Title Insurance in Tennessee: What Buyers Should Know

Buying a home in Nashville should feel exciting, not uncertain. Yet title questions can make even a smooth deal feel risky. You want to know the home you’re buying is truly yours without surprise liens, boundary disputes, or paperwork errors coming back to haunt you. In this guide, you’ll learn what title insurance is, what it covers and excludes, how the process works in Davidson County, and the practical steps to protect your purchase. Let’s dive in.

What title insurance covers

Title insurance protects you against certain problems with a property’s past ownership, also called defects in title. It is a one-time premium you pay at closing, and coverage lasts as long as you own the home.

Typical covered issues include:

• Previously recorded liens or judgments that were missed in the search
• Forged or improperly executed deeds
• Clerical errors in public records
• Undisclosed heirs or probate defects that affect ownership

If a covered problem surfaces after closing, the insurer investigates and may defend your title in court or pay to cure the loss up to the policy amount.

Owner’s policy vs. lender’s policy

There are two separate policies in most Nashville transactions:

• Owner’s title insurance protects your equity and your legal right to the property. The coverage amount is typically the purchase price or a selected policy amount.
• Lender’s title insurance protects the mortgage lender’s interest in the property and is usually required when you finance. The coverage amount is typically the loan amount.

The lender’s policy does not protect you as the owner. If you want protection for your equity, you should obtain an owner’s policy.

What title insurance does not cover

Title insurance focuses on past issues tied to recorded documents. Common exclusions include:

• Matters you create or agree to after closing, such as failing to get permits
• Unrecorded easements or rights-of-way not found in the search
• Zoning and land use violations
• Survey and boundary issues unless an endorsement is added
• Mineral rights, environmental contamination, and eminent domain unless specifically endorsed

You can add endorsements to tailor coverage. Common add-ons include survey or lot line endorsements, access endorsements, restrictions or CCRs endorsements, and mechanics’ lien endorsements. Endorsements usually cost extra and depend on your property’s needs.

How the process works in Nashville

In Tennessee, a title company or closing attorney orders the title search and issues a title commitment before closing. This commitment previews what your policy would cover, what items must be cleared, and what will be excluded.

Title search and title commitment

The title company or attorney searches public records and prepares a title commitment listing:

• The legal description and current recorded owner
• Mortgages, tax liens, judgments, and other liens
• Recorded easements, covenants, restrictions, and encumbrances
• Requirements to clear issues before issuing a policy
• Schedule B exceptions that will not be covered by the policy

Timeframes vary. A straightforward search may take a few business days. Older properties, complex ownership histories, or curative steps can extend the timeline to several weeks.

The closing team and local recording

Closings in Davidson County are commonly handled by title companies, escrow agents, or closing attorneys. Confirm who will hold earnest money, who prepares the settlement statement, and who records the deed and mortgage with the Davidson County Register of Deeds. Clear communication early in the contract period helps prevent last-minute surprises.

Who pays for which policy

Payment for title insurance is negotiable in Tennessee. In some markets, sellers pay the owner’s policy and buyers pay the lender’s policy, but customs can shift with market conditions and local practices. In Nashville, confirm with your agent and the title company who will pay for each policy, and memorialize it in your purchase agreement.

A practical buyer checklist

Use this checklist to stay on top of title tasks while you’re under contract in Nashville:

• Request the title commitment as soon as it is available.
• Read the Schedule B exceptions carefully and ask questions about anything unclear.
• Order or obtain a current survey if possible. Survey issues are a common source of post-closing disputes.
• Discuss endorsements that fit your property, such as survey or access endorsements or a restrictions/HOA endorsement.
• Confirm in writing who pays for the owner’s and lender’s policies in your contract.
• Ask for a written closing and disbursement statement before closing to review fees.
• Verify property tax status with the Davidson County Trustee to avoid inheriting delinquent taxes.
• Request copies of recorded easements, covenants, or historic preservation restrictions if the property is in a conservation or historic overlay area.

Common Nashville title issues

Nashville’s mix of historic neighborhoods and rapid growth can turn up specific title concerns. Here are patterns buyers and title professionals often watch for:

• Older properties with incomplete or handwritten records
• Mechanic’s or contractor’s liens from unpaid renovation work
• Federal or state tax liens and past judgments that attach to the property
• Probate and heirship gaps after informal or incomplete probate
• Recorded easements, historic preservation restrictions, or municipal code issues
• Boundary disputes and encroachments on small lots

None of these are deal-breakers by default. The key is identifying them early and clearing them properly.

How problems get resolved

Curative work ranges from simple document fixes to more complex legal actions:

• Title companies often obtain lien payoffs, record satisfactions, secure corrective affidavits, or re-record updated documents.
• Parties can negotiate escrow holdbacks or seller payoffs so closing can proceed while a minor issue is finalized.
• If ownership is disputed or records are unclear, a quiet title action may be needed. That process requires legal counsel and can take months.

Straightforward curative items may resolve in days or weeks. Litigation can take significantly longer, so build time into your contract if the commitment shows unresolved defects.

Costs and consumer protections

Title insurance is a one-time premium paid at closing. The price depends on your purchase price, the insurer’s Tennessee rate schedule, and any endorsements you add. Closing, recording, and search fees are additional. Ask your title company for a written quote to understand the full numbers for your transaction.

Title insurance in Tennessee is regulated, and insurers and agents are licensed at the state level. Many companies use industry-standard forms and endorsements from the American Land Title Association. You can also review general consumer resources on closing disclosures and title insurance from federal consumer agencies. If your title commitment shows a complex defect, it is wise to consult a Tennessee real estate attorney.

Smart questions to ask your title company

Bring these questions to your next call or email:

• What does Schedule B list, and how do those exceptions affect my use of the property?
• Are there any curative requirements and how long will they take?
• Which endorsements are available and recommended for this property type and location?
• Do you recommend obtaining a current survey, and which survey endorsement would apply?
• Who is paying for the owner’s and lender’s policies under our contract?
• Can you provide a detailed, written closing statement before closing?
• Are property taxes current with the Davidson County Trustee, and will you collect and pay any amounts due at closing?

The bottom line for Nashville buyers

Title insurance is one of the simplest ways to protect your ownership and equity in a Nashville home. An owner’s policy helps guard against past-record defects, while a lender’s policy protects only the lender. Read your title commitment, review the Schedule B exceptions, consider the right endorsements, and confirm who is paying for which policy in your contract. When questions arise, loop in your agent and title professional early to keep your closing on track.

Ready to talk through your next steps? Reach out to Donald White Realty for clear, local guidance and a smooth path to the closing table.

FAQs

Do I need an owner’s policy if my lender requires title insurance?

• Yes. The lender’s policy protects the lender’s lien only. An owner’s policy protects your equity and your legal ownership rights.

What problems does title insurance in Nashville usually cover?

• It typically covers past-record issues like undisclosed liens, forged documents, clerical errors, and undisclosed heirs, subject to your policy’s terms.

What is not covered by title insurance in Tennessee?

• Common exclusions include unrecorded easements, zoning and land use violations, and boundary disputes unless you add specific endorsements.

Who pays for title insurance in a Nashville home purchase?

• It is negotiable and can vary with local custom. Confirm payment responsibilities in your purchase agreement early in the process.

How long does a title search and commitment take in Davidson County?

• Simple searches can finish in a few business days. Older or complex properties and curative work can extend the timeline to several weeks.

Should I get a survey for a Nashville home?

• A current survey is highly recommended. It can reveal boundary, encroachment, or access issues, and it may allow you to add a survey endorsement for better protection.

What happens if a covered title issue appears after closing?

• Notify your title insurer right away. They will investigate and may defend your title or pay to cure the covered loss up to the policy amount.