What Is Title Insurance & Why Do You Need It?
When you purchase real estate in New York, you expect clear ownership — but hidden title issues can put your investment at risk long after closing. Title insurance is a one-time premium policy that protects buyers, lenders, and property owners from financial loss caused by defects in a property’s ownership history.
Unlike other forms of insurance that protect against future events, title insurance protects against past events — problems that already exist in the public record but haven’t been discovered yet. A forged deed from 20 years ago, an unpaid contractor lien from a previous owner, or a missing heir who claims a share of the property can all surface after your closing and threaten your ownership without title insurance protection.
At Northway Title Agency, Inc., we have provided residential and commercial title insurance across New York State for over 40 years. Our policies are underwritten by Chicago Title and First American — two of the nation’s most financially stable and respected title underwriters — giving our clients industry-leading protection backed by institutional resources.
Common Title Problems Title Insurance Protects Against
Even the most thorough title search cannot guarantee that hidden risks won’t surface after closing. Some of the most common title defects that appear in New York real estate include:
Forged or falsified documents
Fraudulent deeds or forged signatures in the chain of title that invalidate prior transfers of ownership.
Unpaid liens
Outstanding contractor liens, judgment liens, tax liens, or HOA assessments attached to the property from a prior owner.
Recording errors
Clerical mistakes in deed indexing, property descriptions, or public record filings that create title defects.
Missing heirs & estate claims
Undisclosed heirs or beneficiaries of prior owners who later assert an ownership claim on the property.
Undisclosed easements
Hidden restrictions on property use — utility easements, right-of-way agreements, or access restrictions not visible in a standard search.
Invalid or conflicting deeds
Errors in prior ownership transfers, including deeds signed by parties who lacked legal authority to convey the property.
How the Title Insurance Process Works
From the moment you go under contract to the day you close, Northway Title Agency manages every step of the title process. Here’s what to expect:
Order placed & title search initiated
Once you submit your order, our team opens the file and begins a comprehensive search of public records — including the county clerk’s office, court records, tax records, and judgment databases. We trace the complete chain of ownership and identify any recorded instruments that affect the title.
Day 1–2
Title examination & defect review
Our title examiners review the search results in detail, identifying any liens, easements, judgments, or ownership gaps that require resolution before closing. This is where our 40+ years of New York title experience makes the difference — we know what to look for and how to resolve issues efficiently.
Day 3–7
Title commitment issued
After examination, we issue a title commitment — a formal document outlining the conditions under which we will insure the title. This includes any requirements (such as payoff of existing liens) that must be satisfied before the policy can be issued.
Day 7–10
Requirements satisfied & closing scheduled
We work with all parties — buyer, seller, lender, and attorneys — to satisfy any outstanding requirements. Once cleared, we coordinate the closing date, prepare closing documents, and confirm all figures with the lender.
Day 10–14
Closing & policy issuance
At closing, all documents are executed, funds are disbursed, and the deed is recorded with the county clerk. After recording is confirmed, your owner’s title insurance policy is issued — providing lifetime protection from covered title defects that existed as of the closing date.
Closing day
Owner's Policy vs. Lender's Policy — What's the Difference?
There are two types of title insurance policies issued in every New York real estate transaction. Understanding the difference is essential for every buyer.
| Owner’s Policy | Lender’s Policy | |
|---|---|---|
| Who it protects | The property buyer/owner | The mortgage lender only |
| Required in New York? | Not legally required but strongly recommended | ✓ Required on all mortgaged transactions |
| Who pays for it? | Buyer (one-time premium at closing) | Buyer (included in closing costs) |
| Coverage amount | Full purchase price of the property | Outstanding loan balance (decreases as loan is paid) |
| Duration of coverage | Lifetime — as long as you own the property | Until the mortgage is paid off or refinanced |
| Covers legal defense costs? | ✓ Yes | ✓ Yes — for lender only |
| Covers loss of property value? | ✓ Yes — up to policy amount | ✗ No — lender only recovers loan balance |
| Protects if you sell? | ✓ Yes — covers prior ownership period | ✗ No — coverage ends at sale |
| Cost (approximate) | 0.5%–1% of purchase price (one-time) | Based on loan amount (one-time) |
Our recommendation: Always purchase an owner’s policy. The lender’s policy — which you pay for — protects only the bank. For a one-time premium typically between $800–$1,500 on a $300,000 home, an owner’s policy provides lifetime protection for your most valuable asset. See our FAQ for more details →
What Are ALTA Endorsements & What Do They Cover?
Standard title insurance policies provide broad protection, but ALTA (American Land Title Association) endorsements extend your coverage for specific risks that may apply to your property or transaction type.
As an ALTA Best Practices Certified agency, Northway Title Agency is trained and authorized to issue a full range of ALTA endorsements. Here are the most commonly requested endorsements in New York State transactions:
ALTA 3 — Zoning
Insures that the property’s current use is permitted under applicable zoning ordinances — important for commercial buyers and investors making use-dependent acquisitions.
ALTA 9 — Restrictions, Encroachments & Minerals
Covers violations of deed restrictions, physical encroachments onto neighboring properties, and undisclosed mineral rights claims — common in rural New York transactions.
ALTA 22 — Location
Insures that the improvements on the property are located within its legal boundaries — provides protection if a survey reveals boundary issues after closing.
ALTA 25 — Same as Survey
Extends coverage to match a current survey — particularly valuable for commercial transactions where precise boundary and improvement location is critical.
ALTA 8.1 — Environmental Protection Lien
Protects against environmental cleanup liens that federal or state agencies may impose on contaminated properties — essential for industrial and commercial acquisitions.
ALTA 28 — Easement & Access
Insures that the insured property has legal access to a public road — critical for landlocked parcels and properties accessed via private roads or easements.
Not every transaction requires endorsements — our team evaluates each file individually and recommends only the endorsements that are relevant to your specific property and transaction type. Contact us to discuss your transaction →
Why Choose Northway Title vs. a National Underwriter?
When you order title insurance through a national underwriter directly — or through an out-of-area agency — you lose the local expertise that makes the difference between a smooth closing and a delayed one.
National underwriter direct
Generic title services
- No local knowledge of county recording systems
- No relationships with local attorneys & lenders
- Slower turnaround — unfamiliar with local records
- Generic approach to complex title issues
- No in-person closing support
- No Capital Region market expertise
Northway Title Agency
Local expertise, national backing
- 40+ years in the Capital Region — we know every county clerk
- Deep relationships with local attorneys, lenders & agents
- Fastest turnaround in the market — 3–10 business days
- Experienced team resolves complex title issues locally
- In-person closing coordination available
- Backed by Chicago Title & First American nationally
ALTA Best Practices Certified since 2014 — Our certification demonstrates compliance with the highest standards of data security, financial responsibility, and consumer protection required by lenders and institutional clients. Not all title agencies maintain this certification.
Frequently Asked Questions About Title Insurance
Do I need title insurance if I'm paying cash (no mortgage)?
Yes — more so than a financed buyer. Without a lender requiring a lender’s policy, there is no institutional check on the title. Cash buyers who skip owner’s title insurance have no protection if a title defect surfaces after closing. We strongly recommend an owner’s policy for all cash transactions. See more FAQs →
How is title insurance different from homeowner's insurance?
Homeowner’s insurance protects against future events — fire, theft, storm damage. Title insurance protects against past events — defects, liens, or ownership disputes that already existed before you purchased the property. Both are important; they cover completely different risks.
Who chooses the title company in a New York real estate transaction?
In New York, the buyer typically selects the title company for both the owner’s and lender’s policies. You are not obligated to use a title company recommended by your real estate agent or lender — you have the right to choose. Northway Title Agency is an independent agency with no affiliation to any real estate brokerage.
What is the difference between a title search and title insurance?
A title search examines public records to identify known defects before closing. Title insurance provides financial protection against defects that were not discovered during the search — or that couldn’t be found through a search of public records. You need both. Read more on our FAQ page →
How long does title insurance coverage last?
An owner’s title insurance policy lasts for as long as you own the property — and in some cases, even after you sell, if a claim arises from the period of your ownership. It is a one-time premium with no renewals required.