Residential Real Estate Transactions

Who pays for an owner’s or lender’s title insurance policy depends on the Purchase & Sales Agreement, transaction terms, and the policy being issued. Title insurance protects against covered losses from certain past title problems, such as undisclosed liens or defects in the public record; the policy controls its coverage and exclusions.

A title search is the examination of public records to identify ownership, liens, and other matters affecting title before closing. Title insurance is a policy that may protect against covered title defects that exist despite the search or are otherwise covered by the policy.

A title commitment describes the proposed insurance coverage and lists matters that must be addressed or accepted before the policy is issued. It can reveal liens, easements, restrictions, covenants, and other recorded matters that may affect ownership, use, or value.

The Purchase & Sales Agreement sets important obligations, contingencies, timing, and risk-allocation terms for the transaction. Reviewing it before signing gives a buyer a chance to understand the language and raise questions while changes may still be possible.

In Rhode Island, a buyer has the right to select their own title attorney, and the lender cannot dictate who they use. A buyer should confirm that the selected attorney satisfies any lender requirements while remaining independent counsel for the buyer’s interests.