What is Title Insurance?

Title insurance protects buyers and lenders from financial liabilities arising due to faulty title or hidden liens associated with the property. There are two types of title insurance policies. These are the Lender’s policy and the Owner’s Policy. 

Lenders approve a loan until they buy the lender’s title insurance or lender’s policy. This way the lenders are safeguarded against defaults arising due to the title. On the other hand, the owner’s policy protects the buyer in case they are unaware of any title defects or liens.

How much does Title Insurance Cost in North Carolina?

North Carolina title costs are on the lower side as compared to other states with a lot of real estate activity. 

A property of $200,000 will cost you $447 for an owner's policy. On the other hand, a flat $26 is charged for the lender's policy on each mortgage, bringing up the total to $473. 

Please note, these costs are excluding any endorsements, closing services, or liens. If your property needs any endorsement, it will add to more costs. 

How to Calculate Title Insurance Cost for North Carolina?

There are 5 cost brackets or slabs that you should take into account to calculate the total title insurance cost for your property. These are:

Property Cost Rate
Up to $100,000 $2.51
$100,001 to $500,000 $1.96
$500,001 to $2,000,000 $1.28
$2,000,001 to $7,000,000 $0.98
$7,000,001 $0.68

 

To give a perspective, these 3 use cases give you a complete idea of what to expect when closing in North Carolina. 

  • For a purchase price of a $250,000 property in North Carolina with a 20% down payment ($70,000), the cost of title insurance policy and lender's policy are $545 and $26 respectively. 
  • For a purchase price of a $250,000 property in North Carolina bought with full cash, the cost of the title insurance owner's policy is $545. 
  • For a purchase price of a $500,000 property in North Carolina with a 20% down payment ($100,000), the cost of title insurance owner's policy and lender's policy are $1,035 and $26 respectively.
  • For a purchase price of a $500,000 property in North Carolina bought with full cash, the cost of the title insurance owner's policy is $1,035. 
  • For a purchase price of a $1,000,000 property in North Carolina with a 20% down payment ($200,000), the cost of title insurance owner's policy and lender's policy are $1,615 and $26 respectively. 
  • For a purchase price of a $1,000,000 property in North Carolina bought with full cash, the cost of the title insurance owner's policy is $1,615.