Key question regarding the Title Insurance Process in Pennsylvania and New Jersey. Below are Pennsylvania and New Jersey tips on Title Insurance Process provided by Diana Escobar-Wachter at Access Abstract Corporation.
Pennsylvania and New Jersey Tips on Title Insurance Process
Title insurance is an indemnity policy that insures against loss resulting from defects of title to real property that result in a challenge to your ownership, unknown liens, encumbrances or other defects, unmarketable title, as well as from the invalidity or unenforceability of mortgage liens depending on the type of policy being purchased.
Why You Need Title Insurance
When you purchase your home, how can you be sure that there are no problems with the home’s title and that the seller really owns the property? Problems with the title can limit your use and enjoyment of the property, as well as bring financial loss. That is what a title search and title insurance are for.
The Title Search
After your sales contract has been accepted, a title professional will search the public records to look for any problems with the home’s title. This search typically involves a review of land records going back many years. More than 1/3 of all title searches reveal a title problem that title professionals fix before you go to closing. For instance, a previous owner may have had minor construction done on the property, but never fully paid the contractor. Or the previous owner may have failed to pay local or state taxes (See below for some other common title problems). Title professionals seek to resolve problems like these before you go to closing. What happens if a problem arises after you move in? Read on.
The Owner’s Title Policy
Sometimes title problems occur that could not be found in the public records or are inadvertently missed in the title search process. To help protect you in these events, it is recommended that you obtain an Owner’s Policy of Title Insurance to insure you against the most unforeseen problems.
Owner’s Title Insurance, called an Owner’s Policy, is usually issued in the amount of the real estate purchase. It is purchased for a one-time fee at closing and lasts for as long as you or your heirs have an interest in the property. Only an Owner’s Policy fully protects the buyer should a covered title problem arise with the title that was not found during the title search
The Loan Policy
There are two types of title insurance: Owner’s title insurance, as mentioned above, and Lenders title insurance, also called a Loan Policy. Most lenders usually require a Loan Policy when they issue you a loan. The Loan Policy is usually based on the dollar amount of your loan. It only protects the lender’s interests in the property should a problem with the title arise. It does not protect the buyer. The policy amount decreases each year and eventually disappears as the loan is paid off.
Title Insurance Process in Pennsylvania and New Jersey
Our goal is to facilitate the purchase, sale and or financing of residential and commercial real estate through a proactive approach that goes beyond just being a vendor. We understand that the only way to bring out the greatest value of the company’s products and business, is to partner with the customer, listen to their needs and anticipate the solution.
This blog with Pennsylvania and New Jersey tips on Title Insurance Process was prepared by Diana Escobar-Wachter, Account Executive at Access Abstract Corporation. Reach Diana at 610-461-2910 or wachterd@accessabstract.com.
