FREQUENTLY ASKED QUESTIONS
Title Insurance? Never heard of it.
You're not alone! Many people have never even heard of Title insurance until pretty late into their first home buying journey.
TITLE is the legal evidence or right a person has to the ownership and possession of land or property. Determining who legally owns a piece of land isn't always as easy to determine as one might think! TITLE INSURANCE is a one-time purchase that protects the rights of a property owner.
But is it actually important?
This phase of the process is not only important, it is actually MANDATORY in many states and to work with most lenders. Your home/property purchase is probably one of the largest investments you'll make in your life... You insure everything else that’s valuable to you (your life, car, health, expensive items like art and jewelry), so why would you not insure your property investments?
It can save you time and money in the long-run!
What should I expect at closing?
Congrats! You found your perfect home, the seller agreed to your offer, it’s time to close (or "settle"). To ensure everything goes smoothly, you’ll want to work with an experienced closer who can guide you through the process- that's where we come in! Once the seller accepts your offer, our work behind-the-scenes begins. If your new property is located in either PA or NJ, you should expect to have your settlement in ~30 to 90 days. The actual closing is mostly a bunch of paper signing and documents exchanging.
What is this all going to cost me?
Premiums are set by each state. In PA and NJ, when the property is financed, insurance policies are automatically issued to the owner and lender. The cost for these policies is calculated based on the property's sale price. In all states, you'll have the option to forgo the owner policy and purchase only the lender policy. Here, the premium cost is calculated on the financed amount—typically a lower figure. However, this option leaves you with more risk. You may always
to obtain a quote.
What risks are covered?
Errors in Public Records
Incorrect information in deeds and mortgages regarding names, legal descriptions, signatures, etc.
Claims against the property or seller, which become the new owner’s responsibility after closing (ex: unpaid taxes, debts to creditors, assessments, etc.)
Claims to Ownership
By the spouse of a former owner, or by “the missing heir” of a deceased owner who did not receive his share of the estate.
Transfers by previous sellers
who did not lawfully own
Anything not covered?
Standard exclusions include:
Zoning restrictions, right to condemn property, etc.
Limitations on Land Use
Such as laws against
Easements, Rights of Way and Other Encumbrances
Will be noted in the deed
or, otherwise, in the
Which may prohibit certain uses of your property.
And WHO exactly is covered?
It’s a good idea to get your own title insurance policy for protection, just in case there is a claim against your property.
When you borrow money to buy property, you are typically required to buy title insurance to cover the outstanding balance on the mortgage. However, the lender’s title policy does not protect you. It only protects whoever you are borrowing from.
A claim was made against my title...
Now what? Notify us immediately! Do so in writing and Include copies of all related letters and documents. We will pursue one of the following courses of action:
Pay the claim
against your title.
Negotiate with the other party to settle the claim.
Defend the title in court.
Pay legal costs incurred in defending the title.