Title Insurance and Survey for an Apartment Purchase
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Title insurance protects the deal company and its lender against certain problems with ownership of the property, and a survey shows the boundaries, buildings and easements on the land. In an apartment purchase you usually order a title commitment early, review its exceptions and the survey during due diligence, and buy the policy at closing. Lenders almost always require both, so plan for them in your timeline and budget.
Rules and practices are as of October 2026 and vary by state.
What is a title commitment?
A document from a title company that says it is willing to issue a policy on stated terms. It names the owner, describes the land, lists existing mortgages and liens that must be cleared, and lists exceptions, which are matters the policy will not cover. Read it with your attorney as soon as it arrives, and ask for copies of the documents it cites.
What exceptions matter?
- Unpaid taxes, liens or judgments, which the seller should clear at closing.
- Easements that may limit where you can build or renovate.
- Recorded agreements, such as shared access or restrictions.
- Encroachments, where a building, fence or parking sits over a boundary.
- Gaps in the ownership history.
Some can be removed or insured over; others become part of what you buy. Decide during the due diligence period, not at the closing table.
What does a survey add?
A surveyor measures the property and shows buildings, parking, access, utilities and easements. Lenders may require a specific type and sign-off. A survey can reveal that the parking count is lower than advertised or that a driveway crosses a neighbor's land. Compare it with your site visit notes.
Who pays and when?
Practices differ by state: the buyer pays in some places and the seller in others, and the lender's policy and the owner's policy are separate. Your contract should say who pays what. Include the cost in sources and uses and see closing day funds flow for how it is paid.
What are the risks?
Title insurance does not cover everything. It covers specified matters, subject to exclusions, up to the policy amount, and it does not protect against a bad purchase price or a weak business plan. Investors can lose money even with a clean policy. Describe it accurately in your materials.
How does it fit the timeline?
Order the commitment right after the contract is signed, since fixing issues takes time. The timeline from LOI to first wire shows where it sits. The deal LLC should take title; see the deal LLC.
How DoorRaise fits in
DoorRaise does not provide title insurance. It forms the deal LLC that takes title, prepares the offering documents and runs escrow at Enterprise Bank & Trust with wire-only funding under Reg D. It is for apartment buildings with 5 or more units. Fees are $1,500 to set up (due when you submit the deal, non-refundable), then $5,000 a year from closing (only if the deal closes). See LLC formation.
FAQ
Is title insurance required?
Lenders typically require a lender's policy. An owner's policy protects the deal company.
How long does a title search take?
It varies by county and complexity. Order early.
Can I get a refund if title is bad?
Your contract should say what happens. Review it with a real estate attorney.
Do I need a new survey if the seller has one?
Lenders often want a recent one in their format. Ask your lender.
Sources
This article is general information, not legal advice. Talk to a securities attorney about your deal and about what you must disclose. DoorRaise is not a law firm, broker-dealer, investment adviser or funding portal.