Title Insurance & the Closing Process in New Hampshire: Complete Protection & Peace of Mind in 2026
Introduction
Buying a home in New Hampshire represents a significant financial commitment, and the closing process stands as the final critical milestone in your real estate transaction. With the median home price in New Hampshire reaching $535,000 as of early 2026, understanding the mechanics of title insurance, closing timelines, and document requirements has never been more important. Approximately 7 days typically separate the pending offer stage to closing in New Hampshire’s competitive market, yet many buyers remain unclear about title insurance protection, closing costs, and their attorney’s role throughout this crucial phase.
This comprehensive guide demystifies New Hampshire’s closing process, explains how title insurance protects your investment from historical claims and defects, breaks down closing costs in detail, and provides practical tips for navigating one of life’s largest financial transactions with confidence. Whether you are a first-time homebuyer or an experienced investor, understanding these critical elements will empower you to move toward closing day prepared and informed.
Understanding Title Insurance: Types, Coverage, and Legal Framework
What is Title Insurance and Why It Matters?
Title insurance protects property owners and mortgage lenders against financial losses arising from defects in a property’s title that existed prior to the date of the policy. These defects can take many forms: unknown liens filed by previous creditors, forged deeds executed decades ago, recording errors at county registries, undisclosed heirs claiming inheritance rights, or mechanic’s liens filed by contractors who were never paid. Without title insurance, you could be held personally responsible for clearing these claims, potentially incurring tens of thousands of dollars in legal fees and settlement costs even after closing on the property.
Unlike homeowners insurance or auto insurance, title insurance operates on a fundamentally different principle. Rather than protecting you against future risks, title insurance protects you against historical problems—issues that arose before you took ownership but were never discovered or resolved. The premium is paid only once, at closing, and the policy protects you and your heirs for as long as you or they own the property, with no annual renewal fees or premiums. This one-time cost represents extraordinary value given the long-term protection provided.
The Two Types of Title Insurance Policies
New Hampshire recognizes two distinct types of title insurance policies, each serving a different stakeholder in the transaction:
Lender’s Title Insurance (or Mortgagee’s Policy): This policy is required by virtually all mortgage lenders in New Hampshire and protects the lender’s investment only. The coverage amount equals the outstanding mortgage balance and decreases over time as you pay down the loan. If a title defect surfaces and threatens the lender’s security interest, the title insurance company must defend the lender’s position and pay any losses up to the policy limit. For a $535,000 median-priced home with a $428,000 mortgage (approximately 80% loan-to-value), lender’s title insurance typically costs $856 to $1,070 (at $2–$2.50 per thousand dollars of coverage). This cost is non-negotiable and is required before any lender will fund the loan.
Owner’s Title Insurance (or Owner’s Policy): This optional but highly recommended policy protects your equity investment in the property. Coverage extends up to the purchase price plus the reasonable costs of defending your title against claims. For a $535,000 home purchase, an owner’s policy typically costs $1,070 to $1,340. Critically, owner’s insurance provides protection that does not decrease over time. If you own the property for 20 years and a title defect surfaces, your policy still covers you at the original face value, protecting your accumulated equity. Many real estate attorneys and financial advisors strongly recommend purchasing owner’s title insurance as a complement to the lender’s policy, essentially ensuring complete protection of your investment.
New Hampshire Statutory Framework
Title insurance in New Hampshire is regulated under RSA 416-A (Title Insurance), part of New Hampshire’s comprehensive insurance code. Under this statute, only licensed title insurance companies and their appointed agents (including certain qualified attorneys) may issue policies. All title insurance companies operating in New Hampshire must maintain detailed records of title examinations and policy issuances for a minimum of 20 years, ensuring accountability and providing documentation if claims arise. The statute establishes minimum standards for title searches, examination procedures, and claim handling, protecting consumers by ensuring that all title insurers meet consistent professional standards. New Hampshire also permits both standard title insurance policies and enhanced policies, which include additional coverage for unrecorded liens, building permit violations, and post-policy forgery.
The Title Search Process: Uncovering Hidden Title Defects
How Title Searches Work in New Hampshire
Before any title insurance policy is issued, a licensed title company or qualified attorney must conduct a thorough examination of the property’s complete chain of title. This process typically takes 3-5 business days from the initial order, though complex properties or transactions with financing contingencies may require longer. The title search involves examining multiple categories of public records maintained at the county Registry of Deeds, including the original deed transferring the property to the first recorded owner, all subsequent deeds, mortgages and mortgage discharges, liens and judgments, and recorded easements, covenants, and encumbrances. Most New Hampshire counties charge $12 for the first recorded page and $4 for each additional page when documents are recorded.
The title examiner traces this chain backward in time, typically looking at least 50-60 years of history (or to the root of title, often much further back). For properties with Victorian-era construction (common throughout New Hampshire), examiners may review deeds dating to the 1800s, searching county registers that are still maintained in paper form in some locations. The goal is to verify that each owner received the property through a valid conveyance, that all liens and mortgages were properly recorded and subsequently discharged or are still valid obligations against the property, and that no defects or gaps exist in the chain of ownership.
What Title Companies Search For
Professional title searches examine numerous categories of potential defects. Unpaid property taxes represent a critical area of examination, as a municipality can foreclose on a property for delinquent taxes, wiping out even a legitimate owner’s interest. Title searchers verify with the town tax assessor that all current and prior taxes have been paid. Unpaid contractor or mechanic’s liens are another major concern. Under New Hampshire law, construction contractors have 120 days after completing work to file a lien, and such liens can be perfected even if the homeowner paid the general contractor (if that contractor failed to pay subcontractors). A title search near the closing date helps ensure all construction work was completed years earlier, with any potential liens long since expired or discharged.
Title defects also include boundary disputes or encroachment issues, where survey records or neighbor complaints reveal that structures may sit partially on adjacent property. Easements and covenants represent another critical category. An easement grants someone else (a utility company, neighbor, or municipality) the legal right to use a portion of your land for a specific purpose. Some easements are obvious—a utility company easement for power lines—while others are obscure, such as an easement allowing a neighbor to cross your property to access their own. Similarly, covenants restrict how you can use the property. Some are reasonable (requirements to maintain property appearance in a planned community), while others may be outdated (historical restrictions based on race or religion, though such covenants are now unenforceable as a matter of public policy).
Undisclosed heirs represent another significant risk. If a property owner died without a valid will, or if a will was later challenged or found to be invalid, multiple heirs might claim ownership. A historical heir search examines whether previous owners died without leaving clear evidence of valid probate proceedings. Historical recording errors also occur. Deeds may have been misfiled, indexed under incorrect names, or recorded with incomplete legal descriptions. Modern title companies use specialized index searches and sometimes original document reviews to uncover these errors.
Title Search Costs in New Hampshire
Title search costs vary based on property complexity and county location, but typical searches in New Hampshire cost $200 to $400 as a standalone service. However, when purchasing title insurance, the search cost is typically bundled into the overall title insurance premium. For a median $535,000 home purchase in New Hampshire, expect to allocate $200 to $400 specifically for the title search and examination component, with total title insurance costs (search plus policy) running $1,070 to $2,410 depending on coverage selected (owner’s policy, lender’s policy, or both).
Common Title Defects and Real-World New Hampshire Examples
Historical Deed Issues and Old Properties
New Hampshire’s abundance of historic properties, many dating to the 1700s and 1800s, creates unique title challenges. Victorian homes built in the 1890s may have deeds executed when legal requirements were different from today’s standards. A deed may lack proper notarization (not legally required in early New Hampshire), contain vague property descriptions (references to "one acre of land near the north road" without precise surveyed boundaries), or were signed by individuals who lacked legal authority to convey the property. One common scenario involves a property transferred by a power of attorney that was later found to be invalid or fraudulently executed. The original buyer thought they owned the property clearly, only to have the previous owner’s heirs appear decades later with claims that the power of attorney was forged or improperly authorized, rendering the deed void.
In such situations, title insurance becomes invaluable. If a title company issues a policy and later discovers that a critical deed was fraudulently executed, the title insurance company must defend the current owner’s title in court (paying for attorneys) and compensate the owner for any losses. Without this protection, a homeowner might face the horrifying prospect of a quiet title action in Superior Court, years of litigation, and potentially losing the home.
Boundary Disputes and Survey Issues
Boundary disputes arise frequently in New Hampshire, particularly in rural areas where properties have changed hands multiple times over centuries and original survey records are lost or conflicting. A neighbor may claim that a fence sits on his property, or a driveway encroaches on their land. Some disputes are minor inconveniences; others threaten the marketability of the property. Title insurance covers the costs of defending against boundary disputes that existed prior to closing, including professional surveyor fees and attorney costs.
A real-world case illustrates the value of title insurance: A Concord homebuyer purchased a Victorian property built in the 1890s, including a driveway that had been in continuous use for over a century. Shortly after closing, the neighbor claimed that a 10-foot strip of the driveway was actually on her property, citing an old deed from the 1920s. The neighbor threatened legal action. The buyer’s title insurance policy responded by hiring a professional surveyor (costing $2,500) and a real estate attorney to investigate the claim. The surveyor discovered that the neighbor’s deed reference had been misfiled at the county registry during the 1930s, and historical property records confirmed the driveway had always been part of the buyer’s property. The title company paid the surveyor and attorney fees, and the neighbor’s claim was resolved. Without title insurance, the buyer would have absorbed these costs personally and faced the stress of a potential lawsuit.
Mechanic’s Liens and Contractor Issues
Mechanic’s liens represent a persistent title risk, particularly when purchasing a property where recent renovations or construction occurred. Under New Hampshire law (RSA 447:3-a), a contractor or supplier who provides labor or materials for improvements to a property and is not paid may file a mechanic’s lien against the property. Critically, such a lien can be filed even if the property owner paid the general contractor, provided the general contractor failed to pay the subcontractor. Mechanic’s liens have a 120-day filing window from the date work is completed.
If a home was recently renovated but the title search is conducted before all lien periods have expired, the title company cannot issue a clear policy. The seller must provide lien waivers from all contractors and subcontractors, or escrow funds must be held until the 120-day period expires. A concrete example: A property in Pelham undergoes a $65,000 kitchen and bathroom renovation by a general contractor. The general contractor is paid in full but fails to pay the electrical subcontractor. The subcontractor files a $12,000 mechanic’s lien 90 days after completing the work. If the property is listed for sale during this period, the lien clouds the title, preventing closing until it is resolved. Title insurance protects against such scenarios by covering the costs of resolving the lien and providing proof it has been discharged.
Hidden Liens and Unpaid Obligations
Previous owners may have accumulated unpaid debts that creditors have converted to judgment liens, recorded against the property. These might include unpaid credit card debt, medical bills, child support obligations, or business debts. A judgment lien becomes a charge against the property and can prevent transfer of clear title. Title searches must identify all recorded judgments and liens. In some cases, the seller pays off the lien from proceeds at closing. In others, a portion of the sale proceeds may be held in escrow to resolve the claim. Title insurance protects the new owner if a hidden lien surfaces after closing—perhaps filed in a neighboring county or misfiled under a slightly different name. The insurance company is then obligated to pay off the lien or defend the owner’s title against the claim.
The New Hampshire Closing Process: Step-by-Step Timeline and Requirements
The Critical Role of Real Estate Attorneys
New Hampshire requires a licensed real estate attorney to conduct real estate closings. While most transactions complete without issues, having a qualified attorney representing your interests is non-negotiable in New Hampshire. Real estate attorneys handle far more than simply witnessing signatures. Your attorney reviews the purchase agreement to ensure all terms are clearly stated and your interests protected, conducts or orders the title search and reviews the title commitment for any issues requiring resolution, prepares or reviews all closing documents including the deed, promissory note, and mortgage, explains documents and ensures you understand all obligations before signing, and serves as a neutral closing agent or represents your specific interests depending on your arrangement.
Typical real estate attorney fees in New Hampshire range from $750 to $1,250 for straightforward residential closings, with some attorneys charging hourly rates (approximately $309 per hour as of 2025 data). For more complex transactions—those involving commercial property, trust ownership, or title defect resolutions—attorney fees may reach $1,500 to $3,000. While attorney fees are an additional cost, they represent a valuable investment. An experienced New Hampshire real estate attorney can identify and resolve title issues that might otherwise lead to costly disputes after closing, negotiate favorable terms during the contract review process, and ensure that all documents are properly executed and recorded, protecting your ownership rights.
Pre-Closing Preparation Phase (30-45 Days Before Closing)
Once an offer is accepted, the pre-closing phase begins. Your attorney is typically engaged immediately. They will request a title search order from a local title company (or conduct the search themselves if they maintain a title plant). Most New Hampshire title searches take 3-5 business days to complete. Simultaneously, if you are obtaining mortgage financing, your lender will order an appraisal, conduct underwriting review of your financial documents, and verify employment and credit history. For mortgage financing, the entire pre-closing phase typically requires 30 to 45 days, with 7 days being a common interval from contract signature to pending status in New Hampshire’s market.
During this phase, your attorney will send a due diligence checklist to the seller’s attorney, requesting copies of property tax bills, homeowners insurance declarations, HOA documents (if applicable), seller’s affidavit confirming no encroachments or claims of which they are aware, and any building permits or contractor information for recent improvements. This information helps identify any potential title issues that should be resolved before closing.
The Title Commitment and Condition Resolution (10-20 Days Before Closing)
Once the title search is complete, the title company issues a title commitment, which is not yet the final insurance policy but rather a preliminary report detailing what the title company is willing to insure. The commitment lists all liens, easements, covenants, and other encumbrances found in the public record. More importantly, it lists “exceptions”—items that the insurance company will NOT cover, such as defects for which a waiver is required or items that must be satisfied before the policy issues.
Your attorney reviews the title commitment carefully. If the property has a municipal lien for unpaid property taxes, that lien must be paid from the proceeds at closing. If a recent contractor lien has been filed, the seller may need to provide a lien waiver or escrow funds to satisfy it. If an easement exists (such as a utility company right-of-way), this is typically accepted as a normal exception. If unexpected issues appear—such as an unresolved boundary dispute or an unknown heir’s potential claim—your attorney works with the seller’s attorney to find solutions or may recommend that the transaction be delayed or terminated if the issues cannot be resolved.
This phase typically takes 10-20 days, with active negotiation regarding any title issues. Most straightforward residential transactions have only routine exceptions on the title commitment and move forward smoothly. However, older properties or those with complex ownership histories may require additional time for the title company to research and resolve issues.
Final Preparations (3-7 Days Before Closing)
Approximately one week before the scheduled closing date, your attorney and the seller’s attorney coordinate the final details. The exact closing date, time, and location are confirmed. Your attorney prepares a closing document package, which includes the deed, promissory note (your promise to repay the mortgage), mortgage or deed of trust (which provides the lender security in the property), Closing Disclosure (the final settlement statement showing all closing costs and credits), and various affidavits and disclosures.
You will receive a Closing Disclosure at least three business days before closing. Federal law (TRID—the TILA-RESPA Integrated Disclosure Rule) requires lenders to provide this document with at least 72 hours for review before signing. The Closing Disclosure shows your loan amount, interest rate, monthly payment, all closing costs broken down by category, and a comparison to the Loan Estimate you received when the loan was conditionally approved. This is your final opportunity to review numbers, identify any unexpected charges, and ask questions before committing.
The Closing Meeting: Day of Closing
On closing day, you will attend a closing meeting at an attorney’s office or title company conference room. Present will typically be: you (the buyer) and your spouse (if applicable), the seller (and their spouse), your real estate attorney, the seller’s attorney (who may serve as the neutral closing agent), potentially a representative from your mortgage lender (for more complex transactions), and sometimes the real estate agents involved in the sale.
The closing agent will walk through each document, explaining key provisions and confirming that all details are correct. You will be asked to sign numerous documents. The deed is reviewed—carefully check that the legal description matches the property you are buying and that the seller’s name is spelled correctly (and matches the name on the title commitment). The promissory note confirms your obligation to repay the loan, including the principal amount, interest rate, and monthly payment schedule. The mortgage or deed of trust gives the lender a security interest in the property; if you default, the lender can foreclose. Various affidavits may be required, such as an affidavit confirming that you are not acquiring the property for investment purposes under the Foreign Investment in Real Property Tax Act (FIRPTA), or a homeowners’ association certification stating that no special assessments are pending.
The Closing Disclosure is reviewed line-by-line, confirming all financial figures. Your down payment amount, the loan amount, all closing costs, taxes, and insurance are verified. At this point, you will arrange payment of your remaining funds—typically via certified check or wire transfer. For security, many closing agents now require verbal verification of wire transfer instructions before funds are transferred, protecting against wire fraud.
Once all documents are signed and funds are verified (or physically exchanged), the closing meeting concludes. Your attorney or the title company closing agent will immediately record the deed at the county Registry of Deeds, officially transferring ownership. The mortgage is also recorded, perfecting the lender’s security interest. Recording typically occurs the same day or the next business day, depending on county procedures. You are then issued the keys, and you take possession of the property.
Post-Closing Phase (Days After Closing)
After closing, the title company issues the final title insurance policies (both the lender’s and owner’s policies, if purchased). These policies are delivered to you and your lender within 30 days of closing. Your attorney will provide a closing statement summarizing all transactions and the deed recording information. You should receive a copy of the recorded deed, recorded mortgage, and insurance policy documents within a few weeks. File these documents in a safe location. You will need the deed for future refinancing, selling, or estate planning purposes. The title insurance policy remains in effect for as long as you own the property, protecting you against historical title defects.
Breaking Down Closing Costs in New Hampshire: What Buyers Pay
Title Insurance Costs—Detailed Breakdown
For a median New Hampshire home priced at $535,000 with standard financing (80% loan-to-value, equaling a $428,000 mortgage), title insurance costs are calculated as follows:
- Lender’s Title Insurance: $428,000 mortgage × $2.00 to $2.50 per $1,000 = $856 to $1,070. This is mandatory.
- Owner’s Title Insurance (recommended): $535,000 purchase price × $2.00 to $2.50 per $1,000 = $1,070 to $1,340. This is optional but strongly recommended.
- Title Search and Examination: $250 to $400 (often bundled into the above costs)
- Title Commitment Review: Typically included in the title company’s fee
Total title insurance for both policies on a $535,000 purchase with a $428,000 mortgage: approximately $1,926 to $2,410.
This represents the most significant title-related expense in closing costs. In New Hampshire, there is no state transfer tax, which makes closing costs lower than in many neighboring states (New York, Massachusetts, and Vermont all impose transfer taxes of 1-2%, which would add $5,350 to $10,700 to closing costs on a $535,000 purchase). New Hampshire homebuyers benefit significantly from the absence of transfer taxes, though this is offset by higher property taxes compared to some states.
Attorney Fees and Other Legal Costs
Real estate attorneys in New Hampshire typically charge flat fees ranging from $750 to $1,250 for straightforward residential closings. For a median-priced home, expect to budget $900 to $1,200. This fee typically covers contract review, title review, closing coordination, and attendance at the closing meeting. More complex transactions (involving trusts, multi-property exchanges, or significant title issues) may incur additional fees of $200 to $500.
Lender-Required Closing Costs
Your mortgage lender will require several closing costs beyond title insurance and attorney fees:
- Loan Origination Fee: Typically 0.5-1.0% of the loan amount ($2,140 to $4,280 on a $428,000 mortgage)
- Appraisal Fee: $400 to $600 (required before lender will fund)
- Credit Report Fee: $25 to $75
- Title Insurance: $1,926 to $2,410 (discussed above)
- Lender Attorney Review Fee: $150 to $300 (some lenders require)
- Recording Fees: $150 to $300 (for recording deed and mortgage)
Property-Related Closing Costs
- Municipal Recording Fees: Varies by county, typically $50 to $200
- Property Tax Proration: Buyer typically pays property taxes from closing date through December 31 of that year. On a $535,000 home in a town with a 2% property tax rate (typical for New Hampshire), annual taxes would be $10,700. If closing on June 15, the buyer would owe approximately $5,350 in prorated taxes at closing.
- Insurance Proration: Homeowners insurance is typically prepaid annually. If the seller has prepaid through December, the buyer may owe a proration at closing.
- HOA or Condo Fees (if applicable): Any prepaid fees are prorated
Estimated Total Closing Costs for a Buyer**
For a $535,000 home with a $428,000 mortgage, closing on June 15, a buyer should expect approximately $8,500 to $11,200 in total closing costs:
- Title insurance (both policies): $1,926–$2,410
- Attorney fees: $900–$1,200
- Lender origination fee: $2,140–$4,280
- Appraisal: $400–$600
- Recording and miscellaneous: $200–$500
- Property tax proration: $5,350
- Other (insurance, HOA, etc.): $400–$600
This total represents 1.6% to 2.1% of the purchase price—below the national average of 2-5%, largely due to New Hampshire’s lack of transfer taxes.
Owner’s vs. Lender’s Title Insurance: Critical Differences
Many homebuyers mistakenly believe that the lender’s title policy protects them. It does not. The lender’s policy protects only the lender’s financial interest in the property—the outstanding mortgage balance. As you pay down the mortgage, the coverage amount decreases dollar-for-dollar. Once the mortgage is fully repaid, the lender’s policy provides no protection whatsoever.
The owner’s policy protects your equity and your ownership interest. It remains in full force as long as you own the property, with no decrease in coverage. Consider a hypothetical scenario: You purchase a $535,000 home with a $428,000 mortgage. You make monthly payments for 15 years, reducing your mortgage balance to $250,000. At this point, you have $285,000 in equity ($535,000 minus the remaining $250,000 mortgage). If a title defect surfaces—perhaps a distant heir claiming ownership based on an invalid deed from 1950—the lender’s policy would cover only up to the remaining $250,000 mortgage balance. But your equity of $285,000 is unprotected. Without an owner’s policy, you would need to defend your title at personal expense, potentially costing $10,000 to $50,000 in legal fees and court costs. With an owner’s policy purchased at closing for $1,070 to $1,340, you are protected against this scenario for life.
Given that owner’s title insurance costs only marginally more than lender’s insurance ($1,070-$1,340 versus $856-$1,070), the cost-benefit analysis overwhelmingly favors purchasing owner’s coverage. Most experienced real estate attorneys and financial advisors strongly recommend that buyers always purchase owner’s title insurance in conjunction with the required lender’s policy.
Title Insurance Reissue Rates: Significant Savings for Recent Purchases
An often-overlooked opportunity for savings involves reissue rates. If you are refinancing a property you purchased within the last few years, or if you are buying a property and the seller recently refinanced, you may qualify for a reissue rate on title insurance. In New Hampshire, a reissue policy provides approximately 40% premium reduction compared to a standard title policy, because the title company has already conducted a comprehensive search and examination within the past few years.
For example, if you purchased your current home three years ago for $400,000 and are now refinancing at a higher value of $450,000, you could obtain reissue rates on the lender’s policy, saving approximately 40% on the premium (approximately $360 to $450 in savings). Sellers who refinanced their property recently should inform their buyer’s title company of the prior policy, which allows the buyer to benefit from reissue rates. This is an easy source of savings that many parties overlook.
Practical Tips for a Smooth Closing Experience
Engage an Attorney Early
Select a qualified New Hampshire real estate attorney immediately after your offer is accepted, rather than waiting until days before closing. An early-engaged attorney can identify potential issues during the contract review phase, order the title search without delay, and address any title defects well in advance of closing. This approach prevents last-minute surprises and rushed resolutions.
Understand the Title Commitment Thoroughly
When your attorney receives the title commitment, schedule a call to discuss it in detail. Ask specifically about any exceptions or conditions listed. Understand what each exception means and whether it represents a problem that needs resolution. Some exceptions are routine and benign (standard utility easements); others may require attention (unpaid municipal liens or contractor liens).
Avoid Major Financial Changes Pre-Closing
Lenders typically conduct a final verification of employment and a soft credit check within 3 to 5 days of closing. Avoid making large purchases, opening new credit accounts, or making major financial changes during the final weeks before closing. Large purchases or new debt can trigger lender concerns and potentially jeopardize loan approval. Similarly, changing jobs or employment status close to closing may raise red flags.
Review the Closing Disclosure Carefully
You are legally entitled to review the Closing Disclosure at least three business days before signing. Compare it line-by-line to your Loan Estimate. Identify any charges that seem inconsistent with what was initially quoted. If discrepancies exist, contact your lender immediately to request corrections or clarification. Do not proceed to closing with unresolved questions about charges or terms.
Perform a Final Walkthrough
Schedule a final walkthrough of the property within 24 hours of closing. Verify that the property is in the agreed-upon condition, that any negotiated repairs have been completed, that all agreed-upon items (appliances, fixtures) are still present, and that no new damage has occurred. This final walkthrough allows you to identify and address any last-minute issues before funds are transferred and ownership transfers.
Protect Your Wire Transfer Instructions
Wire fraud targeting real estate closings has become increasingly common. Never wire closing funds based solely on email instructions. Always verify wire instructions verbally with your attorney or closing agent by phone, using a phone number you know to be legitimate. Confirm that the account holder name matches the title company or attorney’s actual business name. If you have any doubt, contact the title company or attorney using a phone number from their official website.
Bring Proper Documentation to Closing
Bring a government-issued photo ID and a second form of identification. Have your checkbook available if you are making any down payment adjustment via check. Confirm the acceptable forms of payment with your attorney in advance. Most closings now require wire transfer or certified check to prevent fraud, so confirm this well ahead of time to ensure you have funds properly arranged.
Advanced Title Issues: Quiet Title Actions and Boundary Disputes
When Title Defects Cannot Be Easily Resolved
In rare situations, a title defect is so serious or legally ambiguous that it cannot be resolved outside the court system. A quiet title action—a specific legal proceeding under New Hampshire law—may be necessary. This involves filing a lawsuit in the appropriate New Hampshire Superior Court, asking a judge to determine the rightful owner and to resolve the conflicting claims. Quiet title actions are typically filed in situations involving: conflicting historical deeds with unclear priority, unknown heirs claiming ownership rights, boundary disputes that cannot be resolved through survey and negotiation, or concerns about the validity of a critical historical deed.
Quiet title actions typically take 3 to 6 months to complete and cost $2,000 to $8,000 in attorney fees and court costs. Title insurance typically covers the costs of such litigation if the defect existed prior to the policy date. In some cases, the title company will agree to issue a policy with a specific exception for the disputed issue, allowing the sale to close while the dispute is litigated post-closing. In other cases, the title company will insist that the defect be resolved before issuing the policy, potentially delaying closing.
Boundary Disputes and Survey Requirements
Boundary disputes are surprisingly common in New Hampshire, particularly in rural areas where property lines have not been formally surveyed in decades or centuries. A neighbor may claim that a fence, driveway, or even a portion of the home itself sits on their property. Title insurance covers the costs of defending a boundary dispute that existed prior to closing, including surveyor fees and attorney costs. However, correcting an actual boundary encroachment—physically moving a fence or driveway—is not covered by title insurance.
If a potential boundary issue is identified during the title search, your attorney should strongly recommend obtaining a professional survey. A boundary survey, performed by a licensed surveyor, typically costs $1,000 to $2,500 depending on property size and complexity. The survey will confirm whether a boundary dispute actually exists. If the survey confirms an encroachment by the seller onto your property (or vice versa), the parties can negotiate a boundary agreement, easement, or deed correction before closing. If the survey confirms that the property lines are as expected, the potential dispute is eliminated and closing can proceed with confidence.
Digital and Remote Closings in New Hampshire
Remote Online Notarization (RON) and E-Closings
New Hampshire has authorized Remote Online Notarization (RON), allowing documents to be electronically notarized via secure video conference. This technology enables out-of-state buyers to participate in closings without traveling to New Hampshire and allows participants to sign documents from multiple locations simultaneously. Many title companies and law firms now offer fully electronic closings, where all documents are signed electronically, transmitted electronically, and recorded electronically at the county Registry of Deeds.
The benefits of remote closings include convenience (especially for out-of-state parties), faster document signing and recording (eliminating delays in printing, signing, and scanning physical documents), and reduced paper consumption. However, not all lenders accept fully remote closings, particularly for complex transactions. Some mortgage lenders require the promissory note and mortgage to be signed in person (“wet signature”), viewing this as an additional layer of verification that the borrower genuinely understands and intends to be bound by the loan documents.
When considering a remote closing, confirm with all parties (your lender, title company, and attorney) that they support this approach. Verify that the technology platform used meets identity verification standards and security requirements. Ensure that your state of residence allows notarization of documents outside the state (most do, but it is worth confirming). Remote closings have become increasingly common since 2020 and continue to grow in acceptance, particularly for refinancing transactions and for out-of-state purchases.
Title Insurance Claims and Coverage: Real Scenarios
A Case Study: Undisclosed Home Equity Line of Credit
A Pelham homeowner sold his property without disclosing a small home equity line of credit (HELOC) that remained outstanding. The seller used most of the sale proceeds for personal use and failed to pay off the HELOC. The title company did not discover the lien during the title search because the homeowner had not drawn on the line recently, and the lien had been recorded years earlier at a different courthouse location than typically searched.
After closing, the HELOC lender discovered the lien on the property and contacted the new buyer, demanding payment of the $15,000 outstanding balance as a condition of transferring the property clear of the lien. Without title insurance, the buyer would have been responsible for this debt. However, because the buyer had purchased an owner’s title insurance policy, the policy kicked in. The title company hired an attorney to investigate (discovering the undisclosed lien and seller fraud), paid the $15,000 HELOC balance, and then pursued the seller for reimbursement. The buyer faced no financial liability and retained clear ownership. The cost of the owner’s policy ($1,200 at closing) proved invaluable.
A Case Study: Boundary Encroachment Resolved Through Title Insurance
A Concord homebuyer purchased a 1890s Victorian property with a historic driveway that had been in continuous use for over a century. Two months after closing, the neighbor claimed that a 10-foot strip of the driveway encroached onto her property, citing an old 1920s deed. The neighbor threatened legal action and demanded removal of the driveway.
The buyer’s title insurance policy responded by engaging a professional surveyor (fee: $2,500) and a real estate attorney experienced in boundary disputes (fee: $3,000 initial consultation and investigation). The surveyor’s research discovered that the neighbor’s critical deed reference had been misfiled at the county registry during the 1930s and had never been properly indexed. Historical property records, including a 1950s survey the neighbor was unaware of, confirmed that the driveway had always been part of the buyer’s property. The title company paid all attorney and surveyor fees. The neighbor, once confronted with the surveyor’s evidence and faced with the prospect of defending a weak claim, withdrew her claim. The buyer retained the driveway and incurred no personal liability. The owner’s policy premium of $1,250 returned value more than 100-fold.
Prorations and Adjustments at Closing
Property Taxes and Municipal Assessments
Property taxes in New Hampshire are paid on a calendar-year basis (January 1 through December 31). When a property transfers mid-year, property taxes must be prorated between the buyer and seller. The buyer is responsible for taxes from the closing date forward; the seller is responsible for taxes from January 1 through the day before closing. This adjustment is calculated at closing.
For a property valued at $535,000 in a town with a 2% property tax rate (typical for New Hampshire residential property), annual taxes equal $10,700. If closing occurs on June 15, the calculation would be: 166 days (June 15 through December 31) × ($10,700 / 365) = approximately $4,870 owed by the buyer at closing. Conversely, if the seller has already paid the full year’s taxes, they receive a credit from the buyer at closing for their remaining obligation.
Homeowners Insurance Proration
Homeowners insurance is typically paid annually in advance. When a property transfers, the homeowners insurance agent must be notified, and a new policy must be secured by the buyer. In many cases, the seller’s existing policy is canceled, and the seller receives a refund for the unused portion of the year. This refund is credited to the buyer as part of the closing adjustment. Alternatively, if the seller’s policy is transferred to the buyer, the buyer reimburses the seller for the remaining months of coverage at closing.
HOA Fees and Condominium Assessments
If the property is part of a homeowners association or is a condominium, monthly or annual HOA fees are similarly prorated. The seller is responsible for fees through the closing date; the buyer is responsible for fees beginning the day after closing. If the seller has prepaid fees, the buyer reimburses the seller proportionally at closing.
Utility and Fuel Adjustments
In some cases, particularly for properties with heating oil, septic tanks, or other utilities, adjustments may be required at closing. For example, if the seller has a full heating oil tank at closing and the buyer purchases the fuel, the parties negotiate a price for the remaining fuel. These adjustments are negotiated case-by-case and documented in the closing statement.
Conclusion: Protecting Your Largest Investment Through Title Insurance and Informed Closing Practices
Purchasing a home in New Hampshire represents a significant financial commitment, with the median home price reaching $535,000 as of early 2026. Title insurance and a thorough closing process are critical safeguards protecting this investment against historical claims, regulatory defects, and unforeseen complications. Understanding how title searches uncover potential issues, why owner’s title policies complement required lender’s policies, and what to expect at closing empowers you to navigate the transaction confidently and avoid costly surprises.
The time to engage a qualified real estate attorney is immediately after your offer is accepted, not days before closing. A knowledgeable attorney identifies and resolves title issues during the pre-closing phase, saving time and reducing stress. The modest cost of owner’s title insurance ($1,070 to $1,340 on a median-priced home) represents exceptional value, providing lifetime protection of your equity against historical title defects.
New Hampshire’s regulatory framework, governed by RSA 416-A and related statutes, ensures that title insurance companies and closing attorneys meet rigorous professional standards. The 3-5 day title search process and mandatory attorney involvement in closings provide layers of protection that streamline transactions and minimize risk. By understanding prorations, closing costs, and potential title issues before closing day, you position yourself to move forward with confidence in one of life’s most important purchases.
Bean Group, brokered by eXp Realty, works with experienced title companies and New Hampshire real estate attorneys to ensure your transaction proceeds smoothly from contract through closing. Our team provides guidance on title insurance options, closing timelines, and closing costs, helping you understand every aspect of the process. Contact Bean Group today to discuss your New Hampshire real estate transaction, and let our expertise and connections ensure that your closing experience is efficient, transparent, and secure. Your peace of mind is our priority.