Are you worried about hidden issues in a home’s history derailing your closing or costing you later? If you are buying in Sherborn or the Cambridge‑Newton‑Framingham Metrowest corridor, that is a smart question to ask. Older titles, long ownership chains, and local betterments can create surprises. In this guide, you will learn what title insurance covers, what it costs in Massachusetts, local risks to watch for, and practical steps to take before you sign Purchase & Sale. Let’s dive in.
What title insurance covers in MA
Title insurance is a one-time premium you pay at closing that protects against covered title defects tied to the past, not future events. In Massachusetts, policies draw from public records at the county Registries of Deeds and, in some cases, the Massachusetts Land Court.
Owner’s policy (for you)
An owner’s policy protects your equity up to the insured amount, typically the purchase price. It can cover:
- Errors or omissions in the chain of title, like missing signatures or incorrect legal descriptions.
- Undisclosed recorded liens, including prior mortgages or judgments recorded before your closing.
- Fraud or forgery in earlier documents.
- Clerical or recording mistakes, such as misindexing.
- Legal defense costs if someone challenges your ownership and the claim is covered.
Coverage lasts as long as you or your heirs own the property.
Lender’s policy (for your bank)
A lender’s policy protects only the lender up to the outstanding loan amount. Most lenders require it, and you typically pay the premium at closing. It does not protect your equity, which is why many buyers add an owner’s policy.
What it may not cover
Standard policies have important exclusions. These often include:
- Matters you create or know about but do not disclose.
- Zoning or building code compliance and most survey matters, including boundary or encroachment disputes, without a survey endorsement.
- Easements and rights that are obvious on inspection or already recorded in the deed chain.
- Some unrecorded interests or certain government assessments and betterments unless shown in public records or endorsed.
Endorsements that matter in MA
You can add endorsements to tailor coverage to the property. Common options include:
- Survey endorsement to address encroachments or boundary disputes when you have a current survey.
- Zoning or ordinance endorsements for limited municipal issues.
- Gap coverage for the period between closing and recording.
- Mechanic’s lien endorsement if recent work suggests a risk of unfiled contractor claims.
- Reissue or enhanced coverage if the property was insured recently, which can reduce cost or expand protection.
Costs and timing in Sherborn and Metrowest
One-time premium and who pays
You pay title insurance once at closing. In many local transactions, you pay the lender’s premium because your lender requires it. Who pays the owner’s premium can be negotiated in the Purchase & Sale. Local custom varies, so spell out responsibilities in writing.
Typical price ranges
Premiums vary by insurer, endorsements, and whether you qualify for reissue credits. As a general reference many Massachusetts buyers see the owner’s policy amount to a small fraction of the purchase price. For example, on a $500,000 purchase, an owner’s policy often lands in the low‑$1,000s to mid‑$2,000s. On a $1,000,000 purchase, it is commonly several thousand dollars. The lender’s policy usually costs less because it only covers the loan amount. Always request written quotes from local title companies and ask about reissue credits.
When to order and review
- Order the title search during due diligence so you can review exceptions before you sign P&S, not just at closing.
- Your attorney or title company will issue a preliminary title report or commitment listing exceptions and required cures.
- The owner’s policy is paid at closing. The lender’s policy is ordered before closing per lender requirements.
Local title risks in Sherborn and Metrowest
Sherborn and the Cambridge‑Newton‑Framingham area include historic homes, mixed rural and suburban parcels, and evolving municipal infrastructure. That mix can create specific risks that make owner’s coverage valuable.
Older chains of title
Many homes date to the early or mid‑1900s or earlier, with long ownership chains. Old deeds may include vague legal descriptions or missing signatures. These can lead to conflicts that an owner’s policy can help address under its coverage terms.
Easements and rights-of-way
Historic footpaths, shared driveways, or utility routes are common. Some may be recorded, while others are based on long-term use. Expect the title report to list known easements. A careful review helps you understand how they affect access and use.
Boundary and encroachment issues
Irregular lot lines, older fences, additions near lot lines, or stone walls can spark boundary questions. Standard policies often exclude survey matters. If lines look unclear, consider a current survey and a survey endorsement.
Municipal betterments and liens
Towns can assess special charges for sewer or drainage projects. These betterments or related liens can appear on title or be pending. Confirm municipal lien status early to avoid surprises and make sure the right party pays at or before closing.
Conservation restrictions and Chapter 61 programs
Conservation restrictions and enrollment in programs such as Chapter 61, 61A, or 61B can limit use and may give the town rights of first refusal. These items are recorded and should appear in the title report. Make sure you understand any obligations or processes tied to them.
Probate and estate complications
Inherited properties sometimes come with unclear probates or missing heirs. Title insurance may help protect against certain defects in the recorded chain, but it is important to resolve known issues before closing whenever possible.
Registered vs. recorded land
Some parcels are registered in the Massachusetts Land Court, which issues a certificate of title. Registered land has a different, often stronger, title posture than unregistered recorded land in the county Registry. Your title team will adjust their exam accordingly. An owner’s policy can still be useful, even for registered land, to address covered risks and defense costs.
Condominium considerations
Condo buyers should review the association’s master policy and governing documents. An individual owner’s policy can help protect your unit’s value and your ownership interest.
Real-world examples where coverage helps
- You buy a 1920s farmhouse in Sherborn. A neighbor claims a historic right-of-way across a corner of the lot based on long-term use. A survey endorsement plus an owner’s policy can help manage defense costs and potential loss if covered.
- You purchase a home that just had major renovations. A contractor files a mechanic’s lien after closing. A mechanic’s lien endorsement can help address that risk.
- You acquire a home near a new sewer extension. A town betterment is authorized but not yet billed. A thorough title and municipal lien search helps you allocate responsibility before closing.
What to do before P&S
Use this checklist to reduce risk and keep your timeline on track:
- Order a preliminary title report early and review all exceptions. Ask the seller to cure or explain any items that could affect your rights or costs.
- Ask whether the property is registered in Land Court or recorded in the county Registry and how that affects the exam.
- If lot lines look unclear or structures sit near boundaries, obtain a current survey and request a survey endorsement.
- Request written quotes for owner’s and lender’s policies. Ask about reissue credits and the cost of endorsements that match the property’s risks.
- Define who pays for which premiums in the P&S, and require cures or escrow holdbacks for any defects that cannot be resolved before closing.
- Condo buyers should confirm what the master policy covers and decide whether an individual owner’s policy is appropriate.
- If title defects appear, consider your options: seller cure before closing, escrow with post‑closing cure, or specific endorsements if the insurer agrees.
- Involve a Massachusetts real estate attorney early for complex issues like probate, boundary disputes, or municipal betterments.
Should you buy an owner’s policy?
If you want to protect your equity, the short answer is often yes. A lender’s policy protects the bank, not you. An owner’s policy can help with defense costs and covered losses tied to past defects. In older New England markets like Sherborn and Metrowest, long histories and layered municipal work make this protection especially practical.
Work with a local guide
Choosing the right coverage and endorsements starts with understanding the property’s history and the local recording system. If you are planning a purchase in Sherborn, Cambridge‑Newton‑Framingham, or broader Middlesex County, get expert guidance on title, municipal checks, and negotiation strategy. For a clear, step‑by‑step plan, connect with David Castro to schedule a free consultation.
FAQs
Do I need owner’s title insurance if my lender already requires a lender’s policy?
- Yes. A lender’s policy only protects the lender. An owner’s policy protects your equity and typically covers your legal defense for covered claims.
Is title insurance a recurring cost in Massachusetts?
- No. Both owner’s and lender’s title insurance are one-time premiums paid at closing and do not renew annually.
When should I decide on owner’s title insurance in Sherborn or Metrowest?
- Decide during due diligence, ideally before signing P&S, so you can review title exceptions and negotiate cures or endorsements.
How much does an owner’s policy typically cost in MA?
- Cost varies by insurer and endorsements, but many buyers see low‑$1,000s to mid‑$2,000s on a $500,000 purchase; always request written quotes and ask about reissue credits.
What are common exclusions I should know about in Massachusetts?
- Standard policies often exclude zoning and building code issues, many survey matters, and certain unrecorded interests unless you add endorsements or they appear in public records.
How do Land Court and registered land affect title insurance?
- Registered land has a Land Court certificate of title and a different exam process. An owner’s policy can still be useful to address covered risks and defense costs.
Are there endorsements I should consider for older Metrowest properties?
- Consider a survey endorsement for boundary risks, a mechanic’s lien endorsement if there was recent work, and gap coverage. Ask your title team which apply.
Can I get a discount if the property was insured recently?
- Many insurers offer reissue credits if there was a recent policy. Ask local title companies what evidence they require and how the credit applies.
