STILL UNSURE?

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

contact our office directly

to obtain a quote.

What risks are covered?

Errors in Public Records

Incorrect information in deeds and mortgages regarding names, legal descriptions, signatures, etc.

 

Judgments,

Liens, Mortgages

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.

Invalid Deeds

Transfers by previous sellers

who did not lawfully own

the property.

Anything not covered?

​Standard exclusions include:

Government Regulations

Zoning restrictions, right to condemn property, etc.

Limitations on Land Use

Such as laws against

farm animals.

Easements, Rights of Way and Other Encumbrances

Will be noted in the deed

or, otherwise, in the

public records.

Restrictive Covenants

Which may prohibit certain uses of your property.

And WHO exactly is covered?

The Buyer

It’s a good idea to get your own title insurance policy for protection, just in case there is a claim against your property.

The Lender

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.

MAILING ADDRESS

403 York Road

New Hope, PA 18938

© 2020 by Princeton Assurance Corporation.

All Rights Reserved. Privacy Policy. 

Website by Lisa Torquato Designs, LLC.

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