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Title Insurance 101: Understanding the Importance of the Basics

by | March 19, 2024

What is Title Insurance?

A title is a legal document that proves ownership of a property. When you buy a house, you want to be sure that the title is free and clear of any liens, encumbrances, or other issues that could affect your ownership rights. However, sometimes issues can arise that are not discovered during the title search process, such as fraud, forgery, or mistakes in public records. In such cases, title insurance can provide protection against financial losses and legal expenses that may arise from these issues.

Legalty Title and Real Estate Services serves the following counties within Pennsylvania; Philadelphia, Montgomery, Delaware and Chester. Along with central and south New Jersey. Order your title today!

Why do I need Title Insurance?

Title insurance is important when buying a house because it protects both the homebuyer and the mortgage lender from any issues or defects in the property’s title that may arise after the purchase.

Want to learn more, check out this informative resource provided by Fidelity National Title Group.

Who pays for Title Insurance?

In Pennsylvania, the buyer generally pays for title insurance at closing, and there are two types of policies available: lender’s title insurance and owner’s title insurance. Lender’s title insurance protects the lender’s investment in the property, while owner’s title insurance protects the homebuyer’s investment. Owner’s title insurance is optional, but it is highly recommended to provide additional protection for the homeowner.

The party responsible for paying for title insurance can vary depending on the specific terms of the purchase contract and negotiation between the buyer and seller. Generally, the buyer pays for the lender’s title insurance policy, which protects the lender’s interest in the property, while the seller typically pays for the owner’s title insurance policy, which protects the buyer’s ownership rights. However, this can be subject to negotiation and can be different in each transaction. It’s important to review the terms of the purchase agreement carefully and consult with a real estate attorney or title insurance company to understand the specific terms of your transaction.

How Legalty Title and Real Estate Services Can Help

Legalty has a team of solution-oriented, real estate law gurus who ensure dreams of home ownership and real estate investments are secure by providing comprehensive title insurance and legal services to clients. Services provided by Legalty include; comprehensive title and settlement services for residential and commercial real estate, deed transfers, refinancing and real estate legal services.

Want to learn more about Title Insurance? Check out Legalty’s Frequently Asked Questions.

Eager to reach out to one of our team members? Please fill out our contact form or call at 610.686.6042.