Title Insurance In Franklin: Why It Matters For Buyers

You finally found a Franklin home that fits. Now you need to make sure your ownership is secure. Title insurance can feel like one more line item at closing, but it is the quiet protection that keeps your investment safe from past issues you cannot see. In this guide, you will learn what title insurance covers, how it works in Tennessee, local Franklin factors to watch, and the steps to take before you sign. Let’s dive in.

What title insurance covers

Title insurance protects you from losses caused by defects in the property’s title that existed before your policy date. These defects can include undisclosed liens, forged deeds, clerical errors, boundary problems, or unknown heirs. It does not cover future physical damage to the property.

Owner vs. lender coverage

• Owner’s policy: Protects your ownership interest and equity up to the policy amount, typically the purchase price. Coverage lasts as long as you or your heirs retain an interest in the property.
• Lender’s policy: Protects the lender’s security interest up to the loan amount. This does not protect your equity. If you finance your purchase, the lender will require this policy.

Coverage, exceptions, and any added protections appear in your title commitment and your final policy. Common exceptions include recorded easements, restrictive covenants, and items revealed on a current survey.

How a policy gets issued in Franklin

A title company or closing attorney examines the public record to confirm the chain of ownership and uncover issues that must be resolved before closing.

• Title search: The examiner reviews deeds, mortgages, judgments, tax records, probate filings, and easements. In Franklin, much of this work relies on Williamson County records, including the Register of Deeds, Assessor of Property, and Trustee.
• Chain of title: Ownership is traced through recorded deeds to identify breaks, defects, or missing links.
• Title commitment: Issued before closing. It lists requirements to meet and exceptions to coverage. Review this carefully.
• Closing and issuance: Outstanding liens are paid or released, required documents are recorded, and the policy is issued after closing and recording.

Consumer resources from the American Land Title Association and the Consumer Financial Protection Bureau align with this process and offer helpful definitions and examples.

Who chooses and pays in Tennessee

In Tennessee, both the choice of title company and who pays for the owner’s policy are negotiable and set in the purchase contract. Custom varies by county and even by transaction. In Williamson County, closings commonly use title companies for search, escrow, and settlement, though attorneys sometimes handle closings.

To avoid confusion, your contract should clearly name the title or escrow agent or outline how the parties will select one. Clarify early who pays for the owner’s policy so expectations match your agreement.

Franklin issues to watch on title

Franklin’s history and growth create a few recurring themes on title work. These are not problems by default, but you will want to understand them and how they show up in a title commitment.

• Historic district restrictions and recorded preservation easements for certain areas or properties
• Utility easements and rights of way, including those from older subdivision plats
• Restrictive covenants or HOA documents recorded with subdivisions
• Clerical inconsistencies in older deeds, especially for parcels that evolved from rural or farm tracts
• Undischarged mortgages, judgment liens, or federal and state tax liens
• Boundary discrepancies or encroachments where older plats differ from current improvements

Your title partner can explain each item and whether an endorsement or curative action is available.

Read your title commitment

Your title commitment is your roadmap to coverage. Focus on these sections:

• Requirements: Steps that must be completed before your policy issues, such as paying off an old deed of trust.
• Exceptions: Items your policy will not cover unless cleared or endorsed. Watch for easements, covenants and restrictions, rights of way, tax liens, pending legal actions, and survey-related matters.
• Policy forms and endorsements: Ask which underwriter backs your policy and which endorsements make sense for your property.

Endorsements to consider

Availability and names vary by insurer and property. Ask your title agent what applies in Tennessee and for this parcel.

• Survey endorsement: Helps address differences between recorded documents and what a current survey shows.
• Access or zoning endorsements: Provide added assurance about public access or certain zoning matters.
• Mechanic’s lien endorsements: Useful if recent or pending work could create liens not yet recorded.
• HOA or CC&R endorsements: Helpful when association covenants are central to how you plan to use the property.

Policies typically exclude risks that arise after your policy date or unrecorded matters unless an endorsement addresses them.

A Franklin buyer checklist

Use this step-by-step list to stay on track from contract to closing.

1. At contract:

   • Confirm who selects the title company or closing attorney and who pays for the owner’s policy.
   • If continuity matters, ask the seller or listing agent about their preferred title partner. Remember this is negotiable.

2. Selecting a title partner:

   • Verify Tennessee licensing and ask about experience with Williamson County records and City of Franklin recording practices.
   • Ask about title search turnaround and when you will receive the title commitment.
   • Request a written estimate of title and settlement fees and which costs are buyer vs. seller.
   • Confirm the underwriter, available endorsements, and expected additional costs.
   • Review escrow procedures, secure wire instructions, and how funds are managed.
   • Ask about communication, points of contact, references, and E&O and fidelity coverage.

3. During due diligence:

   • Review the title commitment promptly and ask for plain-language explanations of every exception.
   • Order a survey if boundaries, fences, or recent additions are a concern or if your lender requires it.
   • Obtain HOA, architectural, or historic district documents early and review any restrictive covenants.
   • Confirm tax payment status with the Williamson County Trustee and check for county or municipal assessments.

4. If an issue appears:

   • Ask for a written explanation and plan to clear the item.
   • Decide who will address the issue and how, according to the contract.
   • Consider endorsements that mitigate any remaining concerns.

5. At closing:

   • Review final title documents and your Settlement Statement or Closing Disclosure.
   • Confirm that both owner’s and lender’s policies will be issued and mailed after recording.
   • Keep copies of all closing documents and your recorded deed.

When to loop in your agent

Bring your agent into the conversation at key points to keep your transaction on track.

• Contract negotiation involving title selection, who pays for the owner’s policy, and timelines
• On receipt of the title commitment to flag exceptions and coordinate with the seller to clear defects
• If any title defect, HOA issue, or covenant concern appears
• For closing logistics such as wire instructions, escrow details, or changes to settlement numbers

Your title company and, if needed, an attorney will handle coverage and legal questions. Your agent coordinates people, documents, and timing so you can move with confidence.

Next steps for Franklin buyers

Choosing and understanding title insurance is one of the smartest moves you can make before closing. It protects your ownership from past issues, clarifies how the property can be used, and reduces surprises after you move in. With the right title partner and a clear process, you can close on your Franklin home knowing the ground under your feet is secure.

If you want a steady guide through contract terms, title review, and closing day details, reach out to Bill Diebenow for local, process-driven representation.

FAQs

Do I need title insurance if I have a mortgage in Tennessee?

• Yes. Your lender will require a lender’s policy, and you should strongly consider an owner’s policy because only it protects your equity and ownership.

Who usually pays for the owner’s policy in Franklin?

• It is negotiable in Tennessee and set in the purchase contract. Local custom varies, so confirm the agreement early to avoid surprises.

Is title insurance a one-time cost for buyers?

• Yes. You pay the premium once at closing. The owner’s policy lasts as long as you or your heirs retain an interest in the property.

What happens if a title problem appears after closing?

• If the issue is covered, you can file a claim under your owner’s policy. The insurer will investigate and cure the defect or compensate you up to policy limits.

Should I order a survey for a Williamson County home?

• Often yes. A survey can reveal boundary or encroachment issues that may not appear in recorded documents and can support certain endorsements.

What exceptions should I watch for in a title commitment?

• Look for recorded easements, covenants and restrictions, rights of way, tax liens, pending actions, and any survey-related matters listed as exceptions.