For many buyers in New Hanover, Pender, and Brunswick counties, "Title Insurance" is just another line item on the closing disclosure—a $1,200 fee you pay because the attorney told you to.

But in South Eastern North Carolina, title insurance is not just a formality. It is the only thing standing between you and a legal nightmare that could date back to the 1800s.

Unlike buying a home in a new subdivision in Charlotte, buying coastal property involves navigating a complex web of historic deeds, shifting shorelines, and ancient family rights. Here is why that one-time fee is the most important check you will write at closing.

1. The "Heirs' Property" Trap

In eastern North Carolina, we have a unique phenomenon known as "Heirs' Property."

What it is: Land that has been passed down through generations without a will. Instead of one clear owner, there might be 50 distant cousins who each own a tiny fractional interest in the land.

The Risk: You might buy a historic cottage in Southport or a rural tract in Burgaw from someone who thinks they are the sole owner. Three years later, a long-lost cousin surfaces with a valid claim to 1/16th of your property. Without title insurance, you could be forced into a legal battle or even a partition sale.

The Protection: An Owner’s Title Policy defends you against these "undisclosed heirs," paying the legal fees to clear the title or compensating you for the loss.

2. The "Freeman Park" Lesson: Public Trust vs. Private Deeds

Newcomers often assume that if a deed says you own to the water, you own to the water. The famous legal battles over Freeman Park (Carolina Beach) proved otherwise.

The Conflict: Private owners held deeds dating back decades that claimed ownership of the dry sand beach. However, North Carolina law recognizes "Public Trust Rights"—the public's right to use the beach.

The Reality: Even if your historic deed says you own the dunes, the state may claim a "prescriptive easement" because the public has used that path for 50 years.

The Insurance Role: While standard policies have exceptions for "public trust rights," a good real estate attorney will work with the title company to add specific endorsements or clarify exactly where your private rights end and the public's begin before you close.

3. The Marketable Title Act (and its Coastal Loophole)

North Carolina has a law called the Marketable Title Act, which theoretically wipes out old claims (like a timber path easement from 1890) if they haven't been re-recorded in the last 30 years.

The Loophole: This act does not extinguish rights held by the State or the public.

The Coastal Risk: That "ancient easement" for fishermen to cross your land to get to the Sound? It might still be valid, even if it’s not on the last three deeds. Title insurance research digs back further than the standard 30-year search to find these "ghost" easements before they haunt you.

4. Shifting Sands: Accretion vs. Avulsion

In Topsail or Oak Island, your property line moves.

Accretion: If sand slowly builds up over years (making your lot bigger), you typically own that new land.

Avulsion: If a hurricane changes the shoreline overnight (like Hurricane Fran did), the property lines generally do not move with the water.

The Policy Gap: Standard title insurance covers the legal description of the land at the time of closing. It generally excludes losses due to future erosion. However, it protects you if you buy a waterfront home and later find out the "new" land you thought you bought actually belongs to the state because it was created artificially (e.g., by dredging) rather than naturally.

5. The "Mechanic’s Lien" Surprise

This is common in our renovation-heavy market (like Carolina Place or Sunset Park).

The Scenario: The seller flipped the house and put in a new kitchen. They paid the general contractor, but the contractor never paid the lumber yard.

The Surprise: The lumber yard can file a lien on your new house, even after you close.

The Fix: Title insurance covers this specific risk. If a valid lien pops up from the previous owner's renovation, the insurance company pays it, not you.

The Bottom Line

In a region where land records were literally burned during the Civil War (in some counties) and where property lines are drawn in the sand, "clean title" is a relative term.

At Aspyre Realty Group, we partner with closing attorneys who specialize in coastal dirt. We don't just look for the deed; we look for the history behind it, ensuring that the only person with a claim to your new front porch is you.