Buying or selling a home in Tacoma comes with a lot of new terms, and “title insurance” is one that often raises eyebrows. You want a smooth closing without surprise liens or last‑minute delays. In this guide, you’ll learn what title insurance actually covers, the difference between lender and owner policies, typical costs and who pays in Pierce County, and how title work fits into your closing timeline. Let’s dive in.
What title insurance is
Title insurance is a one-time policy that protects you against certain past problems with a property’s title, like undisclosed liens, forged signatures, unknown heirs, or recording errors. It protects against defects that already exist, not future issues or the physical condition of the home. For a plain-English overview, read the Washington Office of the Insurance Commissioner’s guide to title insurance and the American Land Title Association’s consumer resources.
In Pierce County, title searches are run against county records held by the Pierce County Auditor. In Tacoma’s older neighborhoods, title work sometimes uncovers things like historic easements, vacated alleys, or older deeds that need clarification. Title companies sort these items before closing whenever possible.
Lender vs. owner policies
Lender’s policy
- Purpose: Protects your mortgage lender’s interest up to the loan amount. Most lenders require it.
- Duration: Lasts until the loan is paid off or refinanced.
- Coverage: Defects that challenge the lender’s lien priority or validity. It does not protect your equity.
Owner’s policy
- Purpose: Protects your ownership rights and equity. It is optional but strongly recommended.
- Duration: A single premium provides protection as long as you or your heirs hold an interest.
- Coverage: Past liens or encumbrances, undisclosed heirs, forgery, improper conveyances, and some recording or surveying errors, subject to policy terms.
What policies usually do not cover
Title insurance usually excludes items listed as exceptions in the title commitment, such as recorded easements, covenants, or restrictions. It does not cover zoning or building code issues, physical defects, or environmental conditions. Some unrecorded interests may be covered only with specific endorsements at an added cost. Policies are typically based on ALTA forms with state-specific language, and endorsements can be added when needed.
Costs and who pays in Tacoma
Title insurance is a one-time premium paid at closing. The owner’s policy premium is generally based on the purchase price, and the lender’s policy is based on the loan amount. Exact premiums depend on the insurer’s filed rates. Ask your title company for a written, itemized estimate early in the process.
Who pays is negotiable and varies by local custom. In parts of the Pacific Northwest, sellers often pay for the owner’s policy, while buyers typically cover the lender’s policy. In Tacoma and Pierce County, practices vary by contract and market norms, so make sure your purchase agreement clearly states who pays for each policy.
Other closing costs tied to title work include:
- Escrow or closing fees charged by the title or escrow company.
- Recording fees to file deeds, deeds of trust, and releases with the Pierce County Auditor’s Recording office.
- Payoffs for any liens or unpaid property taxes revealed in the title search.
- Real Estate Excise Tax (REET), usually a seller cost in Washington. Confirm current rules and rates with the Washington Department of Revenue’s REET page.
How title fits into Pierce County closings
After you have a mutually accepted offer, the title company orders the title search and issues a preliminary title report, also called a title commitment. You typically receive this within a few days to 1–2 weeks, depending on complexity. If the commitment lists exceptions or defects, the title company works to clear them before closing.
Here is a typical flow you can expect:
- Day 0–3: Title search ordered after acceptance.
- Day 3–10: Preliminary title report delivered to both parties.
- Day 10–30: Clearing exceptions, obtaining HOA documents and payoff statements, and lender underwriting.
- Closing date: You sign, funds are disbursed, and documents are recorded with the county.
- Post-closing 1–3 weeks: Recording posts to public records; the lender’s policy is sent to the lender, and your owner’s policy is issued to you.
If title issues pop up, like an old unreleased mortgage or a probate question, plan for a few extra days or weeks to resolve them.
Common Tacoma title issues and fixes
Tacoma and Pierce County have a rich history, and older records sometimes need cleanup. Here are issues that surface and how they are usually handled:
- Older deed chains or ambiguous conveyances. How it is handled: Title officers may request corrective deeds or affidavits to confirm ownership.
- Recorded easements, rights-of-way, or alley vacations. How it is handled: These typically remain as exceptions unless endorsements apply; your team reviews how they affect access or building plans.
- Mechanic’s or judgment liens. How it is handled: The lien must be paid or released at closing from seller proceeds.
- Probate or missing heirs. How it is handled: Court documents or authority to convey must be provided, or claims resolved before closing.
- Unreleased mortgages or trust deeds. How it is handled: Title secures payoff or recorded releases to clear the record.
- Boundary or encroachment questions. How it is handled: A current survey may be requested and endorsements considered; sometimes the parties negotiate solutions like an easement.
- HOA or condominium assessments. How it is handled: Unpaid amounts are identified and settled at closing; covenants are usually listed as exceptions.
If an item cannot be cured, it stays as an exception in the title commitment. You can proceed with full knowledge, negotiate a remedy, or opt out subject to your contract.
What to do as a buyer or seller
Provide these items early
- Buyers: Government photo ID, proof of funds, lender contact, and entity documents if buying in a trust or LLC.
- Sellers: Current deed, payoff information for mortgages or HELOCs, HOA contact and resale docs, and info on any recent repairs or permits.
Key questions for buyers to ask
- When will I receive the preliminary title report, and who will review it with me?
- What exceptions are listed, and how will they be cleared?
- Exactly how much is the owner’s policy, and who customarily pays in Pierce County?
- What does the owner’s policy cover, and which endorsements are recommended for this property?
- Are there recorded liens or unpaid taxes, and how will they be handled?
- What are the estimated recording fees and disbursement timelines in Pierce County?
- Who is handling escrow, and where are funds held?
- How long will title work take, and what could delay closing?
Key questions for sellers to ask
- What title issues do I need to resolve before closing?
- Am I paying for the owner’s policy, and what will that line item look like on my closing statement?
- Are there old liens, HOA balances, or unpaid bills that must be cleared?
- Do any recorded easements or city vacations affect the sale or buyer’s plans?
Smart negotiation tips
- Request an itemized closing-cost estimate early and decide in your offer who pays which title premiums.
- If you want added protection, ask about endorsements and their cost and timing.
- If defects are found, negotiate repairs, payoffs, or price adjustments rather than taking on unexpected risk.
Local resources you can trust
- Title insurance basics and consumer rights: Washington Office of the Insurance Commissioner
- Title insurance coverage and policy forms overview: American Land Title Association consumer resources
- Recording deeds and fees: Pierce County Auditor Recording
- Property taxes and payment status: Pierce County Assessor-Treasurer
- Real Estate Excise Tax rules and rates: Washington Department of Revenue REET
Closing in Tacoma should feel straightforward, not stressful. When you understand what title insurance covers, who it protects, and how it fits into your Pierce County closing, you can move with confidence. If you want a second set of eyes on your title commitment, clear guidance on who pays which costs, or a referral to a reliable local title and escrow team, reach out to Spruce Home Group. We’re here to help you close smoothly.
FAQs
What does title insurance cover for Tacoma homes?
- It protects against certain past title defects like undisclosed liens, forged documents, unknown heirs, or recording errors, subject to policy terms and listed exceptions.
Do I need an owner’s policy if my lender already has one?
- Yes if you want your equity and ownership rights protected; a lender’s policy only protects the lender up to the loan amount.
How much does title insurance cost in Tacoma?
- Premiums are one-time and based on price or loan amount; exact rates vary by insurer. Ask your title company for an itemized quote early.
Who usually pays for title insurance in Washington?
- It is negotiable. In some areas sellers pay for the owner’s policy and buyers pay for the lender’s policy. In Tacoma, confirm the custom in your contract.
How long does title work take in Pierce County?
- Many commitments arrive within a few days to 1–2 weeks after mutual acceptance, with extra time added if issues need to be cleared before closing.
What if my preliminary title report shows a lien?
- The title company will typically arrange payoff or a recorded release at closing. If it cannot be cleared, it may remain as an exception you must address or negotiate.
