Northeastern Pennsylvania Title Insurance Attorneys

What is Title Insurance?

Before any real estate transaction, the sellers need to prove they own the property they’re selling. The owners will need to provide a “marketable title” to do that. This is a document that proves they have ownership of the property and the ability to sell it. However, this is not always the case. A defect in the title can delay or prevent a transaction from occurring. A defect can be a lien on the property or a forged document. Problems with the title can cost you money, time, and possibly the real estate property.

There are two types of title insurance policies:

• Lender’s Policy – If you are getting a mortgage, most companies will require the purchase of a loan policy. This policy will protect you as the lender, and protect the bank or other lending institutions. It will last for as long as the lender has an interest in the property.
• Owner’s Policy – This type of policy protects you as the owner of the property as well as your investment. It will decrease any ownership risks by providing a title search before issuing either policy.

With a policy in place, the insurance carrier will pay for the costs of defending someone’s ownership in court. The insurance can also cover any financial loss you have if you can’t resolve your title issues.

The Title Search Process

When you purchase title insurance, your title agent will conduct a public record search to identify any possible issues or “clouds” that could affect your transaction. The search takes time since it’s incredibly complex, but it will uncover any unknown problems. Having such a thorough title search gives you peace of mind, assuring that there will be no issues in the future.

You may have a title insurance claim if the title search process finds mistakes such as clerical or filing errors that can impact your deed or survey. People can miss public records that can come back to hurt you.