Buying a home in Richmond is exciting, but that long list of closing costs can feel confusing. One line item that deserves your attention is title insurance, because it protects your ownership. If you want to understand what it covers, how the process works in Madison County, and what to expect on costs, you are in the right place. This guide breaks it down in plain English so you can close with confidence. Let’s dive in.
Title insurance basics
Title insurance is a one-time premium that protects against covered defects in the property’s title that existed before you closed. If a covered issue is later raised, the policy can pay legal defense costs and covered losses, up to policy limits. It does not cover matters listed as exceptions in your policy or issues that arise after the policy date unless you buy specific endorsements.
There are two main policies:
- Owner’s policy: Protects your ownership interest. Coverage generally lasts as long as you or your heirs own the home.
- Lender’s policy: Protects the lender’s lien for the life of the loan. It does not protect your equity.
Why it matters: even careful searches can miss hidden problems like forged signatures, unknown heirs, or undisclosed liens. Title insurance helps you avoid costly disputes and protects your stake in the property.
How Richmond closings work
In Madison County, a licensed title company or a closing attorney usually handles the title search and closing. Your purchase contract often names who orders title work and who pays for which title services. The title company searches public records at the Madison County Clerk’s office and other databases for deeds, mortgages, liens, taxes, and judgments.
After the search, you receive a title commitment that outlines proposed coverage and any issues that must be resolved before closing. The title company coordinates cures and payoffs for items like unpaid taxes or prior mortgages. At closing, you sign the deed and loan documents, funds are disbursed, and the documents are sent to the clerk for recording. Owner’s and lender’s policies are issued after recording or at closing, and any gap between signing and recording can be addressed through gap coverage or expedited recording.
Read your title commitment
Your title commitment is your preview of coverage and exceptions. Focus on two sections:
- Schedule A: Confirms the buyer and seller names, legal description, and policy amounts. Verify all details match your contract.
- Schedule B: Lists requirements to clear before policy issuance and the exceptions that the policy will not cover. Read these carefully and ask questions about easements, restrictions, or liens.
If an exception worries you, ask whether it can be cleared or if an endorsement is available to add coverage. Your closing agent can explain options and costs.
Costs and who pays
Your total title-related costs can include the title insurance premium, search and exam fees, settlement or escrow fees, recording fees, and any endorsement charges. The owner’s policy premium is generally tied to the purchase price. The lender’s policy premium is tied to the loan amount. Rates and filings are regulated at the state level, so request a written quote from a licensed Kentucky title provider for accuracy.
Who pays can vary by contract and local custom. In many markets, the borrower pays for the lender’s policy, while payment of the owner’s policy is negotiable. The best approach is to confirm responsibilities in your purchase contract and get an itemized estimate early. Compare not just premiums, but also service, responsiveness, and closing logistics.
Common Richmond title issues
Title issues that often appear in Madison County and central Kentucky include:
- Outstanding liens or prior mortgages that require payoff and recorded releases.
- Unpaid property taxes or assessments that must be satisfied before closing.
- Easements or rights-of-way that affect access or use and may be listed as exceptions.
- Boundary questions or missing surveys that may require a survey-related endorsement.
- Forged or defective deeds, missing signatures, or prior recording errors.
- Probate or unknown-heir matters in properties that passed through estates without clear documentation.
- Clerical mistakes in public records that need corrective documents.
How they are handled: cures are arranged before closing whenever possible. Endorsements can add targeted coverage for risks like survey or access, for an added premium. If something needs more time, the parties may use an escrow holdback until the cure is recorded. If a covered problem surfaces after you buy, your policy can provide defense and indemnity under its terms.
Buyer checklist
Early in escrow:
- Ask which title company or attorney will handle closing and get their contact info.
- Request the title commitment and read Schedule B exceptions closely.
- Get a written title quote for both owner’s and lender’s policies, plus fees and any endorsements.
- Ask whether a survey is required or recommended and request any existing survey.
Before closing:
- Confirm all taxes, assessments, HOA dues, liens, and prior mortgages will be paid or disclosed.
- Review the deed and legal description for accuracy.
- Discuss exceptions that concern you and whether endorsements are available and cost-effective.
- Verify recording procedures and timing with your closing agent, including how any gap risk is handled.
- Confirm who is paying for the owner’s policy per your contract.
After closing:
- Store your owner’s policy in a safe place. Keep copies of the recorded deed and mortgage.
- If a title issue arises later, notify the title insurer promptly and provide documents.
How your agent helps
A strong local agent can help you navigate the process and protect your timeline. Your agent can coordinate with the title company or attorney, track cures and payoffs, and keep you informed on next steps. They can also help you understand what is typical in Richmond for who pays and how recording is handled by the Madison County Clerk’s office.
If you want hands-on guidance from an advisor who works across Central Kentucky and understands Richmond’s closing customs, reach out to Thaddeus Blevins. You will get clear communication, practical advice, and a smooth path from contract to keys.
FAQs
Do Richmond buyers need an owner’s title policy?
- Yes. A lender’s policy protects the lender’s lien, while an owner’s policy protects your ownership and equity for as long as you or your heirs hold title.
How are title insurance premiums calculated in Kentucky?
- Premiums are based on the purchase price and loan amount, plus any endorsements, so request a written quote from a licensed Kentucky title provider for exact figures.
Who usually pays for the owner’s policy in Madison County?
- It is set by contract and local custom and is often negotiable, while the borrower typically pays for the lender’s policy.
What if an issue shows up on Schedule B exceptions?
- Ask whether the issue can be cured before closing or if an endorsement can add coverage, and confirm any costs or impacts on your use of the property.
How long until my deed is recorded after closing in Richmond?
- Recording timing depends on the Madison County Clerk’s procedures and your closing agent’s process, so ask about expected turnaround and gap coverage.
Will title insurance cover a boundary dispute?
- Not automatically, since many policies exclude boundary matters unless you purchase a survey-related endorsement and the exception is addressed in your policy.
