Buying in Vermont’s Upper Valley and hearing a lot about title insurance? You are not alone. It is one of those closing items that can feel mysterious until you see how it protects your ownership. In this guide, you will learn what title insurance covers, how it works in Orange County, why an owner’s policy matters, and how closing customs differ from nearby New Hampshire. Let’s dive in.
What title insurance covers
Title insurance protects you from financial loss caused by past defects in a property’s ownership history. It focuses on issues that already exist, not future events.
Common protections include legal defense and payment of covered losses up to your policy limit. Coverage often applies when a hidden problem surfaces after you buy.
Examples of covered risks
- Forged or fraudulent deeds or signatures.
- Unknown heirs who claim ownership.
- Undisclosed or improperly released liens, like tax or mechanic’s liens.
- Missing or incorrect signatures in the chain of title.
- Recording errors or mis-indexed documents.
- Certain undiscovered easements or rights-of-way if they are not excepted by the policy.
What it does not cover
- Zoning, building code, land use, or environmental issues, unless you add a specific endorsement.
- Anything created after the policy date, like a new lien recorded after closing.
- Matters you knew about before closing that were not disclosed.
- Survey-related boundary disputes if the policy includes a standard survey exception and you do not add a survey endorsement.
Owner’s policy vs. lender’s policy
There are two different title policies at closing. Knowing the difference helps you protect your equity.
- Lender’s policy protects the lender’s interest up to the loan amount. Most lenders require it. Coverage declines as you pay down the mortgage and ends when the loan is paid off.
- Owner’s policy protects you, the buyer, up to the purchase price or policy limit. It is a one-time premium and stays in force as long as you or your heirs retain an interest.
Endorsements you can add
Endorsements are optional add-ons that expand coverage. Common choices include access, survey, subdivision, or limited zoning endorsements. Availability and cost vary by insurer and by state.
What it costs in Orange County, VT
Title insurance is a one-time premium paid at closing. The price depends on the property’s purchase price or loan amount, plus the insurer’s filed or negotiated rates. Other title-related charges, like search and exam, settlement, and recording fees, are often itemized separately.
As a rule of thumb, owner’s policy premiums often fall around 0.3% to 0.8% of the purchase price, but this range varies by state and rate schedule. Lender’s policies usually cost less because they cover only the loan amount. For accurate numbers, request quotes early and ask for a clear breakdown of all title and recording charges on the draft closing statement.
Who handles closings: Vermont vs. New Hampshire
Local practice in the Upper Valley can look a bit different from town to town and across the river.
- Vermont, including Orange County: Attorneys commonly prepare and review title work, handle settlement, and issue title policies. Title companies also operate in Vermont, but attorney involvement is a regular feature of many closings.
- New Hampshire: Both attorneys and title or settlement companies handle closings. Some transactions proceed with a settlement agent and no attorney present, while others include attorneys based on party preference, lender requirements, or complexity.
Lenders may have preferred settlement partners in one state but not the other. Confirm early who will perform the title search, issue the title commitment, and conduct the closing.
Recording and land records
After signing, the deed, mortgage, and any releases are recorded with the appropriate registry or land records office. Your title company or attorney typically manages recording and then issues the final policy once recording is complete.
How to read your title commitment
Before closing, you should receive a title commitment that outlines proposed coverage, exceptions, and items to resolve.
Focus on three parts:
- Exceptions: Items not covered by the policy, such as certain easements or restrictions.
- Requirements: Steps the seller or parties must complete to issue clear title, like lien releases.
- Survey or boundary items: If the commitment includes a survey exception, consider an updated survey and a survey endorsement for added protection.
Practical checklist for Upper Valley buyers
Use this quick list to stay on track in Orange County and nearby towns.
- Confirm lender requirements for a lender’s policy and any preferred title or closing agent.
- Decide who pays for each policy in your purchase agreement, or follow local custom if you prefer.
- Ask for the title commitment as soon as it is available and review exceptions with your agent or attorney.
- If boundary lines, driveways, or shared access matter, consider a current survey and a survey endorsement.
- Request an itemized estimate of title and recording charges before closing.
- Confirm who will record your documents and when you will receive proof of recording and your owner’s policy.
- Store your policy safely for future refinance or resale.
Relocating between NH and VT
If you are moving across the river, expect differences in who conducts the closing, document formats, and curative steps. The best approach is to confirm early with your lender and settlement team how the process will run in your specific town and county.
Common mistakes to avoid
- Skipping the owner’s policy because the lender has a policy. The lender’s policy protects the lender, not your equity.
- Ignoring exceptions in the title commitment. Always review and ask questions.
- Overlooking survey issues. If lines or access matter, consider a survey and the right endorsements.
- Waiting until the last minute to request quotes. Ask for itemized title and recording charges early.
Next steps
Title insurance is one of the quiet safeguards that makes homeownership smoother in the Upper Valley. When you understand what it covers, who handles closing, and how policies differ, you can close with confidence.
If you want help navigating local customs in Orange County or comparing Vermont and New Hampshire practices, reach out to Sandy Reavill. You will get clear guidance, introductions to trusted local partners, and a closing plan that fits your timeline.
FAQs
What is title insurance for Orange County, VT buyers?
- It is a one-time policy that protects you from covered losses caused by past title defects, with legal defense and indemnity up to the policy limit.
Do I need an owner’s policy if my lender requires one?
- Yes, because the lender’s policy protects only the lender’s loan; an owner’s policy protects your equity and right to use the property.
Who typically pays for the owner’s policy in Orange County?
- It is negotiable and guided by local custom and your purchase agreement; confirm payment terms in your contract.
Can I shop for title insurance in the Upper Valley?
- Often you can choose the owner’s policy insurer, though lenders may require or prefer certain providers for the lender’s policy.
How much does an owner’s policy cost in Vermont?
- Premiums are a one-time charge that often fall around 0.3% to 0.8% of the purchase price, plus any separate title and recording fees.
What endorsements should Vermont buyers consider?
- Common options include survey, access, and restrictions endorsements; availability and cost vary by insurer and state.
Who handles closings in Vermont vs. New Hampshire?
- Vermont closings often involve attorneys, while New Hampshire closings may be handled by attorneys or settlement/title companies depending on preference and lender rules.
When do I receive my title policy?
- Policies are issued at or after closing, often once the deed and mortgage have been recorded.
Does title insurance cover zoning or boundary issues?
- Standard policies do not cover zoning or many boundary issues; consider endorsements and a survey to address those risks.
