Title Insurance FAQs: Everything You Should Know

Title-Insurance-FAQs
Title Insurance FAQs: Everything You Should Know

Most people only purchase title insurance a couple of times in their life. So it’s not at all unusual for customers to have questions about this. We believe that all title service customers deserve to have a thorough understanding of what they’re buying and why it is important. As such, we are always happy to answer our customers’ questions about title insurance. Below, you’ll find some of the most common questions we receive — along with their answers.

What are the two types of title insurance?

The first type of title insurance is owner’s title insurance, which protects your interest in the home as its owner. The second type is lender’s title insurance, which protects the bank that holds your mortgage. Lender’s title insurance is required in most cases. Owner’s title insurance is not always required, but it is highly recommended. The best title insurance companies will talk with you about your risk and help you decide whether an owner’s policy is needed.

Do you need owner’s title insurance and homeowners insurance?

Sometimes customers assume that if they have homeowners insurance, they don’t need owner’s title insurance. However, both types of insurance are important because they cover different risks.

Homeowners insurance applies to your home and physical property.  The owner’s title insurance protects the deed to your property and your actual ownership of the property. If any liens against the property or other defects in the deed were to be discovered after closing, title insurance would protect your ownership of the home. It would also pay for any fees or costs related to the discovery.

Do you need title insurance when you refinance?

When you refinance a mortgage, you do still need a lender’s title insurance policy. This policy protects the bank from any unknown liens or judgments against the property.

Do you need title insurance on new construction?

In most cases, you should still purchase title insurance when buying new construction. Even though the building is new, the land is not. The land will have had at least one owner before you. In this case, title insurance will protect you and the lender against any potential defects in the title for the land.

How do you pay for title insurance?

Title insurance is typically paid for during closing. If you close with a title company in Pennsylvania, the fee for title insurance is often wrapped up in a closing fee that also includes the title search and the settlement fee. The fee for title insurance is a one-time charge.

Hopefully, these questions and answers have cleared up some of the queries you had about title services. If you’re looking for a title company and an escrow agency , contact Heritage Land Transfer. With more than 30 years of experience, our award-winning team of professionals always put the clients’ needs first. We partner with industry leaders and employ our own team of in-house attorneys to ensure a smooth, worry-free closing process.

Are You Able to Buy a Title Insurance Policy After Closing?

Are You Able to Buy a Title Insurance Policy After Closing?

Purchasing lender’s title insurance is generally a part of the home buying process. But what about the owner’s title insurance? If you did not purchase an owner’s title insurance policy during the home buying process, can you buy one after closing? The short answer to this question is “yes,” but there are a few more details worth mentioning.

The Ideal Time to Buy Title Insurance

If you close on your home and then realize you want title insurance, a title service will typically allow you to buy a policy. However, buying title insurance after closing is not the best choice. You’re far better off buying such a policy during the home buying process, when possible.

There are a number of issues that can be revealed with a home’s title shortly after closing. You may discover that there was an error in public records, and someone else has a claim to the property. Or, you may discover that there is an outstanding lien on the property. If these issues are revealed in the first few weeks that you own the home and you don’t have title insurance, you’ll be held financially responsible. On the other hand, if you buy title insurance before closing, you’ll be protected — whether an issue comes to light the day after the sale or 20 years down the road.

The Right Type of Title Insurance

Don’t assume that the lender’s title insurance that you’re paying for will also cover you, as the owner of the home. That policy exists to protect the bank that holds your mortgage. Lender’s title insurance is required when you buy with a mortgage, so it will automatically be included as a part of your home purchase. The buyer typically pays for the lender’s title insurance as a part of their closing costs.

For your own protection, you need an owner’s title insurance policy. Typically, you can purchase such a policy from the same title company that issues your lender’s title insurance. Sometimes, you may be able to negotiate with the seller and arrange for them to pay for your title insurance policy. This can be seen as an act of good faith; it’s a reassuring sign that, to the seller’s knowledge, the home’s title is clear and free from defects.

If you recently purchased a home and did not buy an owner’s title insurance policy, then buying one now is better than having nothing. On the other hand, if you have not yet purchased a home, then you should aim to buy title insurance prior to closing.

Feel free to contact Heritage Land Transfer if you’re looking for an escrow agency and title company Pennsylvania residents trust. We’ve been in the business for more than 30 years, and we take a personalized approach with every client. Our guaranteed lowest rates, efficient processes, and lightning-fast, convenient closings make us the favorite of buyers, sellers, realtors, and lenders alike!

Title Endorsements: The Concept and the Types Explained

title company Pennsylvania
Title Endorsements: The Concept and the Types Explained

As you go about buying real estate, you’re likely to encounter some less-familiar terms. One of these terms is “title endorsement.” Your real estate agent may mention title endorsement, or you might see it listed on an estimate from your title company. In either case, it’s a good idea to understand this term so you have a better idea of what you’re paying for and why you need it.

So, without further ado, here’s an explanation of the title service known as title endorsement, along with a look at the different types of title endorsements.

What Is Title Endorsement?

Perhaps you’re familiar with title insurance. It is a type of insurance that protects the buyer or the lender from any liens or claims against the title that may be revealed after real estate is purchased. Title endorsement basically takes things one step further from title insurance. It protects you against specific types of issues with your property’s title.

Title endorsement is not necessary for every real estate transaction. However, it can be a very smart buy in certain situations. If you or your attorney have any reason to suspect there may be a specific issue with a title, you can purchase a title endorsement against that issue. 

What Are The Different Types of Title Endorsement?

There are many, many different types of title endorsements. Those most commonly used types are explained below.

Survey Coverage

Survey coverage protects your interests should there be a discrepancy between the land identified on the title and the land that’s listed on an insurance policy. This is helpful coverage when buying large tracts of land with poorly defined boundaries.

Minerals and Substances

Does someone have an easement to access minerals, oil, or other substances located beneath your land? A title endorsement can protect you should these parties cause damage to your land when adhering to the terms of the easement.

Zoning

A zoning endorsement can protect you if the local jurisdiction changes the zoning in a way that keeps you from using your property in the way you intended. This is a common title endorsement for business owners.

Access

If your property does not directly border a public street, such as if the driveway to access your home is on a neighbor’s land, you will want an access endorsement. It protects you from losing that pathway to access your land.

Easements

Perhaps a neighbor has an easement allowing them to use your driveway to access your land. Or, perhaps the power company has an easement to access lines on your land. An easement endorsement, drawn up by a title company Pennsylvania residents trust, can protect you in this case.

Could you benefit from having a title endorsement drawn up as a part of your real estate purchase? Reach out to your Philadelphia title company for their expert advice. Heritage Land Transfer would be happy to help. We’re a full-service title company and escrow agency, and we always put customers first.

Our team of expert professionals provides a seamless title transfer experience, guaranteed lowest rates, and the fastest closings. We believe in making the real estate transaction a happy experience for our clients and partners alike, and to that end, we do what it takes, including traveling to their preferred locations.