Buying a home in West Michigan should be one of the most exciting milestones in your life. But without title insurance, an unexpected legal claim or financial hiccup could turn your dream closing into a nightmare. Title insurance exists to protect buyers, sellers, and lenders from issues tied to a property’s past.
Unlike other types of insurance, title insurance is a one-time cost at closing that protects you for as long as you own the home. Here’s a deeper dive into why it matters in Michigan, the situations it covers, and how it can save you thousands.
Why title insurance matters in Grand Rapids and West Michigan
Every property has a history. Deeds change hands, taxes get recorded, surveys get filed, and sometimes mistakes get made. Title insurance is your safety net against issues buried in that history.
In Kent County and Ottawa County, we regularly see transactions slowed down or threatened because of unpaid liens, undiscovered heirs, or clerical errors. A solid owner’s policy keeps you protected if one of these problems surfaces after closing.
5 Sticky Situations Title Insurance Can Help You Avoid
1. A hidden lien pops up after closing
Imagine you just bought a house in Eastown or Wyoming, and a contractor files a lien for a roof replacement the previous owner never paid for. Without title insurance, you might be stuck paying it or fighting it in court. With coverage, your policy can take care of it.
2. A filing error in the public record
Even small mistakes can have big consequences. A misspelled name on a deed or an incorrectly indexed mortgage in Kent County’s records can create a “cloud” on your title. Title insurance pays to fix the record and protects your ownership.
3. An unknown heir makes a claim
An estate wasn’t settled properly years ago. You buy the home, and months later, a long-lost relative surfaces claiming they inherited the property. An owner’s title policy defends you against that claim and keeps your ownership intact.
4. A boundary or survey dispute with a neighbor
Maybe the fence in your Alger Heights backyard isn’t where the property line says it should be. A shed or driveway could be encroaching on the neighbor’s land. Depending on the policy, title insurance can cover the legal costs of resolving recorded boundary or easement disputes.
5. Fraud or forgery in a prior transfer
Unfortunately, real estate fraud isn’t just something you read about online. If a previous deed was forged or signed by someone without proper authority, your policy steps in to protect your rights.
Bottom line: Title insurance is a one-time premium that provides peace of mind for as long as you own the property.
Common Questions About Title Insurance in Michigan
What does title insurance cost?
Costs vary depending on the purchase price of the home and the type of policy. Most buyers pay between a few hundred and a couple thousand dollars. The key is that it’s a one-time premium at closing, not a recurring expense.
Who pays for title insurance in West Michigan?
Traditionally in our market:
Seller pays for the owner’s policy
Buyer pays for the lender’s policy
But this is negotiable in the purchase agreement.
Is title insurance required?
If you’re financing your purchase, your lender will require a lender’s policy. An owner’s policy is optional but highly recommended. Even cash buyers should strongly consider it.
When should I order title work?
Order it as soon as you’re under contract. Early title work allows time to fix issues without delaying closing.
Tips From Smallegan Real Estate
Pick a local title company that knows Kent and Ottawa County records and will answer your questions.
Review your title commitment. Ask about any exceptions you don’t understand.
Keep your policy safe. It protects you, not the lender, and it lasts as long as you own the property.
Buying or selling in Grand Rapids? Don’t leave your biggest investment unprotected. Our team works with trusted local title companies that explain documents in plain English and clear issues fast.
👉 Contact Smallegan Real Estate to discuss your next move and we’ll connect you with the right local title partner
