Many questions arise when purchasing or selling Tennessee property, related to title insurance. Affordable Closings has dedicated this page to providing clarification on the title insurance process in Tennessee.
Title Defined:
When you purchase a home in Tennessee, you are actually buying the title to the property, the right to occupy and use such property. Property title, in real estate, is defined as the sum of legally recognized rights to the possession and ownership of property.
Why you need Title Insurance when Purchasing Tennessee Property
The need for title insurance may not be as evident as the need for homeowner’s insurance, yet title protection is essential to protect your property investment. Your property title may be limited by the rights and claims asserted by others, which may result in reduced use and enjoyment of your property and possibly financial loss.
Title Insurance protects the property purchaser against existing hazards or defects to the title. The title insurance premium is a one time expense, paid at closing.
How the Title Process Works – From the Tennessee Property Data Search to Issuance of Title Insurance
It is the goal of the title insurer to eliminate risk prior to issuing the insurance on the property. To reduce its risk, the title company begins the title search process by performing a review of Tennessee property data, starting with Tennessee public land records.
* Common findings of concern, based on the initial property data search include:
- Tennessee deeds, wills, and trusts containing improper wording or incorrect names.
- Outstanding Tennessee mortgages or judgments, or a lien against the property due to unpaid taxes
- Easements allowing construction of a road or utility line
- Pending legal action against the property
- Incorrect notary acknowledgements
Even after a thorough search of the property data, title hazards may remain and emerge after closing, exposing the insurance company to expenses and title issues. Examples of such hazards include the following:
- A forged signature on the deed
- An unknown heir of the previous owner claims rights to the property
- Instruments executed using an expired or fabricated power of attorney
- Mistakes in the Tennessee public records
The buyer is protected against these and other covered title hazards. The title insurer bears the costs of protecting the insured against such title attacks. The insurer will either perfect the title or pay valid claims. All such protection is covered when you purchase title insurance; the one time title premium covers it all.
 Click Here to visit our Buyer’s Page to learn how to prepare for a Tennessee closing as a realty purchaser
Click Here to visit our Seller’s Page to learn see our Tennessee Seller Property Closing instructions
We welcome your title related questions. Contact Affordable Closings to inquire about obtaining title insurance or with any questions you may have.
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