Buying in Londonderry and want to avoid surprises at closing? Title insurance is one tool that helps protect your investment if a hidden issue with the property’s title surfaces later. If you understand how it works in New Hampshire, you can make clear choices, manage costs, and close with confidence. In this guide, you’ll learn what title insurance covers, how it fits into the Londonderry closing process, what it costs, and the exact steps to take. Let’s dive in.
What title insurance covers
Title insurance protects you against financial loss from covered defects in a property’s title that existed before you bought the home. Unlike most insurance, it focuses on past events, not future ones. Coverage depends on the policy language and any exclusions or endorsements.
Common covered issues include:
- Forged or improperly executed documents in the chain of title
- Undisclosed heirs or missing signatures in prior transfers
- Errors in the public record or indexing mistakes
- Unreleased or improperly released liens, like old mortgages or judgments
- Unknown easements or restrictive covenants that were not properly recorded
- Fraud or impersonation in a prior transfer
Typical exclusions include:
- Zoning or land use law compliance
- Environmental conditions or contamination
- Rights of parties in possession that are not recorded, unless you add an endorsement
- Problems created after your policy date
- Boundary or survey issues that a proper survey would reveal, unless you add an endorsement
Endorsements to consider
Endorsements expand protection for specific risks and cost extra. Buyers in 03053 often review:
- Survey or boundary endorsements for encroachments or setback concerns
- Access endorsements to confirm recorded, insurable access
- Limited zoning or subdivision endorsements where available
- Inflation or policy increase options if you plan future financing
If you see fences on or near lot lines, shared driveways, or stone walls, talk with your title professional about survey-related endorsements.
Owner vs. lender policies
Most lenders require a lender’s title policy that protects the lender’s interest up to the loan amount. This coverage decreases as you pay down your mortgage and ends when the loan is repaid.
An owner’s policy is optional and protects your equity, typically up to the purchase price, for as long as you own the property. If a covered defect surfaces later and affects your ownership, the owner’s policy helps pay for defense and financial loss up to the policy limit, subject to the policy terms and exceptions.
When an owner’s policy makes sense
An owner’s policy is worth serious consideration if:
- You are making a large down payment and want to protect your equity
- The property has older deeds, boundary questions, or visible encroachments
- You plan to hold the property for many years and want long-term protection
How title work fits into NH closings
Once you sign a purchase and sale agreement, the title company or closing attorney orders a title search and prepares a title commitment. This commitment outlines what will be insured and lists exceptions and items to resolve before closing.
Timeline highlights
- Title search and commitment: The commitment identifies liens, easements, tax matters, and requirements to cure. You should review this document before closing.
- Clearing objections: Sellers typically pay off existing mortgages, clear liens and taxes, and record necessary releases so you receive marketable or insurable title, as your contract specifies.
- Closing and recording: The title insurer issues final policies after documents are recorded. Your owner’s policy is usually delivered after recording and funding.
Who runs the closing in New Hampshire
Local practice varies. Closings in New Hampshire are commonly handled by title companies, title agents, or real estate attorneys. An attorney is not universally required to attend. The structure can depend on the parties and the transaction.
Costs and who pays in 03053
You pay for title insurance one time at closing. The lender’s policy is based on the loan amount and the owner’s policy is typically based on the purchase price. Endorsements and some services are additional. Rates and how they are charged can vary by insurer and by state.
Who pays for the owner’s policy is negotiable. Local customs differ within New England. In some areas sellers provide an owner’s policy; in others buyers do. Your purchase and sale agreement should clearly state who pays for which title-related costs in your Londonderry transaction.
Common NH title issues and fixes
In Rockingham County and nearby areas, searches often uncover:
- Unreleased or improperly released mortgages or mechanic’s liens
- Judgment liens against prior owners that still attach to the property
- Gaps in the chain of title, missing signatures, or heir claims
- Recorded easements or rights-of-way that are not obvious on site
- Recording errors or missing historical documents
These are typically resolved by paying off liens, recording releases, obtaining affidavits, or using corrective deeds. If an issue cannot be fully cured before closing, the title insurer may except it from coverage or offer a targeted endorsement for additional premium. In more complex cases, a quiet title action may be needed, but that is uncommon.
Choosing a title provider
You often have the right to shop for title services. Even if your lender requires title insurance, you can typically choose the provider. Your lender’s Closing Disclosure will show title charges, and federal consumer rules require transparent disclosure.
When comparing title providers in Rockingham County, ask for:
- A written quote that lists the title premium, search, closing, and recording fees
- A sample title commitment so you can see common exceptions and requirements
- Estimated timing to deliver the commitment and clear objections
- Recommendations on endorsements based on the property type and any survey or boundary concerns
How Rockingham County records impact your search
Title work will review Rockingham County public records for deeds, mortgages, releases, judgments, tax liens, and easements in the property’s chain of title. If a prior transfer or lien was recorded in another county, that record will be examined too. Many suburban New Hampshire buyers review existing surveys or commission new ones when boundary lines, driveways, or access are unclear, especially where older deeds use vague descriptions.
Buyer checklist for Londonderry
Use this step-by-step list to stay in control from contract to closing:
Pre-contract
- Ask your agent to include a clear title condition, such as marketable or insurable title to your satisfaction.
- Request the seller’s deed, mortgage payoff statements, recent tax bills, and any property disclosures if available.
After signing
- Order the title commitment right away and review all exceptions and requirements.
- If a survey exists, review it. If not, consider ordering one if boundaries, fences, or driveways raise questions.
- Discuss which endorsements you may need, such as survey or access coverage, and get cost estimates.
Before closing
- Confirm who is paying for the owner’s and lender’s policies based on your contract.
- Verify that all liens, tax items, and judgments listed in the commitment will be cleared at or before closing.
- Review your Closing Disclosure and confirm title premiums, closing fees, and recording costs.
At and after closing
- Ensure the lender’s policy will be issued so loan funding proceeds smoothly.
- Request copies of the recorded deed and the final owner’s title policy once available.
- Keep your owner’s policy permanently with your home records.
Questions to ask your title team
- Who pays for the owner’s policy in this contract and market?
- What exceptions will appear on my owner’s policy, and which endorsements do you recommend for this property?
- Are there recorded easements, covenants, or rights-of-way that affect how I plan to use the property?
- Is a recent survey available? If not, do you recommend one for this lot?
- How long will it take to deliver the commitment and clear any objections?
How we help Londonderry buyers
Buying in 03053 often involves older deeds, long ownership histories, and suburban boundary details. A careful review of the title commitment and the site can prevent headaches later. With a detail-focused process and strong relationships across southern New Hampshire, you get practical guidance on what to ask, what to expect, and how to keep your closing on track.
If you want a local, technically minded advocate who can coordinate with your lender and title company and help you make clear choices, connect with Rebecca Curran. You will get straight answers, a calm process, and a closing day that feels ready.
FAQs
What is the difference between owner’s and lender’s title insurance?
- A lender’s policy protects the lender up to the loan amount and ends when the loan is paid off, while an owner’s policy is optional and protects your equity, typically up to the purchase price, for as long as you own the home.
Do I need an owner’s policy if my lender has coverage?
- The lender’s policy does not protect your equity; an owner’s policy helps cover your ownership if a covered title defect appears later, subject to policy terms and exceptions.
Who usually pays for the owner’s policy in Londonderry?
- It varies by contract and local custom in New England; make sure your purchase and sale agreement specifies who pays title-related costs in your 03053 transaction.
What does a title commitment show?
- It outlines what the insurer will cover, lists exceptions like liens or easements, and states requirements that must be met before issuing the final policy.
Should I get a survey in Rockingham County?
- Many buyers review or order a survey if boundaries, fences, driveways, or access are unclear; survey-related endorsements may depend on having current survey information.
