Frequently Asked Questions About Title Companies

What does a title company do? 

A title company makes sure the property’s ownership is clear and legitimate. We research public records, identify and resolve issues like liens or unpaid taxes, issue title insurance, and handle the closing where funds and documents are exchanged. 

What exactly is title insurance, and why do I need it? 

Title insurance protects you and/or your lender from financial loss due to title problems that weren’t discovered before closing—such as unknown liens, recording errors, or ownership disputes. 

What fees may a buyer expect at closing?  

Costs vary by purchase price, loan amount, transaction type, and location of the subject property.  Customarily in Kentucky, the buyer is responsible for any lender associated fees, title settlement fee, owner’s title insurance (if desired), lender’s title insurance (if required), and recording fees. All fees are itemized on the Closing Disclosure. 

Who chooses the title company? 

In most cases, the buyer has the right to choose the title company, though contracts or local customs may influence this. 

What happens at closing? 

At closing, required closing documents are signed, funds are exchanged, and ownership is transferred. The title company then ensures everything is properly executed and recorded with the county.

What is the difference between owners and lenders insurance? 

Owners insurance protects the buyer from past title problems for as long as they own the property, while lender’s title insurance protects only the mortgage lender until the loan is paid off. Lender’s insurance is usually required, but it does not protect the homeowner. 

What is included in our settlement fee? 

This fee includes a title examination of the property in the county land records, our compiling of the settlement statement(s), and our escrow and disbursement of the transaction funds.