Home owners often ask about title insurance, what it covers, and and if it is necessary. Lenders title insurance is required with most mortgages, however, owners title insurance is traditionally optional. Buyers should evaluate the facts and decide for themselves on whether the expense is worthwhile given the costs and coverage. Below are Philadelphia title insurance overview.
Why Insurance Is Helpful Even After a Title Search
Before closing, a title search is typically performed by a closing attorney. This confirms that no other entity has a claim to the home (based on available records) and that the title is clear to be transferred to the buyer of the property. The title search is not fool proof and may not catch defects in the title. Title insurance will protect you against un-caught title problems and the costs associated with defending your rights to property.
Title Insurance Coverage
Title insurance is a one-time charge at closing that will remain valid for the entire time that you retain ownership of the property. You can purchase it after closing, but it is normally less costly when offered at closing. The cost is based on the amount of the mortgage.
Philadelphia Title Insurance Overview and Items Covered
Title insurance general coverage includes…
- Fraud in connection with the execution of documents.
- Undue influence on a seller or executor (of a will).
- False impersonation by those alleging to be owners of a home.
- Incorrect marital status of a seller.
- Mental incompetence of sellers.
- Participation by a minor.
- Non-delivery of essential paperwork.
- Unresolved claims not shown inthe records.
- Incorrect indexing at Registry of Deeds.
- Clerical mistakes in recording legal documents.
- Delivery of deeds proceeding the passing of a seller.
- Deeds executed under false powers of attorney.
Some policies also cover…
- missing heirs.
- Wills not properly probated.
- Incorrect interpretation of wills.
- Birth of heirs after the date of a will.
- Incorrect property surveys.
- Inaccurate legal descriptions.
- Blunders fomr similar names.
The information above is simply an introduction. Consult a local title company for specific Philadelphia title insurance overview and pricing, as they generally differ based on the provider.
