What does a title company do?
A title company searches and examines the public record for a property, identifies liens, judgments, easements and other matters that affect title, issues title insurance through an underwriter, and coordinates the closing, disbursement and recording.
On a typical file that means ordering the property, tax and judgment searches, issuing a title report with requirements and exceptions, working with the parties to clear what can be cleared, preparing settlement figures, disbursing funds and submitting documents for recording.
How much does title insurance cost?
Title insurance premiums are calculated from the insured amount using a bracketed rate schedule, so the premium scales with the purchase price or loan amount rather than with hours worked. Search, settlement and recording charges are separate line items.
Rates and the way they are filed vary by state. Our estimator itemizes an owner's premium, a lender's premium where financing is involved, search and settlement charges and estimated recording costs so you can see how the total is built.
Do I need title insurance?
A lender's policy is generally required whenever a purchase or refinance is financed. An owner's policy is optional in most transactions but is the only coverage that protects the owner's own interest in the property.
What does title insurance cover?
Title insurance covers loss from certain defects in title that existed before the policy date — such as undisclosed liens, recording errors, forged or defective conveyances and some ownership claims — subject to the policy's terms, exclusions and exceptions.
It is not a maintenance or hazard policy: it looks backward at the chain of title rather than forward at physical condition. Matters listed as exceptions in the policy schedule are not covered.
What is owner's title insurance?
An owner's policy insures the buyer's interest in the property against covered pre-existing title defects, generally for as long as the insured holds an interest, subject to the policy terms.
What is lender's title insurance?
A lender's policy insures the lender's interest in the mortgage lien, usually in the loan amount, and typically decreases as the loan is paid down. It protects the lender only.
What is the difference between owner's and lender's title insurance?
A lender's policy protects the lender's lien position up to the loan amount; an owner's policy protects the owner's equity in the property. Buying a lender's policy does not give the owner any coverage.
When both are issued at the same time on the same transaction, the lender's policy is generally charged at a reduced simultaneous-issue rate.
Who pays for title insurance?
Who pays depends on the state, local custom and the contract. In New York and New Jersey the buyer commonly pays the title premiums on a purchase, but the contract controls.
How long does a title search take?
A residential title search is commonly completed within a few business days, though timing depends on the county, the searches required and how quickly municipal responses come back.
Commercial, multi-parcel and estate-related files often take longer because more records, entity documents and jurisdictions are involved.
What happens during a title search?
The searcher examines deeds, mortgages, assignments, tax records, judgments and liens affecting the property and the parties, and reports anything that must be resolved before or at closing.
What does a title company do at closing?
As settlement agent, the title company collects and disburses funds according to the settlement statement, handles the applicable closing documents, satisfies title requirements and submits documents for recording, then issues the policy.
Can I choose my own title company?
Yes. Under federal law a lender cannot require you to use a particular title company, and the party paying for the policy generally selects the title agency, subject to the terms of the contract.
How much are closing costs?
Closing costs typically include title premiums, search and settlement charges, recording fees and applicable transfer taxes, plus lender and escrow items when financing is involved. The mix varies substantially by state and transaction.
Our estimator separates title charges from government charges so you can see which parts are set by the rate schedule and which are set by the jurisdiction.
Do cash buyers need title insurance?
Cash buyers are not required to buy title insurance because there is no lender to demand it, which also means no policy exists unless the buyer purchases an owner's policy. Without one, the buyer absorbs any covered defect personally.
Do I need title insurance when refinancing?
A refinance generally requires a new lender's policy because the new loan needs its own insured lien position. Your existing owner's policy remains in place and does not need to be repurchased.
Where a qualifying prior policy exists, the refinance may be eligible for a reduced rate under the applicable state rate schedule. Eligibility is verified by the title team.
How does title insurance differ by state?
Rates, required searches, closing customs and transfer taxes are set at the state — and sometimes municipal — level, so the same purchase price can produce different charges in different states.
Some states use filed or promulgated rates, others use rate schedules filed by each underwriter. Practice also differs on who conducts the closing: New York transactions are attorney-driven, Connecticut generally requires a Connecticut attorney to certify title, and New Jersey closings are commonly run by the settlement agent.
Does Hudson Titles provide nationwide title services?
Yes. Hudson Titles is a nationwide title and closing services provider, with a primary market focus on New York, New Jersey, Connecticut and the greater Tri-State area.
What states does Hudson Titles serve?
Hudson Titles handles transactions nationwide and concentrates its own offices and day-to-day practice in New York and New Jersey, with Connecticut and the wider Tri-State area as a core service area.
Outside the Tri-State area, files are placed through our national underwriter relationships and coordinated with local counsel or agents where a jurisdiction requires it. Share the property address and our team will confirm capability for that state.
Can Hudson Titles handle transactions outside the Tri-State area?
Yes. Out-of-state and multi-state transactions are coordinated centrally through our national underwriter relationships, with one point of contact regardless of where the property sits.
