Buying in Oldham County should feel exciting, not confusing. If the words title insurance make you pause, you are not alone. You want to protect your investment and avoid surprises after closing. In this guide, you will learn what title insurance covers in Kentucky, how owner and lender policies differ, the choices you will make at the closing table, and the key local issues to watch for in Oldham County. Let’s dive in.
What title insurance covers in Kentucky
Title insurance protects you from financial loss caused by defects in the title that existed before your policy date. You pay a one-time premium at closing. Coverage lasts as long as you own the home for an owner’s policy, or until the loan is paid off for a lender’s policy.
Common covered risks include:
- Forged or invalid signatures in prior documents
- Unknown or undisclosed liens and mortgages that were not properly released
- Errors in public records that affect ownership
- Unknown heirs who raise claims after a past probate error
When you go under contract, the title company issues a title commitment. It shows what must be fixed before closing and what exceptions the policy will not cover. After closing, the final policy is issued once required items are complete.
Owner vs lender policies
You will likely see two policy types in your closing paperwork.
- Lender policy. This is usually required by your mortgage lender. It protects the lender up to the loan amount and ends when the loan is paid off. It does not protect your equity.
- Owner policy. This is optional but strongly recommended. It protects your ownership and your equity up to the policy amount. It also pays covered legal defense costs if someone challenges your title.
Both policies can cover many of the same defects, but only an owner’s policy protects your interests as the homeowner.
What title insurance usually does not cover
Standard policies exclude certain risks. You can often add endorsements for more protection, but you need to request them and they cost extra.
Typical exclusions include:
- Zoning or land use issues without a specific endorsement
- Environmental contamination
- Problems you knew about and did not disclose to the insurer
- Boundary or survey matters that a current, accurate survey would reveal, unless you add a survey-related endorsement
- Rights of parties in possession under unrecorded leases without an endorsement
If you care about setbacks, allowed uses, or boundary lines, ask about endorsements and consider a new survey.
Oldham County title basics
Oldham County has both suburban neighborhoods and rural parcels. Local recording and closing practices are straightforward, but they do vary.
- Deeds, mortgages, and liens are recorded at the Oldham County Clerk’s office. Your title examiner checks these public records to confirm the chain of title and find encumbrances.
- Property tax status and assessed values are available through the Oldham County Property Valuation Administrator. Title professionals confirm that taxes are current as part of the search.
- In Kentucky, closings may be handled by a title company, settlement agent, or attorney. Ask your agent or lender who will conduct your closing and issue the policy.
Common local title risks to watch
Every property is unique, but these issues come up often in Oldham County.
Liens and undisclosed encumbrances
A prior mortgage, judgment, or tax lien was not properly released. Example: A seller thinks an old contractor’s lien was cleared, but the release was never recorded. An owner’s policy can cover the cost to resolve it or defend your title.
Unknown heirs and probate defects
Family transfers without proper probate can leave gaps in the chain of title. Example: Years after an informal transfer, an heir asserts an ownership claim. An owner’s policy may cover your defense and loss up to the policy amount.
Forgery and public record errors
Old documents can contain forged signatures, bad notarizations, or incorrect releases. These defects can cloud title. Policies typically insure against loss from these past errors.
Boundary and survey issues
Encroachments or survey mistakes can affect your yard or driveway. Standard policies usually exclude matters a correct survey would show. If you see fences, sheds, or driveways near lot lines, consider a new ALTA-NSPS survey and a survey endorsement.
Easements and access
Recorded easements or rights of way can affect where you build or how you access the property, especially on rural lots. Title commitments list recorded easements. Ask if an access or right-of-way endorsement is available.
Zoning, building code, and environmental items
Standard policies exclude zoning and environmental risks. If these matter to you, add the right endorsements and run separate due diligence with your agent, title company, or attorney.
Your closing table choices
Here are the decisions most Oldham County buyers make before signing.
Decide on an owner’s policy
Reasons to buy an owner’s policy:
- It protects your equity and pays covered legal defense costs
- It is a one-time cost compared to a potentially large future loss
- It adds confidence when the chain of title is long or complex
Some buyers skip it to reduce cash at closing, but they accept the risk of future claims. Who pays for the owner’s policy is a matter of local custom and negotiation. Confirm with your agent or title company for your specific deal.
Review the title commitment
Ask for the commitment as soon as it is ready and read it with your agent.
- Schedule A lists the buyer, the property, and insured amounts
- Schedule B Part I lists requirements to clear before policy issuance, such as payoffs or releases
- Schedule B Part II lists exceptions the policy will not cover unless they are removed or endorsed
Ask the seller to clear material liens or judgments, or to escrow funds to resolve them.
Choose endorsements and a survey strategy
Endorsements tailor coverage to the property. Common options include:
- Survey or survey exception deletion to protect against boundary problems
- Access or right-of-way coverage for properties with private drives or shared entrances
- Zoning or residential subdivision endorsements when future use matters
- Mechanic’s lien coverage after recent construction or renovation
Your choices depend on the property type, the title search findings, your risk tolerance, and cost.
Address the gap period
There is often a brief gap between the last title search date and the recording of your deed or mortgage. Ask your title company how they handle gap coverage and confirm the effective date details.
Step-by-step checklist for Oldham County buyers
Use this as a quick reference from contract to keys.
Pre-contract and due diligence
- Ask the seller for the current deed and any recent survey
- Order a title search or title commitment from a licensed title company or attorney
- Consider a new ALTA-NSPS survey if boundaries or improvements matter
Before closing
- Review the title commitment closely, especially Schedule B exceptions
- Confirm how recorded liens or judgments will be cleared or escrowed
- Decide on an owner’s policy and clarify who pays that premium
- Select endorsements you want and request pricing
- Confirm property tax status and prorations
At closing
- Check that the deed and mortgage legal description matches the title commitment
- Confirm recording instructions and ask when the documents will be sent for record
- Obtain copies of your final title policy and recorded deed for your records
After closing
- Store the owner’s policy with your closing package
- If a title issue arises, notify the title insurer promptly as policies require timely notice
Practical Oldham County scenarios
- You buy a home with a long family ownership history. An unknown heir appears months later. Your owner’s policy can step in to defend your title and cover loss up to the policy amount.
- You close on a renovated property. A contractor files a mechanic’s lien for unpaid work tied to the prior owner. With the right coverage, the title insurer can help resolve it.
- You purchase a rural parcel with a shared driveway. A recorded access easement limits where you can build a garage. The title commitment reveals the easement so you can plan accordingly and consider an access endorsement.
Costs and who pays
Title premiums are paid once at closing. The lender’s policy is usually required when you finance. The owner’s policy is optional but recommended because it protects your equity and resale rights. Who pays the owner’s premium varies by local custom and your contract terms. Ask your agent or title company what is typical in Oldham County and negotiate it in your offer.
Ready to buy in Oldham County?
You deserve a smooth closing and clear answers at every step. If you want help reviewing your title commitment, selecting the right endorsements, or coordinating a survey, our team can guide you from contract to keys with local insight and steady communication. Reach out to Paul Kiger to get started.
FAQs
What is title insurance for Oldham County homebuyers?
- Title insurance protects you from financial loss due to past title defects, with a one-time premium at closing and coverage that lasts as long as you own the home.
Do I need an owner’s policy if my lender requires one?
- Yes if you want your equity protected, since the lender’s policy only protects the lender’s loan interest and not your ownership.
What does title insurance not cover in Kentucky?
- Standard policies exclude zoning, environmental issues, and most boundary matters unless you add specific endorsements or obtain a survey.
How do I read a title commitment before closing?
- Focus on Schedule A for parties and amounts, Schedule B Part I for required actions, and Schedule B Part II for exceptions you may want removed or endorsed.
Who usually pays for the owner’s policy in Oldham County?
- Payment is based on local custom and negotiation, so confirm with your agent or title company and include it in your offer terms.
What if a title problem appears after closing?
- Notify the title insurer promptly, keep your owner’s policy handy, and allow the insurer to evaluate coverage and defense under the policy terms.
