Frequently asked questions
Title and closing answers,
in plain English.
Title and closing can be confusing, especially for first-time buyers. We get a lot of the same questions, so we wrote them all down here. If you don't see yours, email or call us.
Title insurance
What title insurance does and why you need it.
What is title insurance?+
Title insurance protects you against covered title defects, liens, and ownership disputes that may have existed before you bought the property. Unlike other types of insurance, it is a one-time premium paid at closing and protects you for as long as you own the home. There are no renewal premiums.
What is the difference between an Owner's policy and a Lender's policy?+
The Owner's policy protects your equity stake in the home. The Lender's policy (required by every mortgage lender) protects only the lender's interest in the property. In Michigan, the seller customarily pays for the Owner's policy and the buyer pays for the Lender's policy, though this can be negotiated.
How much does title insurance cost?+
Title insurance rates are filed with the Michigan Department of Insurance and Financial Services (DIFS). They are calculated on a sliding scale tied to the sale price (for the Owner's policy) or the loan amount (for the Lender's policy). Email orders@miallegiancetitle.com with your sale price and we will send a fee estimate, usually within one business hour.
What is a 2-year reissue rate?+
If the property was last title-insured within the previous 24 months, the seller may qualify for a significantly reduced premium, often around 30% off the standard rate. Tell us early so we can confirm eligibility and factor it into your fee estimate.
What does title insurance NOT cover?+
Title insurance does not cover issues that arise after you take ownership (new liens, post-closing fraud, divorce proceedings), title defects you knew about and accepted in writing, or items specifically listed as exceptions in the policy schedule. It also does not cover boundary line disputes if you chose not to obtain a survey.
Escrow and closing
What happens between contract and keys.
What is escrow?+
Escrow is the holding of funds and documents by a neutral third party until all conditions of the transaction are satisfied. At Allegiance, escrow funds sit in a federally regulated trust account. Earnest money deposits stay in escrow from contract execution through closing day.
How long does the closing process take?+
From accepted purchase agreement to keys in hand, the typical residential closing in Michigan runs 30 to 45 days. Cash transactions can close in 7 to 14 days when the title work is clean. Refinances typically run 30 to 60 days depending on the lender's workload and the complexity of the title.
Where do I sign?+
Most signings take place at our Macomb County office in Shelby Township (49100 Van Dyke Ave). Mobile signings can be arranged anywhere in Southeast Michigan if you cannot come to the office. Let us know at order intake so we can schedule accordingly.
How long does signing take?+
Typically 30 to 60 minutes for a standard purchase closing. First-time buyers who want to read every page thoroughly are welcome to take extra time. Complex transactions or simultaneous buy-sell closings take longer. There is no rush at the signing table.
What do I bring to closing?+
Bring a government-issued photo ID for every person signing. If you owe funds at closing, bring a cashier's check made out to Allegiance Title Agency or a confirmation that your wire was sent before you arrived. Buyers should also bring proof of homeowner's insurance with the lender named as mortgagee.
Order intake and timing
How and when to open your order.
When should I open the title order?+
Submit your order immediately after the purchase agreement is fully executed by all parties. Earlier orders give us more time to run the title search, identify any issues, and clear them before your closing date. Late orders are the most common cause of delayed closings.
How fast do you respond to a new order?+
Within one business hour of receipt during weekday hours (Monday through Friday, 9 AM to 5 PM). You will receive an order confirmation with an assigned file number and the name and direct contact information for your closer.
What do you need to start?+
Email orders@miallegiancetitle.com with the fully signed purchase agreement, all addenda, the buyer and seller agent contact information, and the lender's contact information if a loan has been chosen. That is all we need to get started.
How do I know who is working on my file?+
At order intake you receive a confirmation email with the closer assigned to your transaction and their direct phone number. You will deal with that closer from opening through post-closing. There is no call center routing system.
Wire fraud and security
Keeping your funds safe.
How do you send wire instructions?+
Through a secure encrypted portal with multi-factor authentication, never by plain email. You will receive a link to the portal with a one-time access code confirmed by phone. If you receive what appears to be wire instructions in a regular email, do not trust them.
What if I get wire instructions by email?+
Do not trust them and do not wire. Call our office at (586) 991-6219 using a number you already have saved, not a number printed on the document. Tell us what you received and we will verify whether it came from us. This call takes two minutes and could save your closing funds.
What if I already wired to the wrong account?+
Call your bank immediately to attempt a recall. Time matters: the faster you act, the higher the chance of recovery. Then call us. Then file a complaint with the FBI Internet Crime Complaint Center at ic3.gov. Do all three within the same hour if possible.
After closing
What happens once you have the keys.
When does the deed get recorded?+
Same day for cash transactions. One to two business days after closing for financed transactions, because the lender must fund the loan before we can release the deed to the county Register of Deeds for recording.
When will I receive my Owner's title insurance policy?+
Your Owner's policy is mailed to you within 30 days after the deed records. The policy will arrive as a formal document from First American Title Insurance Company. Keep it with your homeownership documents for as long as you own the property.
When is my first mortgage payment due?+
Typically 30 to 45 days after closing, depending on which day of the month you closed. Your lender will confirm the exact due date before or at closing. Do not assume it is the first day of the following month.
What about prorations on property taxes?+
Property taxes are prorated at closing following Michigan custom. The seller pays their share of the current tax cycle up through the day before closing, and the buyer takes responsibility from closing day forward. The proration is calculated from the most recent tax bill and shown as a line item on the closing statement.
Still have questions
Don't see your question? Contact us.
We respond within one business hour during weekday hours. No question is too small if it is standing between you and a confident closing.