Title Insurance in KC: What Buyers Should Know

Buying a home in Fairway is exciting, but title insurance can feel like a black box. You want clarity on what you are paying for, who it protects, and which exceptions matter on older Johnson County lots. In this guide, you will learn the difference between owner and lender policies, how premiums are set in Kansas, and the common exceptions you should review before closing. Let’s dive in.

Title insurance basics in Fairway

Title insurance protects you from financial loss caused by title defects that existed before your closing but were not known at the time. These can include undisclosed liens, recording errors, forged signatures, or claims from prior owners. Unlike other insurance, you pay a one-time premium at closing and coverage lasts as long as you or your heirs hold an interest in the property.

Two policies are commonly issued at closing:

• Owner’s policy protects your equity and your right to quiet enjoyment of the property.
• Lender’s policy protects your lender’s security interest up to the loan amount.

What a title search finds

Title professionals search public records for deeds, mortgages, judgments, liens, easements, plats, and probate matters. The search identifies recorded items that affect title. It does not reveal unrecorded easements, oral agreements, or physical encroachments without a current survey. The title company issues a commitment with exceptions and may require curative steps before issuing the final policy.

Owner vs. lender policies

What each policy covers

An owner’s policy typically covers up to the purchase price and includes defense costs for covered claims. A lender’s policy covers up to the outstanding loan balance and ends when the loan is paid off or refinanced. It is common to issue both in the same transaction.

Why you need both

A lender will require a lender’s policy. An owner’s policy is optional yet strongly recommended because the lender’s policy does not protect your equity. Without an owner’s policy, you would not have insurer-funded protection if a covered defect later impacts your fee simple ownership.

Who typically pays in Johnson County

Payment for the owner’s policy is negotiable and driven by local custom. On the Kansas side, including Johnson County and Fairway, buyers commonly pay for the owner’s policy. On the Missouri side of the metro, sellers often pay. Custom can shift with market conditions, so confirm who pays in your contract.

Premiums in Kansas

Title insurance rates are regulated at the state level. In Kansas, insurers file rates and forms with the state regulator, which makes premiums predictable for a given policy amount. Because of rate filings, your title officer can quote exact premiums once they know the purchase price and loan amount.

Premiums are a one-time charge at closing and are based on:

• Policy amount: owner policy tied to purchase price, lender policy tied to loan amount.
• Filed rate schedules that may use tiered per-thousand pricing.
• Available discounts, such as simultaneous issue credits when both policies are issued together.
• Possible reissue rates if a recent owner’s policy exists on the property.
• Added costs for endorsements or expanded coverage.

Fairway-specific notes

In Fairway, many homes sit in older subdivisions recorded with plats and restrictive covenants. Expect standard exceptions for utility or drainage easements and building setback lines. If the seller has a recent owner’s policy, you may qualify for a reissue credit, subject to state rules and the insurer’s guidelines. A local title officer can confirm any discount and itemize endorsement costs.

Common exceptions to expect

Title commitments list exceptions that are not covered by your base policy.

Standard exceptions

• Matters shown by public record, such as recorded easements and covenants.
• Matters not shown by public record, including unrecorded easements or claims by parties in possession.
• Survey matters, like boundary discrepancies or encroachments, unless a survey and endorsement are obtained.
• Unpaid real estate taxes and assessments, plus items that become assessable after the policy date.
• Mechanic’s liens for work done after the policy date unless specific endorsements are added.

Johnson County items

• Utility and drainage easements on recorded plats are common on Fairway lots.
• Covenants, conditions and restrictions may limit use and appear as standard exceptions.
• Plat-related items, such as setbacks, dedicated streets, and alleys, can affect future improvements.
• A survey endorsement is often requested if there are fences, driveways, or improvements near lot lines.

Kansas vs. Missouri differences

State statutes differ on recording, marketable title, and marital property rights, which can affect title clearance. Coverage and fees for some endorsements also vary by state. Local custom on who pays the owner’s policy differs across the state line, as noted above.

Fairway buyer steps

Before you go under contract

• Ask who will handle closing and whether the seller has a recent owner’s policy that could qualify you for a reissue rate.
• Negotiate who pays for the owner’s policy and include it in the contract.

When you open escrow

• Review the title commitment, especially Schedule B exceptions, and ask your agent or a real estate attorney to explain anything unclear.
• Order a current survey or, if relying on an existing survey, request a survey endorsement if available.

Endorsements to consider

• ALTA survey endorsement when you have a current survey.
• Access or portions-of-title endorsements if driveway or alley access is a question.
• Covenant or HOA endorsements to address limited risks related to CC&Rs.
• Gap coverage if there is a delay between the last record search and recording after closing.

Fairway scenarios to learn from

1. Older bungalow with a decades-old mortgage release issue: the title company may need curative recordings or a quiet title action. Your owner’s policy can protect you if a covered defect surfaces later, but you should understand how the exception will be addressed before closing.

2. Driveway overlapping a platted utility easement: the easement will appear as an exception. A current survey can confirm encroachment. You may address it with a survey endorsement or a negotiated modification of the easement.

3. Recent owner’s policy on the property: you may qualify for a reissue credit for the owner’s premium, subject to the insurer’s rules.

Questions to ask the title company

• Will both owner’s and lender’s policies be issued at closing, and what are the premiums for each?
• Are simultaneous issue credits or reissue rates available in this transaction?
• Which exceptions will remain on the owner’s policy, and which endorsements do you recommend?
• What curative steps are required, if any, to clear liens or defects before closing?

The payoff for getting this right

When you understand how title insurance works in Fairway, you can choose coverage that protects your equity and reduces surprises after closing. You will know which exceptions matter, what endorsements to request, and how local custom affects who pays. This clarity helps you close with confidence on a property you love.

Ready to talk through your specific Fairway purchase and title options? Connect with The Gamble Group for clear guidance and a smooth path to closing.

FAQs

Do Fairway buyers need an owner’s policy?

• An owner’s policy is optional but recommended because a lender’s policy protects only the lender’s interest, not your equity.

When is title insurance paid in Kansas?

• The premium is a one-time charge paid at closing and coverage lasts as long as you or your heirs hold an interest in the property.

Will title insurance cover a fence encroachment?

• Not by default; encroachments typically require a current survey and may need a survey endorsement to obtain coverage.

Can title commitment exceptions change before closing?

• Yes; items can be cured and removed as conditions are met, and the title company will outline requirements before issuing the final policy.

What happens if a defect appears after closing?

• If the defect is covered, the insurer will defend your title and pay losses up to the policy amount, subject to your policy and endorsements.