In this episode of How to Sell Your Atlanta Home with Sage & Grace, host Judy Jernigan sits down with Kirsten Howard, a real‑estate attorney at GSH Attorneys, to demystify title insurance. They discuss why this often misunderstood policy is essential for both buyers and sellers, how to identify potential title issues before listing, and what homeowners should prepare to ensure a smooth closing.
Judy stresses that protecting your sale from hidden risks is just as important as finding a buyer.
Coverage Against Hidden Defects – Even after a thorough title search, hidden issues like unpaid liens, forged documents, unknown heirs, clerical errors and boundary disputes can surface years after purchase. Title insurance pays legal costs and financial losses needed to clear these defects.
Two Types of Policies – Lender’s title insurance protects the mortgage lender; owner’s title insurance protects the homeowner. Owners’ policies are optional but provide coverage for as long as the buyer owns the home. Lenders typically require title insurance as a condition of the mortgage.
One‑Time Cost – Title insurance is a single premium paid at closing, typically between 0.5 % and 1 % of the purchase price. It offers long‑term protection against costly legal claims.
Chain‑of‑Title Errors – Mistakes in deeds or missing signatures can hold up a closing; corrective deeds may be needed to remove deceased parties or ex‑spouses.
Missing Mortgage Assignments – When mortgage transfers aren’t properly recorded, title agents must track down documents to confirm the current lender.
Recorded Liens – Tax liens, HOA liens and mechanic’s liens must be paid or released; if a lien has been paid but the release hasn’t been recorded, title agents must obtain proof and file the release, causing delays.
Boundary Discrepancies & Encroachments – Easements or encroachments can trigger boundary disputes and legal claims. Buyers should order a survey to identify these issues before closing.
Enhanced Protection – Kirsten explains that enhanced owner’s policies may cover additional risks like post‑closing forgeries, restrictive covenant violations and zoning issues—giving sellers added confidence.
Document Checklist for Sellers – Gather your deed, mortgage payoff statements, release documents for any paid liens, HOA documents, and surveys showing property boundaries. Having these on hand helps attorneys clear issues quickly.
How Title Insurance Saves Deals – If an old lien or encroachment is discovered, title insurance can pay legal costs and claims to resolve the issue, allowing the sale to proceed. Without insurance, sellers or buyers might be forced to cancel or renegotiate.
Title insurance isn’t just a buyer’s concern—it offers tangible benefits for sellers:
Clears the Title – Purchasing an owner’s policy for the buyer shows that all issues have been resolved, reducing legal risk and increasing buyer confidence.
Expedites Closing – Lenders and buyers are more likely to proceed quickly when title insurance is in place. Clearing the title ahead of listing prevents last‑minute delays.
Enhances Marketability – Offering to pay for the buyer’s title policy can make your listing more attractive and help you compete with newer properties.
Understanding title insurance before you list can prevent unpleasant surprises, save thousands in legal fees and keep your sale on track.
Kirsten Howard – Partner, GSH Attorneys
Kirsten specializes in residential real‑estate transactions and title insurance. She guides homeowners, buyers and lenders through the closing process and ensures titles are clear.
• Website: gshattorneys.com
• Email: [email protected]
• Phone: (404) 207‑1620
Judy Jernigan – Sage & Grace Realty Group
Judy helps Atlanta homeowners sell for top dollar with less stress.
• Schedule a consultation: Use her calendar.
• Website: Sage & Grace Realty Group
• Home valuation: sageandgracere.com/home‑valuation
• LinkedIn: JudyStoneJernigan
Closing Costs Explained: Title Binder – Here, Judy differentiates a title binder from a title‑insurance policy. A title binder is a temporary form of coverage used in some transactions to bridge the gap between policies; it’s common for investors who plan to resell quickly. The article notes that, unlike title insurance, a binder merely reflects an insurer’s commitment to issue a policy later and isn’t a substitute for actual title coverage.
“Judy is amazing and truly cares about her clients. She kept us updated on offers and closings, worked tirelessly to get us the best deal, and helped us close quickly”.
Another client praised her proactive, communicative approach, making the closing process smooth and stress‑free.
Ready to protect your sale from hidden risks? Reach out to Judy today and learn how title insurance can provide peace of mind and keep your transaction on track.
[Judy] Learn how title insurance safeguards your property transaction and protects homeowners from unforeseen legal issues. Get clear, actionable advice directly from an experienced real estate attorney who knows the ins and outs of the industry. Understand why title insurance is essential for ensuring a smooth closing and protecting your financial future. If you're serious about making the most of your home sale, this is a must listen. Selling a home isn't just about putting up a for sale sign. It's about strategy, marketing and negotiation. But how do you know if you're making the right moves? I'm Judy Jernigan, recognized among the top 5% by the Atlanta Realtors and your host of How to Sell Your Atlanta Home with Sage and Grace, smart homeowner strategies, successful real estate sales. With a background in broadcasting, negotiation and education, I bring a unique perspective to home sales, helping homeowners sell faster for top dollar and with less hassle while understanding not just the financial side, but also the logistical and emotional considerations of a move. This show helps you plan ahead, navigate the market and work more effectively with a realtor like me. You'll get expert insights from my guests, plus real actionable strategies to sell with confidence. Now here's the show moving you forward with Sage advice and grace. Selling your home in Atlanta can be smooth, fast and profitable experience with the right guidance. I'm Judy Jernigan, founder and team lead of Sage and Grace Realty Group, a partner at Clario Real Estate and a licensed real estate broker in both Georgia and North Carolina. This series is dedicated to providing homeowners with the tools and knowledge needed for a successful home sale. Now I'm joined by Kirsten Howard, a real estate attorney and partner in the law office of Goggins, Stutzman, Hudson, Wilson and Mize. Kirsten's expertise lies in residential real estate, where she represents homeowners, homebuyers and lenders through every phase of the process. Prior to joining GSH attorneys, Kirsten was a partner at Partnership Title in Atlanta, Georgia. So she is a true title insurance expert. So thank you so much for doing this. Thank you for having me. So we all know that title insurance is a big part of a home sale, but many homeowners don't really fully understand what it is or why it's so important. So could you start by explaining what is title insurance? [Kirsten] Sure. So there are two types of title insurance, owners and lenders, and they're two separate policies. And the lender's policy protects the lender for any issues that come up on title. It protects them up to their loan amount so they could recover that amount. Then the owner, and that's required. So you will be required to get title insurance for the lender if you have a loan. The owner's title insurance is optional, but it protects the owner's interest in the property as long as they own it. So it's a one-time premium, good for as long as you own the property. And it protects your interest in the property from any sort of title defect that may not have been discovered as doing the closing, but it's discovered later. And the title insurance company will pay to defend your ownership in the property. [Judy] So you mentioned things that are discovered before a closing. So can you talk a little bit about what the process is leading up to a closing? What sort of research is done before a title insurance policy is issued? Sure. [Kirsten] So we do a title examination. So someone goes out to the courthouse where the property is located and they search not only the deed records to see everyone who's owned the property for the last 50 years is how long we go back, but they also search any sort of mortgages that are on title that show if they owe money to a lender. Then we also search the records that show if there's any lawsuits against any of the parties. And that goes back seven years because that's how long the lawsuit lasts. And we search anyone who's owned the property in the last seven years because any of those can attach to the property. We also search the tax records to make sure all the property taxes are paid. So all of that is done. However, there are things that can be missed even by the best title examiner. And so that would be covered by the title insurance. Or if something is mis-indexed by a clerk of court, which can also happen with all the paperwork that goes through there that we wouldn't find because it was out of order or indexed incorrectly, that would be covered by title insurance as well. [Judy] This is a lot of work that is actually somebody going down to a physical courthouse happening behind the scenes. A lot of people don't even know how much work and time goes into it. [Kirsten] A lot of it's online now, but there are things they still go to the courthouse for. But another thing that's covered by title insurance, if you get an enhanced title insurance policy, is our survey issues. And so a lot of people don't want to pay to get a survey, even though we always recommend it. I know you do too. If you don't get a survey and then you later discover that there's some sort of an encroachment like a fence is built onto your property line or a driveway is over, we see that quite a bit. And you can use your title insurance. The title insurance company will pay to deal with the property owner where the encroachment is to have that removed. [Judy] So if you learn after you bought your home and lived there for a little bit that the fence that came with the house is actually on the neighbor's property and you need to move your fence, your title insurance might help cover those costs. [Kirsten] Correct. A lot of times we see it where there isn't a fence and they want to put one in later and they get a survey after closing and then discover there's some sort of an issue. So whatever that issue is with regard to the boundary lines, the title insurance will pay to fix it for you. [Judy] Do you have some other anecdotal stories of when title insurance has been a big help? [Kirsten] Well, this hasn't happened to me in particular, thank goodness, but you hear of stories of forgeries. So in other words, like a divorced couple, he forged his wife's signature on a power of attorney that allowed him to sign the documents at closing. Turned out the power of attorney was not valid. She came back later, property was already in the new buyer's names. She came back wanting her 50% interest in the property. That's something we would not know that happened and neither would the buyers, but yet they would be protected for that. So that's one example. [Judy] That's a good example. What are some examples of things that are not covered by a title insurance? [Kirsten] So that would be anything basically what they call post policy. So anything that happens after the buyer purchases the property, they are then responsible for it going forward. So in other words, future property taxes, future liens that are the buyer's responsibility, those are not covered. It's only things that are in the past. [Judy] Okay. So this is part of our home sellers series. And in terms of our standard purchase contracts that we use here in Georgia, what does the contract say as far as what a homeowner or a home seller is responsible for when it comes to their title and title insurance at closing? [Kirsten] So it says that the seller agrees to deliver good warrantable title that has no exceptions. And when they say exceptions, they mean title insurance exceptions. So this buyer would not be required to proceed with purchasing the property if there were any title issues that they weren't okay to take on. So that's why when we do our title exam, we would notify the buyer. They can either say, yes, I'll go ahead and take that. And I know it's an exception. In other words, it wouldn't be covered by my title insurance or no seller I'm going to terminate and they get to keep their earnest money. [Judy] Can you talk a little bit more about an example of what is an exception or what an exception could be? [Kirsten] An exception would be something like a driveway encroachment that we know about that is an exception on title that they may or may not want to take. A lot of times we see it with like a fence overlap and a fence encroachment or a wall that's built right on the property line and it's on both. That may be something that they say, no problem. I'll move it if I have to in the future. No big deal. But some people may say, no seller, I want you to move that now prior to closing. And they're within their rights to request that because that would technically be an exception. [Judy] So when a home seller is trying to sell their home and an issue arises, can the policy that they got when they first bought help them? [Kirsten] Sometimes. So we see this a lot where there are open mortgages on title. So for example, maybe a prior owner had a loan with a bank who has since gone out of business and they just, the loan was paid off, but they never filed a release like they were supposed to. So a lot of times we'll go to the seller and say, do you have a title insurance policy? If they do, we can then just insure over that because the title insurance company will take the risk on that basically. So to insure, say that again, if you're insuring over something. If you're insuring over it, you know it exists, but the title insurance company is saying that's okay. We're accepting that risk. We will cover it if someone were to claim that that was an issue, but we're going to let you go ahead and insure it and close. I think that happens more often than people realize. And it's so easy. If you have a title insurance policy as a seller, we can just call you, get that, or you can even call the prior closing attorney and get it and move on. Whereas if you don't have it, we can still usually close, but we have to do a lot more research into finding that lender or whoever is handling the records for that lender now and getting a release filed by them, which can add weeks or months to your closing date. [Judy] You mentioned a standard policy versus an enhanced policy, and you've got a handout that you can just message me and I can share this with anyone who'd like it. What's the difference between standard versus enhanced? [Kirsten] So there's two types of owner's title insurance, standard and enhanced. The standard policy has far less coverage, but is also less expensive. The enhanced policy, which is sort of what we default to, and I think that's also mentioned in the GART contract, that that's what you'll get. It has far more coverage and the most important additional coverage that it has is the survey coverage that we discussed before. However, it is a more expensive premium, but most people do want to go with the enhanced policy. The only time you'd want to maybe do a standard policy is if you're buying a condo, for example, where you don't ever need survey coverage, obviously. You can save some money that way. [Judy] Is title insurance something that a home buyer should shop around for? [Kirsten] No, because all the title insurance companies are within a few dollars as far as the premium amount, so there's not going to be any big change between title insurance companies. It's all promulgated through the Georgia Insurance Commissioner, so they're very similar. [Judy] When closing on a home, when that new homeowner purchases their title insurance, how long is their policy good for? As long as they own the property. Perfect. Any other final advice to homeowners on protecting themselves as they plan ahead to sell their home? [Kirsten] I think get all your documents in place, copy of your deed, a copy of any releases if you've paid off mortgages and you've gotten paid in full letters that have those handy. A copy of your title insurance handy is always good. I think a lot of people just pack up all their documents, getting ready to move, and then when we call them and say we need something, it's already somewhere they can't find it. Before you get that far along, pull all those things out. That's a great question. [Judy] Make sure it's not in a storage unit somewhere. [Kirsten] Exactly. Great. Thank you for this. Thank you, Judy. Where can people find you? I'm at Goggins, Stutzman, Hudson, Wilson & Mize. It's gshattorneys.com. Email is khoward at gshattorneys.com. And our phone number is 404-207-1620. Perfect. [Judy] Thank you. Thank you. Unlock the secrets to selling your Atlanta home with confidence and clarity. Join me, Judy Jernigan, founder and team lead of Sage & Grace Realty Group, as I guide homeowners through their pivotal roles in the selling process. Gain the knowledge you need to effectively collaborate with your realtor, understand market trends, and prepare your home to attract the right buyers. Thanks for joining us on How to Sell Your Atlanta Home with Sage & Grace. I'm Judy Jernigan, and I love helping homeowners sell smarter with less stress and better results. Who do you know with real estate questions? Please connect us so we can make confident, well-informed decisions and get the best possible outcomes together. If you enjoyed this episode, be sure to like, subscribe, and leave a five-star review. It helps more homeowners get the smart strategies they need for a successful sale. Head to sageandgracere.com to learn more about working with me and the Sage & Grace Real Estate Team. Explore all our show episodes. 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