Title insurance in Maryland, explained
Before you own a home, a title search looks back through decades of records on it: past owners, mortgages, liens, and court judgments. Here's what that search does, what title insurance covers, who pays for it, and the Baltimore issues that can hold up a closing.
By Mike Fielder, Realtor · Updated November 2026
What a title search looks for
Maryland requires a title search before a title policy can be issued. The title company reviews local records, including deeds, mortgages, wills, divorce decrees, court judgments, and tax records. The goal is to confirm the seller can actually sell, and to find anything attached to the property: liens, easements, rights of way, and encroachments.
Most of what the search finds gets fixed before closing. An old mortgage that was paid off but never released gets a release recorded. A judgment gets paid from the seller's proceeds. Title insurance is for what a search can't catch, like a forged signature somewhere in the chain of ownership or an heir nobody knew about.
Owner's policy vs. lender's policy
| Lender's policy | Owner's policy | |
|---|---|---|
| Who it protects | The lender only | You |
| How much | The loan amount, which drops as you pay it down | The purchase price, plus legal costs to defend your title |
| How long | Until the mortgage is paid off | As long as you own an interest in the home |
| Required? | Yes, if you have a mortgage | No, it's optional |
Buying both at closing usually earns a discount called simultaneous issue, and Maryland law gives you the right to buy the owner's policy at the same time as the lender's. An enhanced owner's policy costs about 20% more than the standard one and covers more risks, so ask your title company to show you the difference.
My advice: get the owner's policy. It's a one-time premium paid at closing, and without it, a title problem from before you bought can cost you the money you put into the house.
What it costs and who pays
- Title insurance premiums are regulated by the Maryland Insurance Administration. Settlement fees, like document preparation and running the closing, aren't regulated, so they vary from company to company.
- Ask two or three title companies for an itemized list of fees and whether any can be waived. Be skeptical of "everyone charges the same."
- If the seller bought with a title policy in recent years, ask about a reissue rate. Each insurer sets its own rules for it.
- Who pays isn't set by state law. It's part of your contract, so it can be negotiated.
For everything else that gets paid at closing, see buyer closing costs in Owings Mills and seller closing costs in Owings Mills. The Towson guide covers Towson closing costs and property taxes.
Two times title held up a closing
$500,000 in tax liens on the seller
A buyer of mine had an accepted offer and a closing date on the calendar. The title search turned up more than $500,000 in tax liens against the seller. Liens against a seller can attach to the property, so nothing could close until they were dealt with. A closing that should have taken weeks took eight months.
For buyers, this is why the search matters: you find out before you own the house, not after. For sellers: if you know you have liens or judgments, tell your agent and the title company up front, so the plan for paying them off at closing starts on day one.
A $34,000 water bill nobody owned
I had sellers whose City rowhome sat on a block that was converted to two-unit condos in the 1980s. The condo association had stopped operating years before, but each rowhome still had a single water meter shared by two units. Nobody was splitting the bill, the two owners disagreed about who owed what, and the balance reached about $34,000.
In Baltimore City, an unpaid water bill becomes a lien on the property. The title company wouldn't let the sale move forward until the bill was resolved.
If you own in the City, look up your water account and any condo or association documents before you list. Problems like this are far easier to solve before there's a buyer and a closing date.
Ground rent: Baltimore's own title issue
Many Baltimore City homes, and some in the surrounding counties, come with ground rent. You own the house, but someone else owns the land under it and collects a small yearly rent. Sellers have to disclose it, and the title search confirms it. You can check any address yourself on the state's SDAT Real Property Search; the property record shows whether a ground rent is registered.
Ground rent can usually be bought out, which is called redemption. If a home you like has it, ask what the yearly rent is, who holds it, and what it would cost to redeem before you write an offer. For the details, read ground rent in Baltimore, explained: how to check a property, what redemption costs, and what to ask your lender.
What title insurance doesn't cover
- Most policies exclude easements, boundary line disputes, zoning violations, and air or mineral rights.
- Problems that start after you buy, like a neighbor putting up a fence on your side of the line.
- Anything listed as an exception in your title commitment. Ask for that list and read it before closing.
Open permits and code violations are a separate check from title. On a City rowhome that's been renovated, ask whether the work was permitted and whether the permits were closed out.
Your rights when choosing a title company
- You choose the title company and the settlement agent. An agent can recommend one, but you don't have to use it, and federal rules bar kickbacks and referral fees.
- You can get settlement costs early and an itemized list of fees before you commit to a company.
- For most mortgage loans, you get your Closing Disclosure three business days before closing.
- You can ask questions and get clear answers before you sign, and you get copies of everything you sign.
Questions buyers and sellers ask
Is title insurance required in Maryland?
A lender's policy is required if you're getting a mortgage. An owner's policy is optional, but it's the only one of the two that protects you.
Who pays for title insurance in Maryland?
There's no statewide rule. Who pays is set in the purchase contract and can be negotiated.
Can I choose my own title company?
Yes. The buyer chooses the title company and settlement agent. An agent can recommend one, but you don't have to use it.
What does a title search look for?
The title company reviews local records, including deeds, mortgages, wills, divorce decrees, court judgments, and tax records, to find liens, easements, and anything else attached to the property.
Does title insurance cover zoning or permit problems?
Generally no. Most policies exclude zoning violations, and open permits are a separate check from title.
What is simultaneous issue?
Buying the owner's and lender's policies together at closing, which usually earns a discount. Maryland law gives buyers the right to buy the owner's policy at the same time as the lender's.
General information, not legal advice. For your situation, ask your title company or a Maryland real estate attorney. Policy and consumer-rights details come from the Maryland Insurance Administration's title insurance consumer guide.
Buying or selling a home in Baltimore?
I'll tell you what to check before you're under contract, so title surprises show up early instead of at the closing table. Read how buying a home works or how I sell homes, or reach out directly.
Talk with MikeCall 410-905-6678