Costs & insurance
Title insurance
A one-time policy that protects against defects in a property's ownership history — liens, errors, or competing claims — issued in a lender's and an owner's version.
What does title insurance mean?
Title insurance guards against problems in a home's chain of ownership that a title search might miss: an old lien, a forged deed, an unknown heir. There are two policies: the lender's, which protects the bank and is usually paid by the buyer, and the owner's, which protects your equity and by Michigan custom is paid by the seller. One money-saving tip Michigan buyers often miss: ask the title company about the reissue rate when refinancing, which reuses an existing owner's policy and can shave hundreds off the cost.
Common questions
What does title insurance protect against?
Defects in a property's ownership history — old liens, forged deeds, unknown heirs, or recording errors that a title search might miss.
Who pays for title insurance in Michigan?
The buyer usually pays for the lender's policy; the seller by custom pays for the owner's policy that protects your equity.
What is the title reissue rate?
A discount for reusing an existing owner's policy when you refinance — it can save hundreds. Many Michigan owners never think to ask for it.
Related terms