Buying a home in St. Louis is a big move. If you have questions about title insurance, you are not alone. The terms, fees, and steps can feel confusing when you just want a smooth closing. In this guide, you will learn what title insurance covers in Missouri, what it costs, who typically pays in St. Louis, local risks to watch, and the endorsements and steps that protect you. Let’s dive in.
Title insurance basics
Title insurance protects you from covered title problems tied to past events that affect ownership. It is a one-time premium paid at closing, not a monthly bill. Coverage looks backward at the property’s history and helps protect you if a covered issue surfaces after you buy.
You will see two common policies. An owner’s policy protects your ownership interest, usually up to the purchase price, for as long as you or your heirs hold an interest. A lender’s policy protects the lender’s security interest up to the loan amount and lasts until the loan is paid off. Most lenders require a lender’s policy for approval.
Coverage and limits
Standard coverage can address issues like forged signatures in the chain of title, improperly recorded documents, undisclosed liens, mistakes in public records, certain judgment liens, or missing prior owners.
Title insurance generally does not cover zoning violations, eminent domain, environmental hazards, flood damage, or post-closing boundary disputes unless you add a specific endorsement. Known defects disclosed before closing are also excluded. Your title agent can explain which endorsements close the gaps for your property.
St. Louis closing steps
After you and the seller sign the purchase contract, the title company or closing agent starts a title search. They review recorded deeds, mortgages, liens, judgments, tax records, and more. From that search, they issue a title commitment. This document lists conditions that must be cleared or exceptions that will remain.
You will review the title commitment before closing. If there are liens, unpaid taxes, or other defects, those items are handled or listed as exceptions. You pay the title premium at closing as part of your settlement statement.
Local records to check
In the St. Louis area, searches pull from the City of St. Louis Recorder of Deeds for properties in the city and the St. Louis County Recorder of Deeds for county properties. Title agents also check county circuit courts and clerk offices for judgments or probate records, and local tax offices for unpaid taxes or assessments.
Older properties in historic city neighborhoods sometimes require extra work to confirm the chain of title. This is common and is one reason title insurance matters in St. Louis.
Who handles closings
Licensed title companies and escrow agents commonly handle St. Louis closings. They coordinate the title search, collect payoff statements, record documents, and disburse funds. Some buyers and sellers also involve attorneys, depending on the deal.
Who pays in St. Louis
Payment is custom and negotiable. In many St. Louis transactions, the seller pays for the owner’s policy and the buyer pays for the lender’s policy and loan charges. This is not universal. Confirm the cost split in your purchase contract and check the Closing Disclosure to verify the final allocation.
Costs and examples
Title premiums are one-time charges based on the purchase price for the owner’s policy and the loan amount for the lender’s policy. You may also see fees for the title search and exam, closing or escrow services, endorsements, recording, courier services, and state or local taxes. Some states regulate rates or require filed schedules. In Missouri, always ask the title company for a written estimate and current rate schedule.
As a general guide, owner’s title premiums often range from about 0.2 percent to 1.0 percent of the purchase price, depending on the state and rate table. Here are illustrative examples, not Missouri quotes:
- $200,000 purchase price at 0.5 percent: about $1,000
- $350,000 purchase price at 0.6 percent: about $2,100
Ask about any discounts for buying the owner’s and lender’s policies together. Some title companies offer reduced combined rates when both are issued at the same time.
Local risks to watch
St. Louis has a mix of historic city homes and suburban properties, so certain risks show up more often.
- Older housing stock can mean chain-of-title errors, ambiguous conveyances, or missing heirs.
- Unpaid property taxes or past tax sale issues can affect some parcels in the city and county.
- Municipal liens for code enforcement or special assessments can appear on title.
- Easements and rights-of-way for alleys and utilities may not be obvious.
- Boundary and survey discrepancies are not unusual on older platted lots.
- Floodplain exposure along rivers is a separate risk addressed by flood insurance, not title insurance.
Recommended endorsements
Endorsements add coverage for specific risks at an added cost. Ask your title agent which apply to your property and location.
- Survey or boundary endorsement to address encroachments or boundary matters when supported by a current survey.
- Municipal lien endorsement for unpaid assessments or certain city charges.
- Gap endorsement to cover the period between the last search and policy date.
- Zoning or condominium endorsements when use or condo status matters.
- Mechanic’s lien or construction endorsements for recently improved properties.
Buyer checklist
Use this checklist to stay ahead from contract to closing.
Before contract or early escrow
- Ask which title company will handle the file and if you can choose your own.
- Clarify who pays the owner’s and lender’s policies in your offer.
- Request an early estimate of title charges and closing fees.
Reviewing the title commitment
- Read the exceptions list for easements, unreleased mortgages, judgments, tax liens, and covenants.
- Confirm what must be paid off or cleared before closing.
- Ask for plain-language explanations of anything unclear and what endorsements can address specific items.
Endorsements and surveys
- Consider an updated survey if boundaries or encroachments are a concern.
- Ask for endorsement recommendations based on city vs. county location and recent improvements.
At closing
- Verify title charges and who pays what match your contract and Closing Disclosure.
- Confirm the deed and mortgage are recorded with the correct names and legal description.
- Keep your final owner’s policy and closing documents in a safe place.
If a title issue appears after closing
- Contact the issuing title insurer with your policy number to file a claim.
- Insurers typically defend covered claims or pay valid losses up to policy limits.
How The Closing Pros helps
You deserve a clean closing with no surprises. Our team guides you through title choices, typical local costs, and the contract language that sets who pays for what. We coordinate closely with the title company, help you review the title commitment at a high level, flag items to resolve, and keep your timeline on track. That mix of local experience and process discipline helps you close with confidence, whether you are buying your first St. Louis home or your next one.
Ready to talk strategy or request a closing estimate? Connect with The Closing Pros for straightforward guidance and a smooth path to the finish line.
FAQs
Do I need owner’s title insurance if my lender requires a policy?
- Yes, the lender’s policy protects the lender, while the owner’s policy protects your ownership and lasts as long as you hold an interest in the home.
Who typically pays for title insurance in St. Louis deals?
- It is common for sellers to pay the owner’s policy and buyers to pay the lender’s policy, but this is negotiable and should be confirmed in your contract.
What does a St. Louis title commitment include?
- It lists recorded items found in the search, the conditions to clear before closing, and exceptions that will remain, which you should review and discuss with the title agent.
How much will title insurance cost on a $300,000 home?
- Premiums vary by rate schedules, but using the national range of roughly 0.2 percent to 1.0 percent gives a ballpark of $600 to $3,000, plus fees and endorsements.
What endorsements are smart for older city properties?
- Survey or boundary, municipal lien, and gap endorsements are often considered, with zoning or mechanic’s lien endorsements added based on use and recent work.
Does title insurance cover floodplain risk in Missouri?
- No, title insurance does not cover flood damage; flood risk is managed with separate flood insurance and property due diligence.
