachments or boundary issues, unless you obtain a survey endorsement.
- Zoning or building code violations unless specifically endorsed.
- Environmental issues and many unrecorded restrictions.
- Problems that arise after the policy date, except where an endorsement applies.
What a lender’s policy covers
A lender’s policy protects the lender, not your equity. It covers the lender if a covered title defect undermines its mortgage lien or reduces its priority. Coverage equals the loan amount and generally decreases as the loan is paid down. To protect your ownership and equity, you need an owner’s policy.
Endorsements that matter in Central Ohio
You can tailor coverage with endorsements. Common options include:
- Survey endorsement to limit standard survey exceptions when a new or acceptable survey exists.
- Access endorsement to insure legal access to the land.
- Zoning endorsement for specific zoning-related risks.
- Gap endorsement to cover the time between the commitment and when documents record.
Each endorsement adds cost, but the right ones can close meaningful gaps.
Sunbury title risks to watch
While every property is unique, certain issues tend to appear in Sunbury and across Delaware County:
- Outstanding mortgages or liens. An old mortgage that was never properly released can cloud title.
- Property tax liens and special assessments. County and municipal liens have priority and must be cleared. Special assessments for improvements like sidewalks or sewers can attach to the property and may be billed after closing.
- Mechanic’s liens from contractors. New builds and recent renovations carry risk if a contractor or subcontractor was not paid. Liens can be filed after closing for work completed before the sale.
- Easements and rights of way. Recorded utility or drainage easements can limit where you build or fence.
- Restrictive covenants and HOA rules. Many Sunbury subdivisions have recorded Covenants, Conditions and Restrictions. Unpaid dues can lead to association liens.
- Boundary or legal description errors. Lot line discrepancies and mistaken metes-and-bounds descriptions can lead to disputes.
- Probate gaps or unknown heirs. Older rural properties may carry unresolved estate issues.
- Mineral or oil and gas interests. Severed mineral rights or recorded leases can affect ownership or surface use.
- Municipal code or zoning non-compliance. Orders or violations can affect use and marketability. Standard policies often exclude these unless endorsed.
How title work fits into Central Ohio closings
Here is how the process typically works in Sunbury and Delaware County:
- Title search and exam. After you go under contract, the title company searches the public record for deeds, mortgages, easements, and liens.
- Title commitment. You receive a preliminary report listing requirements to clear and exceptions that will remain.
- Clearing conditions. The seller and the title company coordinate payoffs and releases to deliver marketable title.
- Closing and recording. The deed and mortgage are recorded at the county Recorder’s office. Final owner and lender policies are issued.
Local public offices you may hear about include the Recorder, Auditor, and Treasurer for recorded documents and property taxes. Sunbury municipal offices may have data on permits, utilities, zoning, or special assessments.
Who pays for the policies
- Lender’s policy. Lenders require it, and buyers usually pay it as part of loan closing costs.
- Owner’s policy. Payment is a matter of market custom and contract negotiation. In Central Ohio, practices vary by neighborhood and price point. Confirm the current custom for your specific Sunbury transaction and negotiate this in your offer if you have a preference.
Pre-offer clarity checklist for Sunbury buyers
If you want fewer surprises before you write an offer, consider these steps:
- Ask for any seller-provided documents: recent title commitment, deed, survey, HOA statement, or permits for recent work.
- Request a pre-offer title check or a quick search summary through your agent or the title company, understanding it may be a paid service.
- For recent renovations or new construction, request lien waivers or paid invoices from contractors. Consider a mechanic’s lien search.
- Review available HOA documents and recorded restrictions for use rules, fees, and architectural guidelines.
What to ask the title company before closing
Use this quick list during your title review period:
- Which exceptions appear on the commitment, and how do they affect my use of the property?
- Are there any liens or unreleased mortgages that need to be cleared, and who will handle them?
- Does a current survey exist, and should I order one? Is a survey endorsement recommended for this lot?
- Are there outstanding or pending special assessments or municipal items I should budget for?
- What is the estimated cost for the owner’s and lender’s policies, endorsements, and closing fees?
Real-world Sunbury scenarios
Here are practical examples that show how coverage can come into play:
- New construction with unpaid subcontractor. A subcontractor files a mechanic’s lien months after closing. The lender’s policy protects the lender’s mortgage. Your owner’s policy may protect you if the lien relates to pre-policy work and coverage applies. Best practice is to collect lien waivers and confirm contractor payments before closing.
- Older farmhouse with an undisclosed heir. A family member claims an interest due to a probate error. An owner’s policy commonly covers the legal defense and any covered loss if the defect predates your policy.
- Subdivision lot with easement and assessment. Your commitment shows a recorded utility easement and a pending special assessment. The easement will likely remain as an exception. You evaluate how it affects your plans and budget for the assessment at closing.
Smart negotiation tips for your offer
You can reduce risk and keep your deal on track with clear contract terms:
- Add a title contingency with a set deadline to review the commitment and require the seller to cure defects.
- Request a seller-paid owner’s policy if that aligns with local custom or your strategy. Treat it as negotiable.
- Set a deadline for the seller to deliver an existing survey, or reserve the right to order one with a survey endorsement.
- Include an HOA document review contingency when applicable.
Final takeaways for Sunbury buyers
Title insurance is a one-time purchase that can protect you from costly surprises long after closing. In Sunbury and across Delaware County, it helps address risks tied to recorded liens, probate gaps, and other hidden issues, while the right endorsements can extend protection to specific concerns like access or survey matters. Focus on a clean title commitment, clear contingencies, and the right policy mix for your situation.
If you want local guidance on what to ask for and how to negotiate title terms in your Sunbury offer, our team is here to help. Connect with Keys + Company to talk through your plan.
FAQs
Do Sunbury buyers need both owner’s and lender’s title insurance?
- The lender’s policy protects only the lender’s lien, so you would add an owner’s policy to protect your equity and ownership interests.
How often do I pay for owner’s title insurance in Ohio?
- You pay the premium once at or before closing, and coverage lasts as long as you hold an interest in the property.
What Sunbury risks are most common with title issues?
- Common risks include unpaid taxes or assessments, unreleased mortgages, mechanic’s liens on recent work, recorded easements, and HOA-related liens.
Will a standard owner’s policy cover a boundary dispute later on?
- Standard policies usually exclude survey or boundary issues unless you have a survey endorsement or related coverage in place.
Who usually pays for the owner’s policy in Sunbury, OH?
- It varies by transaction and local custom, so confirm current practice and negotiate payment in your purchase contract.
