General information, not legal advice

Title Insurance in Tennessee

When you buy a home in Manchester or anywhere in Coffee County, one of the line items you will see is title insurance. Many buyers sign for it without knowing what it covers or that part of it is a choice. This guide explains title insurance and the title search in plain English, based on the federal Consumer Financial Protection Bureau (CFPB), the Tennessee Code, the Tennessee Department of Commerce and Insurance and the Coffee County Register of Deeds.

This is general information, not legal advice. Your closing attorney or title company can explain your own title and policy.

What title means

When you buy a home, the seller signs a deed that transfers their legal ownership, or title, to you. The CFPB explains that title insurance can protect you if someone later claims an interest in the home from before you bought it. Its examples are a past owner's unpaid taxes and contractors who say they were not paid for work done on the home before your purchase.

Two kinds of policies

Lender's policy. The CFPB says lender's title insurance is usually required to get a mortgage. It protects the lender against problems with the title, up to the amount it lends. It does not protect your equity, and the CFPB notes that if someone sues with a claim against your home, you are the first person responsible.
Owner's policy. An owner's policy is optional. The CFPB says it can help protect your own financial investment in the home, and that if you buy both policies, the total cost is usually lower when the same provider issues both.

Paying cash? With no loan, there is no lender's policy to require, so the owner's policy is the only title insurance in the picture, and whether to buy it is your call.

The title search

Before a title policy is issued, someone has to check the public records. Tennessee law (TCA 56 35 129) says no title insurance policy may be issued until the title insurance company has had a reasonable search and examination of the title done.

Here in Coffee County, deeds, deeds of trust, plats and other land records are recorded at the Register of Deeds, 1341 McArthur Street, Suite 2, in Manchester, (931) 723 5130. The Register's office says it does not perform title searches, the step needed to find out whether there is a lien on a parcel, and it suggests contacting a title company or an attorney for that. Its records are open to the public, and documents recorded since January 17, 1990 can be viewed through TitleSearcher on a subscription basis.

Tennessee's owner's title insurance notice

Tennessee has a specific rule for buyers. Under TCA 56 35 133, the person handling the settlement must get a written, separately signed statement from the buyer, at or before closing, that the buyer received notice that owner's title insurance may be available and either wants it or declines it. The form in the statute also has the buyer acknowledge that the settlement agent has no responsibility to the buyer for the status of the title.

The notice is not required in some transactions, such as foreclosures, sales by court decree, tax sales, and sales where the buyer has already chosen owner's title insurance or the seller is providing it. So if you see this form at closing, read it and make a real choice. Declining is a decision, not a formality.

How title insurance rates work in Tennessee

Filed rates. Every title insurance company must file its schedule of rates with the Commissioner of Commerce and Insurance, and no company or agent may charge a rate except under the rates in effect for that company (TCA 56 35 111).
The search charge is separate here. In counties with fewer than 175,000 people, the part of the charge for the search and examination is not part of the filed rate schedule and is not supervised by the Commissioner (TCA 56 35 129). Coffee County had 57,889 residents in the 2020 Census, so that rule applies here.
No rebates. Tennessee law (TCA 56 35 119) prohibits a title company or title agent from giving any part of a title premium to a lender, mortgage broker, real estate agent or broker, builder or developer.

I do not quote title premiums on this site. Ask each provider for a written quote and compare the bottom line total.

Shopping for title services

The CFPB calls title services the largest costs among the closing services you can usually shop for. They include title insurance, the title search and other costs of issuing the policy, and in most areas the fee for the closing agent who conducts your closing.

Find them on your Loan Estimate. Title service fees appear in section B or C on page 2 of your Loan Estimate. If they are in section C, you can shop for them. An owner's policy, if you choose one, appears in section H.
Your lender's list. Your lender must give you a list of providers for the services you can shop for. You can use one on the list, or a company not on the list if your lender agrees.
Compare totals. The CFPB notes that a title company may give you its own itemized list of fees that looks different from your Loan Estimate or Closing Disclosure. That does not mean you are being overcharged. The title related costs should add up to the same total, so compare the bottom line.
Ask for references. The CFPB suggests asking providers for a price quote and references from recent customers.

Who chooses the title company

The purchase contract usually says who will handle the closing, so talk it through before you sign. Under federal law (12 USC 2608), a seller may not require, as a condition of the sale, that a buyer using a federally related mortgage loan buy title insurance from a particular title company. Tennessee law (TCA 56 35 121) does allow attorneys, real estate agents and lenders to recommend title insurance. A recommendation from me is just that. You choose.

Who pays for which title charges is something your purchase contract settles, so read that part carefully. My buyer closing costs guide and seller closing costs guide cover the rest of the closing statement.

Check a license

Title insurance agents and agencies in Tennessee are licensed by the Tennessee Department of Commerce and Insurance. Under TCA 56 6 106, an individual applying for a title insurance line of authority must complete at least 30 hours of title insurance coursework and pass an exam. The Department's Verify license search at search.cloud.commerce.tn.gov lets you look up a license.

Protect your closing money from wire fraud

The CFPB warns that scammers send fake emails posing as a real estate agent, settlement agent or attorney, with false wiring instructions for closing funds. Its advice:

Before closing, agree in person or by phone with your trusted contacts, such as your agent and settlement agent, on how money will be sent.
Before you wire, confirm the instructions, including the account name and number, in person or by calling a phone number you agreed on earlier. Never follow wiring instructions in an email, and do not use phone numbers or links from an email.
Do not send financial information by email.
If it happens, call your bank or wire transfer company right away and ask for a wire recall, then file a complaint with the FBI Internet Crime Complaint Center at ic3.gov.

If you are selling

Clean title helps you close. The buyer's title search will turn up recorded liens and payoffs. If you know of an old lien, an unreleased loan, a boundary question or an heir who may have an interest, tell your closing attorney or title company early.
Inherited homes. If the home came to you through an estate, see my inherited home guide for who must sign and how title passes.
Your closing costs. My seller closing costs guide covers the payoff, prorations and recordation taxes.

How I help

I help you understand the title section of your contract and your Loan Estimate, keep the title company and lender on the same timeline, and flag questions early so they do not surprise you at the closing table. For legal questions about your title, talk with a Tennessee attorney.

Keep reading:

Fair housing note: title rules are the same for everyone, and I work with every buyer and seller.

This guide is general information from public sources, not legal advice. Laws and forms can change, so confirm the details with your closing attorney or title company.

Buying in Manchester or Coffee County?

I can walk you through the contract, the Loan Estimate and the closing timeline so nothing on the closing statement catches you off guard. Call or text me at (615) 497 1658, or get my free buyer guide below.

Common questions

Is title insurance required in Tennessee?

The CFPB says lender title insurance is usually required to get a mortgage. An owner title policy is optional. Under TCA 56 35 133, the person handling the settlement must get your signed statement that you were told owner title insurance may be available and whether you want it.

What is the difference between owner and lender title insurance?

A lender policy protects the lender against title problems, up to the amount it lends, and does not protect your equity. An owner policy can help protect your own investment if someone later claims an interest in the home from before you bought it, according to the CFPB.

Can I choose my own title company in Tennessee?

Usually, yes. The CFPB says title services are usually shoppable and your lender must give you a list of providers. Under 12 USC 2608, a seller may not require a buyer using a federally related mortgage loan to buy title insurance from a particular title company.

Are title insurance rates regulated in Tennessee?

Title insurance companies must file their rate schedules with the Commissioner of Commerce and Insurance and charge only the rates in effect (TCA 56 35 111). In counties under 175,000 people, such as Coffee County, the search and examination charge is not part of the filed rate schedule (TCA 56 35 129).

Does the Coffee County Register of Deeds do title searches?

No. The Register of Deeds says it does not perform title searches and suggests contacting a title company or an attorney. Its records are open to the public, and documents recorded since January 17, 1990 can be viewed through TitleSearcher by subscription.

How do I avoid wire fraud at closing?

The CFPB says to confirm wiring instructions in person or by calling a phone number you agreed on earlier, never to follow instructions in an email, and to call your bank right away and file at ic3.gov if money goes to the wrong account.

Matt Sargent is a Tennessee licensed affiliate broker with Keller Williams who helps buyers and sellers in Manchester and Coffee County. Call (615) 497 1658 or send a message.