Buying a home in Vancouver is a big step, and the last thing you want is a surprise title problem after closing. Maybe you have heard about owner’s and lender’s title insurance but are not sure what you need or who pays. You are not alone. In this guide, you will learn what title insurance covers, how it fits into closing in Clark County, what to expect for costs, and which endorsements are worth a closer look. Let’s dive in.
What title insurance covers
Title insurance protects you from financial loss caused by defects in the property’s title that existed before you bought it. You pay a one-time premium at closing, and coverage lasts as long as you own the home. If a covered issue pops up later, the policy can cover legal defense and certain losses.
Typical covered risks include:
- Undisclosed liens, such as old mortgages or judgments
- Forged signatures or defective deeds
- Errors in public records or indexing
- Missing heirs or issues from improper probate
- Certain undisclosed easements or rights that conflict with marketable title
Typical exclusions include items listed as exceptions in the title commitment, zoning rules, unrecorded claims not found in public records, and defects you knew about but did not disclose. Title insurance does not replace a physical survey unless you add a specific survey-related endorsement.
Owner vs. lender policies
There are two different policies, and each serves a distinct purpose.
- Owner’s policy: Protects your equity and ownership, typically up to the purchase price. It is optional from a loan standpoint but strongly recommended. Once purchased, it covers you and your heirs for as long as you own the property.
- Lender’s policy: Protects the lender’s security interest up to the loan amount. Most lenders require this policy when you get a mortgage. Coverage decreases as you pay down the loan.
These policies are separate. A lender’s policy does not protect your equity. Even if your lender requires a policy, consider getting an owner’s policy to secure your ownership rights.
How title fits into closing
In Washington, title and escrow companies manage most closings, and an attorney is not required. Here is how it typically works in Vancouver and across Clark County:
Open escrow and order title. After your offer is accepted, the title or escrow company opens a file and starts the title search.
Title search and commitment. The title company reviews Clark County records and issues a preliminary title report or commitment listing exceptions. These are items not covered unless cleared or insured around.
Clear exceptions. The parties work to resolve issues like old liens, reconveyances, or boundary matters before closing. Payoff statements, releases, or affidavits may be required.
Decide on endorsements. You review the commitment with your agent and title officer, then select an owner’s policy and any endorsements that fit the property.
Sign and fund. You sign closing documents. The title company collects funds per the settlement statement.
Record and issue policies. The deed and deed of trust are recorded with the Clark County Auditor. After recording, the title company issues the final policies.
Local note: Recording fees and timelines can vary by county. The title company will include Clark County recording fees in your closing estimate. In many transactions, Washington’s real estate excise tax is paid by the seller, but confirm your contract terms.
Costs and who pays
Title insurance premiums are based on published rate schedules filed by insurers and overseen by state regulators. The owner’s policy is usually tied to the purchase price. The lender’s policy is tied to the loan amount. Some underwriters offer a reduced combined cost when both policies are issued together.
Who pays the owner’s policy varies by market custom and negotiation. In many cases, the buyer pays the lender’s policy. In Clark County, it can differ by neighborhood, price point, and market conditions. The key is to treat it as a negotiated term of your purchase and sale agreement.
If you want the seller to pay for the owner’s policy, consider asking your agent to include clear language in your offer, such as:
- “Seller to pay for the owner’s title insurance premium in an amount sufficient to issue an owner’s title insurance policy to Buyer.”
Always have your agent review the exact language so it aligns with local forms and your strategy. Ask your title or escrow officer for a written estimate early so you know the exact title charges and recording fees you can expect at closing.
Endorsements to consider
Endorsements add targeted protections that go beyond the base policy. Availability and pricing depend on the insurer and the property. Common options include:
- Survey or location endorsement: Helps protect against certain boundary or encroachment issues without a new survey. Consider this if there are fences, sheds, or improvements near lot lines, or if no recent survey exists.
- Access endorsement: Confirms the property has legal access via a public road or recorded easement. Useful for rural parcels or homes on private lanes.
- Zoning endorsement: Offers limited protection for the property’s current zoning classification or listed use. It does not guarantee future approvals.
- Mechanic’s or construction lien endorsement: Addresses certain contractor lien risks when recent work has been completed.
- Environmental or mineral rights endorsements: Specialized protections for properties with potential contamination or subsurface rights concerns.
Ask the title officer which endorsements are available and practical for your property and budget.
Local Clark County checks
Clark County’s mix of older neighborhoods and rural parcels means it is smart to pay attention to a few local items:
- Boundary and encroachments: If improvements sit near a boundary, ask about a survey or a survey-related endorsement.
- Easements and access: Confirm ingress and egress, especially on private roads or where access depends on recorded easements.
- Floodplain awareness: Title insurance does not cover flood risk. If the property is near the Columbia River or low-lying areas, review flood information and your insurance options.
- Utility easements and HOA restrictions: Note any utility corridors, shared driveways, or HOA covenants that appear in the commitment.
- Recording specifics: The Clark County Auditor maintains deed and lien records. Your title company will handle recording and can explain any county-specific fees.
Read your title commitment
Your title commitment is your roadmap to a clean closing. It typically includes:
- Schedule A: Basic details like the proposed insured, policy amount, and legal description.
- Schedule B – Requirements: Items that must be completed or cleared before the policy will be issued, like releases or payoffs.
- Schedule B – Exceptions: Items that will not be covered unless specifically removed or insured over.
Action steps:
- Review the commitment as soon as you receive it. Highlight any exceptions related to easements, access, boundary lines, or restrictions.
- Ask the title officer what can be cleared and what must remain. Clarify whether an endorsement can add coverage for a specific issue.
- If you need a survey or supporting document, order it early so it does not delay closing.
Questions to ask your title officer
Use this quick list to get clear answers early in escrow:
- Who will order the title search and issue the title commitment?
- Can you provide a written estimate for owner and lender policy premiums plus endorsement costs?
- Are there any exceptions or encumbrances in the commitment I should be concerned about?
- Is there a recent survey? Would a survey or survey endorsement be smart on this property?
- Who typically pays the owner’s and lender’s title premiums for homes like this in Clark County?
- What endorsements do you recommend given the location and condition of this home?
- What recording fees and other title-related closing costs should I expect?
Next steps
- Decide on your owner’s policy. Even if the lender requires a policy, an owner’s policy protects your equity for as long as you own the home.
- Get a written quote. Ask your title company for a clear estimate of owner and lender premiums, endorsements, and county recording fees.
- Nail down who pays. Work with your agent to negotiate who covers the owner’s policy and put that term into your contract.
- Review and clear exceptions. Read the title commitment early. Ask the title officer which items can be cleared and whether endorsements can fill gaps.
- Confirm recording and timing. Coordinate signing, funding, and recording so your closing day goes smoothly.
If you want a calm, step-by-step process with a local guide who explains each document in plain language, reach out to Tracy Mancini Burgess. Tracy will help you weigh endorsements, coordinate with your title officer, and keep your closing on track.
FAQs
What is title insurance, and do I need it in Vancouver?
- Title insurance is a one-time policy that protects against covered pre-closing title defects. While a lender’s policy protects the lender, an owner’s policy is recommended to protect your equity.
Who usually pays for the owner’s policy in Clark County?
- It is negotiable and can vary by market conditions and price point. Confirm local custom with your agent and write the term into your offer if you want the seller to pay.
How much does title insurance cost in Vancouver?
- Premiums follow filed rate schedules based on the purchase price and loan amount. Ask your title company for an exact written quote and whether a bundled discount applies.
Does title insurance cover boundary issues without a survey?
- Not by default. Consider a survey or a survey-related endorsement if structures sit near lot lines or if no recent survey exists.
What endorsements should I consider for rural Clark County properties?
- Access endorsements for ingress and egress, survey or location endorsements for boundaries, and, when applicable, zoning or construction lien endorsements based on recent work.
