Ohio Title Company Pre-Closing Documents Explained: Deeds, Title Insurance, and Optional Coverages

by Tom Garuccio

Ohio Title Company Pre-Closing Documents Explained: Deeds, Title Insurance, and Optional Coverages

Buying a home in Ohio comes with a stack of paperwork before closing. Many buyers receive a questionnaire from the title company asking them to make decisions about how they'll take ownership of the property, what type of title insurance they want, and whether they want additional protection options.

If you're looking at those forms and wondering what any of it means, here's a simple breakdown.

What Is a Title Company?

A title company serves as a neutral third party during the transaction. Their job is to:

Research ownership history of the property
Verify there are no unpaid liens or ownership disputes
Prepare closing documents
Handle escrow funds
Record the deed with the county after closing
Issue title insurance

Think of them as the company making sure you actually receive clear ownership of the property.

Choosing How You Take Title

One of the first questions you'll see is how the deed should be prepared.

General Warranty Deed

This is the most common deed used in residential real estate transactions.

With a General Warranty Deed, the seller guarantees:

They legally own the property
They have the right to sell it
There are no undisclosed liens or ownership claims
They will defend your ownership if a title issue arises

This provides the strongest protection for a buyer.

General Warranty Deed with Joint & Survivorship

This option is typically chosen when two people are purchasing together, such as:

Married couples
Unmarried partners
Family members

The key feature is the right of survivorship.

What does that mean?

If one owner passes away, their ownership interest automatically transfers to the surviving owner.

For example:

Tom and Sarah purchase a home as Joint Tenants with Rights of Survivorship.

If Tom passes away, Sarah automatically becomes the sole owner.

The property does not go through probate for Tom's ownership interest.

Advantages

Avoids probate on the home
Simplifies inheritance
Common choice for spouses

Potential Drawbacks

Ownership automatically transfers regardless of what a will says
May not fit every estate planning situation

If buyers are purchasing in a trust, LLC, or another entity, they should discuss vesting with their attorney, lender, and title company.

What Is Title Insurance?

Most buyers understand homeowners insurance protects against future damage.

Title insurance is different.

It protects against problems that already existed before you bought the home but were unknown at the time of closing.

Examples include:

Forged signatures
Recording errors
Undisclosed heirs
Unknown liens
Ownership disputes
Clerical mistakes in public records

Unlike homeowners insurance, title insurance is typically a one-time premium paid at closing.

Standard Title Insurance Coverage

A standard owner's policy protects against many common title defects, including:

Someone else claiming ownership rights
Improperly executed documents
Pre-closing forgery or fraud
Recording errors
Undisclosed restrictive covenants
Certain liens and judgments
Unmarketable title

For most residential purchases, standard coverage provides substantial protection and is what many buyers choose.

Enhanced Title Insurance Coverage

Many Ohio title companies now offer an Enhanced Owner's Policy.

According to the comparison provided by Infinity Title Solutions, enhanced coverage typically costs about 10% more than a standard owner's policy while providing significantly broader protection.

Enhanced coverage adds protection for issues such as:

Building Permit Violations

Suppose a previous owner finished a basement or built a deck without proper permits.

Enhanced coverage may provide protection if that issue creates a title-related loss.

Encroachments

Imagine discovering after closing that:

A neighbor's fence crosses onto your property
Your garage extends over a property line
A structure violates setback requirements

Enhanced policies may provide coverage for certain encroachment-related issues.

Unrecorded Easements

An easement allows someone else to use part of your property.

Enhanced coverage may provide protection if an easement wasn't properly disclosed or recorded.

Post-Closing Forgery and Fraud

Standard policies primarily focus on issues that existed before closing.

Enhanced policies may also cover certain post-policy events, including:

Forgery
Fraud
Clouds on title
Adverse possession claims
Prescriptive easements

Increased Coverage Amount

One of the more attractive enhanced benefits is automatic appreciation coverage.

Enhanced policies may increase protection up to 150% of the original policy amount over time. For example, a home purchased for $300,000 could eventually have coverage approaching $450,000.

Should You Choose Standard or Enhanced Coverage?

There is no universal right answer.

Standard Coverage May Be Appropriate If:

Budget is a major concern
The property is relatively straightforward
You're comfortable with traditional title protection

Enhanced Coverage May Be Worth Considering If:

The property has additions or improvements
It's an older home
Property lines may be questionable
You want broader protection against future title-related issues
The additional premium is relatively small compared to the purchase price

Many buyers view enhanced coverage as a one-time upgrade that provides additional peace of mind for as long as they own the property.

ALTA 49 Endorsement

Some title companies offer an additional endorsement called an ALTA 49 Endorsement.

This endorsement typically provides specific coverage related to:

Forgery
Fraud
Certain future title risks

The cost is often a flat fee (many Ohio title companies charge around $150). Buyers should review the specific coverage provided by the title company before deciding. The exact benefits can vary by underwriter.

Closing Protection Coverage (CPL)

Another optional item often appears on pre-closing forms.

A Closing Protection Letter (CPL) protects buyers, sellers, and lenders against losses caused by:

Theft of settlement funds
Escrow misappropriation
Fraud involving closing funds
Failure to follow written closing instructions

The cost is usually relatively small compared to the protection provided.

Many buyers elect this coverage because it specifically protects the funds being handled during the closing process.

Common Questions Buyers Ask

"Can I change my mind later?"

Usually yes.

Most title companies allow buyers to change title insurance selections before closing.

"Do I need owner's title insurance if my lender requires lender's title insurance?"

Yes, they're different policies.

The lender's policy protects the lender.

The owner's policy protects you.

"Should married couples choose Joint & Survivorship?"

Many do because it simplifies ownership transfer if one spouse passes away. However, estate planning goals vary, so buyers should consult legal counsel when unsure.

Final Thoughts

Most Ohio buyers encounter three major decisions in their title company's pre-closing package:

How will ownership be held?
- Individual ownership
- Joint & Survivorship
- Trust or LLC ownership
What level of title insurance do you want?
- Standard Coverage
- Enhanced Coverage
Do you want optional protections?
- ALTA endorsements
- Closing Protection Coverage

These choices may seem minor during the excitement of buying a home, but they can have long-term implications for ownership rights, estate planning, and protection against future title issues.

The good news is that most title companies are happy to explain the options, and your real estate agent can help you understand how each choice may apply to your specific situation.