FAQ’S

What is Title Insurance and How Does It Work?

To put it simply, title insurance is a way to protect yourself from financial loss and related legal expenses in the event there is a defect in title to your property that is covered by the policy. Title insurance differs from other types of insurance in that it focuses on risk prevention, rather than risk assumption. With title insurance, title examiners review the history of your property and seek to eliminate title issues before the purchase occurs. Title insurance also differs in that it comes with no monthly payment. It’s just a one-time premium paid at closing.

Do I need Title Insurance?

Title insurance is a way to protect what is likely your largest investment—your home. An Owner’s Policy provides peace of mind that your title company will stand behind you if a covered title issue or defect arises after you have bought your home. Lenders often require that the consumer pay to obtain a lender’s policy of title insurance. Owners title insurance isn’t a legal requirement but is highly recommended because without it the buyer is left unprotected from any of the many risks that an owner’s policy covers.

What Does Title Insurance Cover?

Any number of title issues may arise, even after the most meticulous search of public records. These hidden defects are dangerous because you might not learn about them for months, or even years, after purchase. Some common examples of risks covered by your Owner’s Policy include defects in title caused by:

• Improper execution of documents
• Mistakes in recording or indexing legal documents
• Forgeries and fraud
• Undisclosed or missing heirs
• Unpaid taxes and assessments
• Unpaid judgments and liens
• Unreleased mortgages
• Mental incompetence of grantors on the deed
• Impersonation of the true owners of the land by fraudulent persons
• Refusal of a potential purchaser to accept title based on the condition of the title

What is Owner’s Title Insurance?

An Owner’s Title Policy is designed to protect you from covered title defects that existed prior to the issue date of your policy. If a valid claim is filed, your Owner’s Policy, subject to its terms and conditions, will cover financial loss up to the face amount of your policy.

What is Lender’s Title Insurance?

A Lender’s Policy ensures that your lender has a valid, enforceable lien on your property. Most lenders require borrowers to purchase this type of insurance policy to protect their investments. The borrower has the right to choose the title insurance company. A Lender’s Policy provides no coverage to the homeowner.

What is a Title Search?

A title search is a report of public records related to a particular parcel of land. A title search provides us with the current owner of record, the chain of title going back 60+ years, and the legal description for the property. It also turns up anything affecting the title such as past deeds, mortgages, judgments, liens, divorce filings, UCC filings, etc

Who selects the Title Insurance Provider?

Federal Regulations protect the right of consumers to select the Title Insurance provider of their choice. Don’t let anyone deny you this right! In a purchase transaction, the buyer has the right to choose the title insurance provider. In a refinance, the borrower has the right to choose the title insurance provider.

What is a “Full Service” Title Agency?

As a full-service title insurance agency, licensed to provide title services in Pennsylvania, Patriot Land Transfer is involved in all aspects of the closing, including property searches, necessary mortgage/judgment payoffs and tax information, preparation of title documents, disbursement of settlement funds, recording of documents, and issuance of title policies to both owners and lenders.

How is the rate for Title Insurance determined in Pennsylvania?

Title Insurance Rates in Pennsylvania are regulated by the State. In many other States, Insurance services are provided a la carte, depending on the services provided. Pennsylvania uses what is known as an All-Inclusive rate, and provides, within a single rate, the costs to perform a title search, conduct a closing, and issue the Title Insurance Policies. Excluded from this rate are incidental fees such as transfer taxes, notary fees, recording fees, courier fees, endorsements, etc.

How Much Does Title Insurance Cost in Pennsylvania?

The cost of title insurance varies proportionate to the purchase price -or- the loan amount in a refinance. You can refer to our rate calculator for an estimated cost of title insurance.

Why Patriot Land Transfer, Inc.?

Patriot Land Transfer is dedicated to providing the best service for our customers. We remain unaffiliated so we can focus solely on our customer’s interests and needs. Choose the company that works for you!