Buying a home in Plymouth should feel exciting, not confusing. Yet the moment title insurance comes up, it can feel like you’ve stepped into a different language. You want to protect your investment and close on time without surprises. In this guide, you’ll learn exactly what title insurance covers, how Michigan closings work, which endorsements matter in Plymouth, and what steps to take so your ownership is secure. Let’s dive in.
Owner’s vs. lender’s coverage
Title insurance comes in two main forms. Understanding who each policy protects will help you make smart choices at closing.
Owner’s policy
An owner’s title policy protects your ownership interest from covered title defects that existed before closing. Examples include hidden liens, forged signatures, defective deeds, or undisclosed heirs. You pay a one-time premium at closing, and coverage lasts as long as you or your heirs have an interest in the property. If a covered issue appears later, the policy typically covers legal defense and financial loss up to the policy limit, which is commonly your purchase price. Guidance on how owner’s coverage works is available from the American Land Title Association and the Consumer Financial Protection Bureau.
Lender’s policy
A lender’s title policy protects the mortgage lender’s security interest, not your equity. It is usually required when you finance a purchase and is issued in the amount of the loan. This policy will not pay you if there is a covered title loss. The premium is a one-time cost at closing, and a new lender policy is typically required if you refinance later.
Key takeaway
- Owner’s policy protects you.
- Lender’s policy protects the lender.
- Both are one-time premiums at closing, not ongoing like homeowners insurance.
For consumer-friendly overviews of coverage, visit the CFPB’s guidance and the Michigan Department of Insurance and Financial Services.
Why Plymouth buyers need title insurance
Plymouth’s mix of established neighborhoods, condos, and newer subdivisions means title records can span decades and ownership types. In Wayne County, common issues that a title search may uncover include:
- Older chains of title involving family transfers or probate, which can hide missed conveyances.
- Municipal or special assessment liens for streets, sewers, or water improvements, plus unpaid property taxes.
- Utility easements, recorded and unrecorded rights of way, and subdivision restrictions that affect use.
- Condo or HOA covenants and unpaid association dues.
- Judgments, child-support liens, or contractor and mechanic’s liens recorded against prior owners.
- Split parcels, boundary discrepancies, or encroachments in older neighborhoods.
Public land records are maintained by the Wayne County Register of Deeds. Recording procedures and turnaround times are set at the county level, so your title company will coordinate recording after closing. State oversight and consumer guidance come from Michigan DIFS, and industry practices are supported by the American Land Title Association.
How a Michigan closing works with a title company
Timelines vary with loan approval and property complexity, but many Michigan purchases close within 30 to 45 days. Here is the typical path for a Plymouth transaction.
1) Contract and earnest money
You and the seller sign a purchase agreement. Earnest money is usually deposited into an escrow account managed by the title company or your broker.
2) Title order and search
Soon after acceptance, the title company is engaged to complete a title search. They review records at the county and other offices to find liens, easements, judgments, probate matters, and similar items.
3) Title commitment
The title company issues a title commitment that lists two key parts:
- Requirements to clear before issuing the policy, such as paying off mortgages or releasing liens.
- Exceptions that the policy will not cover, such as easements, covenants, or recorded restrictions.
You, your agent, and your lender review this commitment. This is often your first detailed look at known title matters.
4) Clearing items and surveys
The title company obtains payoff statements, release documents, and other items to clear requirements. Your lender may require a survey or accept an older survey or municipal certificate. If no new survey is ordered, a survey-related endorsement may be available to reduce risk.
5) Clear-to-close
When your lender is satisfied, they issue a clear-to-close. The title company prepares the final closing package and a Closing Disclosure or HUD-1 as applicable.
6) Closing and disbursement
You sign documents at the title company or an attorney’s office. The title company collects your funds and the lender’s funds, then disburses payoffs, commissions, and seller proceeds.
7) Recording and policy issuance
The deed and mortgage are recorded with the county. After recording, the title company issues the owner’s and lender’s policies. Policies are often delivered electronically or by mail within days to weeks.
8) Post-closing follow-up
The title company confirms recording, tracks any remaining releases, and finalizes disbursements. If a covered title issue surfaces later, you file a claim with the title insurer. For an overview of the process, see consumer resources from the CFPB and industry guidance from ALTA.
How to read your title commitment
Your title commitment deserves careful attention. Focus on two sections:
- Requirements: What must be satisfied to issue your policy. Examples include mortgage payoffs or recorded lien releases.
- Exceptions: Items the policy will not cover. These regularly include easements, subdivision restrictions, and other recorded encumbrances.
Ask for the commitment as soon as it is available and review it with your agent or an attorney. If an exception concerns you, ask the title company if an endorsement can narrow the gap or if further due diligence, like a survey, is advised. Consumer guidance from the Michigan DIFS explains the regulatory framework for title insurance in Michigan.
Endorsements Plymouth buyers ask about
Endorsements add targeted protections to the standard owner’s policy. Availability and wording depend on the underwriter. Your title company will quote pricing and terms. Overview resources are available from the American Land Title Association.
Survey or site-related endorsement
Helpful if you are not ordering a new survey. It can provide coverage for certain encroachments, boundary issues, or violations that would have been shown on an acceptable survey, subject to the endorsement terms.
Access or frontage endorsement
If there is any question about legal vehicular access or public road frontage, this endorsement can add protection for losses if access is not as represented in the recorded documents.
Easement or encroachment endorsements
These can address losses tied to existing or unrecorded easements or certain encroachments. They help when recorded rights of way or utility easements cross the property in ways that could affect use.
Zoning, use, or municipal lien endorsements
These offer limited protections related to certain governmental issues, such as municipal liens that arise after the policy date or specific zoning matters, depending on the underwriter and terms.
Mechanic’s lien or “full coverage” endorsements
These can protect against certain construction-related liens that were not identified in the initial search but relate to pre-closing work. Terms and look-back periods vary.
HOA or condominium endorsements
For condos or HOA-governed properties, endorsements can address assessment coverage, lien priority, or association-related risks. Ask about what is customary for your building or subdivision.
Costs, claims, and limits
- Cost: Title insurance is a one-time premium paid at closing. The amount depends on your purchase price and the endorsements you choose. Ask your title company for a written quote.
- Claims: If a covered title problem appears later, you submit a claim to the title insurer. The insurer typically defends your title or pays covered losses up to the policy limit.
- Limits: The owner’s policy is commonly issued for the purchase price. If you significantly increase the home’s value through renovations, ask the title company about available options or endorsements. A new lender policy is usually required when refinancing.
Consumer and regulatory information is available from Michigan DIFS and the CFPB.
Who pays in Wayne County
Who pays for the owner’s policy is negotiable in Michigan. Practices can vary by region and market conditions. In Plymouth, payment is often guided by the purchase agreement and local custom, and your lender will require a separate lender’s policy. Confirm with your agent and the title company who will order the policy and who will pay for it, then document this in your contract.
Smart buyer checklist
Use this quick list to stay ahead of title issues during your Plymouth purchase.
- Confirm who will order title work and which title company or underwriter will handle your file.
- Request the title commitment early and review the exceptions and requirements with your agent or attorney.
- Ask if a new survey is recommended or required. If not, consider a survey-related endorsement.
- Verify policy amounts: the owner’s policy typically equals the purchase price, and the lender’s policy equals the loan amount.
- If the home is a condo or in an HOA, ask about endorsements that address assessments and association lien matters.
- Clarify who pays for the owner’s policy and any endorsements, and ensure the purchase agreement reflects your understanding.
- If a red flag appears, escalate quickly to resolve before closing.
When to bring in an attorney
Most title issues are resolved by the title company. Some are more complex and may require legal counsel, such as unresolved probate questions, boundary disputes, adverse possession claims, multiple liens that cannot be cleared, or conflicting legal descriptions. The title company and underwriter can advise on curative steps, and an attorney can guide you if court action is required.
Next steps for Plymouth buyers
Title insurance is about certainty. In a market with a mix of older plats, condos, and custom homes, it gives you a clear path to take title with confidence. Start by ordering title early, reading your commitment carefully, and choosing endorsements that match your risk profile and lender requirements. For more on industry standards and consumer protections, see the American Land Title Association, the Consumer Financial Protection Bureau, and Michigan DIFS. For local recording context, your title company will coordinate with the Wayne County Register of Deeds.
If you want a calm, well-orchestrated closing with clear guidance at every step, reach out to Proper Real Estate for a private consultation. We coordinate the details with your title team, explain the commitment in plain language, and help you make confident decisions.
FAQs
What is title insurance for a home purchase in Plymouth, MI?
- Title insurance protects against covered ownership problems that existed before closing, such as hidden liens or forged documents, with separate policies for you and your lender.
Do I need an owner’s policy if my lender requires a lender’s policy?
- Yes. The lender’s policy protects the lender’s mortgage interest, not your equity. Only an owner’s policy covers your ownership interest for covered risks.
How long does title insurance coverage last for Michigan homeowners?
- An owner’s policy is a one-time purchase at closing that typically lasts as long as you or your heirs have an interest in the property, up to the policy limit.
Who pays for the owner’s title policy in Wayne County closings?
- It is negotiable and guided by local practice and your purchase agreement. Confirm responsibility with your agent and the title company.
What endorsements are common for Plymouth-area properties?
- Buyers often consider survey or site-related, access, easement or encroachment, zoning or municipal lien, mechanic’s lien, and HOA or condo endorsements, subject to underwriter availability.
How do I review a title commitment before closing on a Plymouth home?
- Ask for the commitment early and review the requirements and exceptions with your agent or an attorney. Request endorsements if needed to address specific concerns.
Where are deeds and mortgages recorded for Plymouth properties?
- The Wayne County Register of Deeds maintains public land records and handles recording after closing, typically coordinated by your title company.
