Buying a home in Broussard is exciting, but the paperwork can feel like a maze. Title insurance is one of those items that raises questions fast: Do you really need it? What does it cover in Louisiana? And how do local issues like mineral rights and flood zones affect your purchase? You deserve clear answers before you sign.
In this guide, you will learn exactly what title insurance covers, how Louisiana’s unique laws factor into your closing, and the specific risks common in Broussard and Lafayette Parish. You will also get a simple step-by-step process and a checklist you can use with your title company or closing attorney. Let’s dive in.
What title insurance covers
Title insurance protects you from certain problems with a property’s ownership history that existed before you bought it. If an old, undiscovered issue surfaces later, a policy can cover your losses and legal defense up to the policy limit.
Owner’s vs. lender’s policies
- Owner’s policy: Protects your equity, usually up to the purchase price. It is optional but strongly recommended because a lender’s policy does not protect you.
- Lender’s policy: Protects the lender’s interest up to the loan amount and is usually required by your mortgage company. It does not cover your equity.
- Premium and timing: You pay a one-time premium at closing. The policy stays in effect as long as you have an ownership interest covered by the policy.
What it does not cover
Standard policies do not cover everything that could affect a property. Common exclusions and exceptions include:
- Boundary and encroachment issues that a current survey would show, unless you add a survey-related endorsement.
- Unrecorded rights or easements created by long, open use. In Louisiana, prescriptive rights may arise over time and may not show up in the public record.
- Government matters like zoning, building code issues, or permitting violations.
- Flooding, environmental contamination, and mineral rights conflicts. These are typically excluded or limited. Flood risk requires separate flood insurance if your lender or location requires it.
Endorsements to consider
Endorsements can add coverage to address specific risks. Availability and cost vary by insurer. Common buyer requests include:
- Survey or situs endorsements to narrow boundary exceptions when you have a current survey.
- Homestead or subdivision-related endorsements when applicable.
- Endorsements addressing prescriptive rights where long-standing use or access paths are a concern.
Louisiana rules that impact your title
Louisiana follows a civil-law system, not common law. That means some terms and processes differ from other states, and your title search must account for Louisiana-specific issues.
Community property and spousal rights
Louisiana’s marital property regimes can affect a seller’s authority to transfer real estate. A spouse’s signature may be required to convey community property or homestead interests. Your title search and closing attorney should confirm that everyone with rights is properly signing.
Successions and estate sales
If a property is being sold by an estate or heirs, the succession must be correctly administered with proper court filings. Title companies and attorneys will examine succession records to make sure the seller has authority to convey clear title.
Privileges, liens, and mortgages
Louisiana recognizes privileges similar to liens, such as a vendor’s privilege or a mechanic’s privilege. Your title work should identify and require payoff or release of any recorded mortgages, privileges, judgments, or tax liens before closing.
Mineral servitudes and oil or gas rights
In South Louisiana, mineral servitudes, leases, and reservations are common. These rights can be severed from the surface estate and recorded separately. Your title examiner should search for any recorded mineral reservations or leases that affect use or future development.
Prescriptive rights and boundaries
Long-term use can create claims under acquisitive prescription. These can include access paths or utility routes that were never recorded. Discuss any visible paths, fences, or neighbor use with your title provider and consider endorsements when available.
The role of attorneys and notaries
Louisiana closings often involve a title attorney who prepares a title opinion and conducts the closing. This practice helps address civil-law issues like servitudes, privileges, and successions that may not be familiar outside Louisiana.
Broussard and Lafayette Parish risks
Local conditions around Broussard can affect insurability and future use. Knowing these risks helps you ask the right questions.
Flood zones and drainage
Parts of Broussard and Lafayette Parish have flood exposure. Flood status is not a title insurance matter, and standard policies exclude flood damage. Lenders may require flood insurance based on mapped zones. Ask your title provider and lender about flood determinations and factor insurance costs into your budget.
Mineral and energy history
Historic oil and gas activity in Lafayette Parish means mineral servitudes, reservations, or leases may appear in your title search. These interests can limit surface use in certain situations. Make sure your title examination includes a thorough mineral records review.
Successions and chain-of-title gaps
Informal transfers within families can leave missing documents or unclear ownership. Your title commitment should flag any gaps or succession issues, and the closing team should resolve them before you sign.
Taxes, code issues, and assessments
Unpaid parish or municipal taxes, recorded code violations, or special assessments can create liens. These must be cleared at or before closing. Ask for written confirmation that all taxes and lienable charges will be paid in full.
Your step-by-step process
Here is a practical path to a smooth closing in Broussard.
1) Get under contract and choose a title provider
Your purchase agreement can name the title company or closing attorney and state who pays for the owner’s policy. In our area, payment customs vary, so confirm with your agent and put it in writing.
2) Open title and order the search
The title company or attorney will perform the title work and issue a title commitment. This document lists what is covered, what is excluded, and what must be fixed to deliver clear title.
3) Review the title commitment
Read the exceptions and the “requirements” section. Typical items to clear include mortgage payoffs, lien releases, tax confirmations, and proof of seller authority. If the seller acquired by succession, look for court documents showing proper transfer.
4) Order a current survey and inspect the property
A survey can reveal encroachments, fence lines, or easements that a standard policy excludes. If you rely on an older survey, ask your title company about a survey-related endorsement that may reduce survey exceptions.
5) Clear title issues before closing
Your closing team will work to obtain releases, pay off liens, and address exceptions. If unrecorded claims arise, you may need legal guidance or endorsements depending on availability.
6) Close and fund
At closing, you will pay the one-time premiums and fees, sign the deed and loan documents, and authorize recording.
7) Receive your policy after recording
Post-closing, the deed and mortgage are recorded, and the owner’s policy is issued. Keep your policy with your closing documents for future reference.
Buyer checklist for Lafayette Parish
Carry this list from contract to closing:
- Copy of your executed purchase agreement
- Contact info for your title company or closing attorney
- Request for a detailed fee and premium breakdown
- Current survey or an order for a new one
- Proof of homeowner’s insurance and flood insurance if required
- Questions about community property or spouse signatures if applicable
- Confirmation of searches for mortgages, privileges, tax and judgment liens
- Review of any succession documents tied to the seller’s ownership
- Requests for endorsements relevant to surveys, homestead, or prescriptive rights
- Mineral servitude and lease search results
Costs to plan for
Exact amounts vary by insurer, purchase price, and local fee schedules. Expect a closing estimate that includes:
- Owner’s title insurance premium
- Lender’s title insurance premium if you have a mortgage
- Title search and examination fees
- Attorney or closing fees
- Recording fees for the deed and any mortgage
- Payoff and lien-release costs
- Endorsement fees if you add coverage
Smart moves for Broussard buyers
- Get an owner’s policy. A lender’s policy protects the bank, not you.
- Work with a local title team. Choose a provider familiar with Lafayette Parish records, mineral practices, and succession procedures.
- Insist on a survey. It is the best way to spot boundary issues that a standard policy will not cover without endorsements.
- Verify seller authority. If the owner is married or the property came through a succession, confirm the correct signatures and court documents are in place.
- Check flood status early. Factor potential flood insurance costs into your numbers before inspection periods expire.
Work with a local guide
Title insurance can feel technical, but with the right team you can move forward with confidence. If you want a calm, well-managed path from contract to close, partner with an advisor who understands both the transaction and the way you plan to live in your new home.
If you are buying in Broussard or anywhere in Lafayette Parish, connect with Jessica Broussard for local guidance. She will help you coordinate with the title company or attorney, review your title commitment and survey, and keep your closing on track so you can focus on move-in day.
FAQs
Do I need an owner’s title policy if my lender already requires a policy?
- A lender’s policy protects only the lender’s interest; an owner’s policy protects your equity and is strongly recommended.
Who pays for the owner’s title insurance in Broussard?
- It is negotiable and varies by contract; confirm local custom with your agent and write the agreement accordingly.
Will title insurance cover flooding or mineral rights issues?
- Standard policies exclude flood damage and offer limited coverage for mineral matters; address flood risk separately and review mineral records during the title search.
What local title issues are common in Lafayette Parish?
- Flood exposure, mineral servitudes and leases, successions, prescriptive servitudes, and recorded liens or unpaid taxes are frequent concerns.
What happens if the title search finds a defect?
- The title commitment will list requirements to fix it; your closing team typically obtains releases, pays off liens, or secures documents before you close.
