Buying in Granby should feel exciting, not uncertain. Yet questions about ownership history, old easements, or a surprise lien can add stress fast. If you understand how title insurance works in Connecticut, you can protect your investment and close with confidence. In this guide, you’ll learn what title insurance covers, how the Granby process works, common local title issues, costs, and the steps to take before you sign. Let’s dive in.
What title insurance covers
Title insurance protects you against covered losses caused by defects in a property’s title that existed before closing. Common examples include unpaid liens, forged signatures, recording errors, or undisclosed heirs. Coverage begins at closing and looks backward in time, responding if a covered issue surfaces later.
You’ll see two policies:
- Owner’s policy. Protects your equity up to the policy amount.
- Lender’s policy. Protects your lender’s interest up to the loan amount. Lenders usually require this.
Title insurance is different from homeowner’s insurance. It does not address physical damage. It is a one-time premium you pay at closing, not an annual policy.
How it works in Connecticut
Where records are kept
Connecticut land records are maintained locally by Town Clerks and accessible through the state’s electronic land-records system. In Granby, searches typically include the Granby Town Clerk’s records and a statewide review to capture mortgages, deeds, easements, and liens that affect title.
Who orders and who pays
Custom varies across the state. In many Connecticut transactions it is common, but not universal, for the seller to pay for the owner’s policy. The lender’s policy is usually a buyer expense or financed into the loan. Your purchase agreement and local custom in Granby decide who pays, so confirm early in negotiations.
Timeline and key documents
- Title search and abstract. The title company or attorney reviews recorded documents.
- Title commitment. You receive a preliminary report before closing. It lists requirements to clear and exceptions that will remain unless addressed.
- Closing protection and recording. Your team may issue a closing protection letter, then coordinate recording your deed and mortgage with the Town Clerk after closing.
Review the title commitment well before closing so you have time to clear items and ask questions.
Common title defects in Granby
Issues you might see
- Liens. Unpaid mortgages, mechanics’ liens, or tax liens.
- Ownership disputes. Missing heirs or improperly executed past deeds.
- Public record errors. Incorrect legal descriptions or recording mistakes.
- Easements. Utility or access rights that affect how you use certain areas.
- Boundary problems. Encroachments or discrepancies between the deed and the ground.
- Use restrictions. Covenants or historic restrictions that limit changes.
- Unreleased mortgages or prior judgments.
- Unrecorded interests. Prescriptive easements or informal agreements.
Local examples that matter
Granby includes older farms and rural parcels with historic descriptions. Deeds may reference stone walls, trees, or old roads. That can make boundaries less precise until a modern survey confirms them. Long-used farm lanes or cart paths can lead to prescriptive rights. Conservation or agricultural preservation restrictions may limit subdivision or building. Some properties have buried utilities or shared well and septic easements that are recorded but not obvious on the ground.
Consider a few scenarios:
- You buy a historic farmhouse and later learn a neighbor claims a prescriptive right to use your driveway. If the use was long-standing but unrecorded, coverage depends on your policy and whether the matter was excepted.
- A recorded conservation restriction appears in your search. It limits your ability to subdivide, changing your plans.
- A prior mortgage release never made it into the record. The lender’s policy protects the lender, while your owner’s policy and the closing team work to clear it before or at closing.
Exceptions, endorsements, and clearing title
Standard exceptions
Title policies exclude certain risks. Common exclusions include governmental police powers like zoning, unrecorded easements, and environmental conditions. Your policy will also list specific recorded exceptions, such as existing easements, plats, or restrictive covenants.
Helpful endorsements in Granby
Endorsements add tailored protections to your policy. In a rural market like Granby, you may want to consider:
- Survey or boundary endorsement. Helpful where older metes-and-bounds descriptions exist.
- Access endorsement. Confirms legal access to a public road, important on flag lots or long driveways.
- Zoning or permit-related endorsements. Limited protections if zoning conformity is a concern.
- Covenants and restrictions endorsements. Clarify how recorded restrictions apply to your parcel.
Clearing issues before closing
Your title team will aim to remove or address exceptions and defects. Typical steps include recording prior mortgage releases, paying off liens, obtaining satisfaction of mechanics’ liens, and using corrective deeds or affidavits for chain-of-title gaps. If an exception cannot be removed, weigh the risk and ask whether an endorsement can reduce exposure.
Costs and fees to expect
Title insurance is a one-time premium based on coverage amounts. Owner’s policies commonly match the purchase price, while lender’s policies match the loan amount. Premium rates and allowable endorsements in Connecticut are regulated, and insurers file rates with the state. Additional fees may include title search and exam, recording, closing or escrow services, and any endorsements you choose. Actual Connecticut premiums vary, so request current figures from your title company and confirm who pays each cost in your purchase contract.
Granby due-diligence checklist
- Order the title search early and request the title commitment well before closing.
- Review every exception on the commitment and ask what it means in plain language.
- Obtain a current survey, especially for older or historic parcels with vague descriptions.
- Confirm conservation restrictions, agricultural easements, and any open-space limitations in the land records.
- Verify recorded utility and access easements. If access seems unclear, consider an access endorsement.
- Ask for seller affidavits and releases to clear known liens or judgments.
- Check with Granby’s Assessor, Planning and Zoning, and Health Department for septic, well, and any recorded assessments.
- Discuss endorsements tailored to your parcel’s risks, such as survey or access coverage.
- Spell out who pays each premium and fee in the purchase agreement.
- If problems arise, consult a Connecticut real-estate attorney and coordinate curative steps with your title company.
What to do before you sign
If you are evaluating a property in 06035, start your title work early, get the commitment in hand, and press for clear answers about every exception. Pair your title review with a current survey, especially if stone walls, long driveways, or historic references appear in the deed. Finally, confirm costs and who pays them in writing so there are no surprises on closing day.
When you want a calm, concierge experience from contract to closing, connect with a local advisor who manages details with care. For thoughtful guidance and a seamless process, reach out to Ellen Sebastian.
FAQs
Does title insurance in Granby cover zoning violations?
- No. Title insurance covers defects in the chain of title and recorded matters that impair ownership. Zoning enforcement is a governmental issue and is generally excluded, though limited endorsements may be available.
What if a Granby neighbor claims part of my yard after I buy?
- If the claim stems from a covered title defect, your owner’s policy may respond. For adverse possession or prescriptive rights, coverage depends on policy terms and whether the matter was recorded or excluded.
Do I need both owner’s and lender’s policies in Connecticut?
- Lenders typically require a lender’s policy. An owner’s policy is strongly recommended because it protects your equity. Without it, you lack insurance for many common title risks.
How long does an owner’s policy last in Connecticut?
- It protects against covered past defects for as long as you or your heirs hold an interest in the property. It does not expire while ownership continues.
Will the title company fix defects discovered before or after closing?
- Before closing, they often pursue curative steps like recording releases or corrective deeds. After closing, if a covered loss occurs, the insurer may defend your title or indemnify you within policy limits.
