Buying a home is a very confusing process, especially if someone has never completed a Pennsylvania real estate transaction before. There are many requirements and expenses that people do not anticipate and may wonder if they actually need to accept.
Examples include survey, appraisal and inspection costs, as well as numerous other closing expenses, like title insurance. Title insurance often costs several thousand dollars, depending on the purchase price of the property. What do prospective homeowners looking over settlement statements need to know about title insurance?
There are two policies for a reason
Title insurance protects the financial investments that different parties make in a property. There will usually be a mandatory policy required for the lender whenever someone purchases a property with financing. Should there be a title issue that arises later, the lender’s policy will reimburse them for the remaining principal balance on the mortgage that they funded. The buyer’s policy will protect their investment, including the down payment that they made, the equity they have accrued and any investments they have made in repairing or upgrading the property. The title search process can potentially help people spot risky investments or resolve title blemishes before taking ownership.
Buyers have rights
While the home buyer easily cannot forego the coverage in many cases, they still have certain rights when it comes to Pennsylvania title insurance. Specifically, they have the right to choose the company that provides their title insurance and does the title research. Most people simply go with the corporate title company recommended by their real estate agent, but that isn’t necessarily the most cost-effective solution, nor does it offer the greatest degree of protection.
Working with a local real estate attorney for title insurance purposes can eliminate certain costs associated with corporate policies and can ensure a more hands-on approach to the research for the title policy. Big title companies streamline and even automate the title search process, making it easy for them to overlook an issue that could cause major issues for a buyer in the future.
In other words, using a local attorney for title insurance support can potentially cost less while leaving someone with a higher-quality final product. Having the right information often benefits those buying real property who are not entirely familiar with their rights and the laws that apply.