|
 FAQs
Why Title Insurance?
Owning Real Estate is one of the most precious values
of freedom enjoyed in this country. Typically, your home is
your number one asset. When you buy a house, you want to make
sure that no one other than your agreed upon mortgage lender
will have any claims, liens or encumbrances against your home.
What's
Title Insurance?
Title insurance is protection against loss resulting from
defects in title to a particular described parcel of land.
Defects might be in the form of judgements, mortgages, outstanding
taxes, municipal charges or a defect within the chain of title.
Title
Insurance Protection
Some
common hidden risks protected by title insurance:
- False
impersonation of the true owner of the property.
- Forged
signatures on deeds, releases and other documents.
- Deeds
signed by persons of unsound mind.
- Deeds
signed by minors.
- Invalid
documents executed by an expired power of attorney.
- Fraud.
- Unrecorded
easements.
- Undisclosed
heirs of former owners of your home or land on which it
is situated.
- Creditor claims
- Mistaken
interpretation of wills and trusts
- Incorrect
representation of marital status
- Mistakes
in recording legal documents
- Incorrect
legal descriptions
- Federal,
state inheritance and gift tax liens
- Errors
in tax records
- Easement
by prescription not discovered by a survey
- Deeds
delivered after death of grantor or grantee, or without
consent
of grantor
- Discovery
of later will after probate of first will
How
Much Does It Cost?
The title insurance premium is based on the amount of coverage.
Typically the purchase price of your home, or if you have
a ($1.00) deed, you would base the premium on the appraised
value of your home. The premium is determined and regulated
by the Pennsylvania Department of Insurance, so it is not
negotiable.
How often is the premium paid?
The premium is paid only once! The policy remains in effect
from the date the policy was issued through the entire time
the property remains with the owner. The only exception is
if the property is refinanced. Then the mortgage lender may
require title insurance to be purchased insuring the mortgage
lender's lien position. This policy is called a lender policy
and the price is based on the mortgage amount not the value
of the house.
What
does a title insurance company do?
Title
insurance companies...
- Conduct
title searches on the property.
- Check
taxes to determine if they are current.
- Examine
the title search to verify the legal owner and any debts
that are owed.
- Conducts
settlement: A Title Officer or an Attorney oversee the
closing of the transaction. Documents are signed, identity
of parties is verified, and money is collected and disbursed.
- Responsible
for the recording of all documents and issuance of the title
policy.
|
