Title:
The rights of ownership recognized and protected by the law. A combination of all the elements that constitute the highest legal right to own, possess, use, control, enjoy and dispose of real estate or an inheritable right or interest therein.
Buying or refinancing property is not without risk – and that risk is often related to the ‘title’ to the real estate.
The title may contain problems such as defects in ownership, liens, outstanding mortgages, judgments, previous forgery or fraud, clerical errors and more.
Begin your title search today!
CONGRATULATIONS
ON YOUR INVESTMENT
The buyer does have the option to decline the owner’s policy coverage and purchase only the lender’s policy. In this case, the title insurance cost is calculated on the mortgage amount—and may result in a modest savings at closing. However, the homeowner would then be completely at risk for title issues including some of the most common:
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Title being vested in (owned by) someone other than the insured (you).
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Defects, liens (unpaid mortgages, judgments, taxes, etc.) or encumbrances on the title including defects caused by forgery, fraud, under influence, duress, incompetency, incapacity, or impersonation.
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No right of access to and from the land.
Please protect yourself.
Title Insurance
Title insurance is a one-time insurance policy purchase made in advance that protects the property owner and/or lender against a loss due to specific covered risks related to the title to real estate. Title insurance is underwritten by a national title insurance company, but title agents such as Leap Settlement Services facilitate the purchase of your title insurance policy and provide settlement services to help you complete your purchase or refinance successfully.
Each title insurance policy is subject to the terms, conditions and exclusions based on the exact property whose title the policy guarantees. When a mortgage lender is involved in a purchase or refinance, they generally require a title insurance policy that names the lender as the beneficiary and covers any loss to the lender’s investment (their loan amount). However, the lender’s policy does not cover any loss the property owner may incur. For the homeowner to have protection, they must also purchase an owner’s title insurance policy.
Many people are comfortable with the idea of insuring things that are valuable to them including their lives, their automobiles, their health (and their pet’s health!), art purchases, and so on…but protecting the title to real estate is also critical. Owner’s title insurance protects your property rights for as long as you own your property. If a valid claim arises, the title insurance company is obligated to pay for all legal costs, deal with the inconvenience of the claim, and compensate you for any resulting financial loss.
Title insurance premiums are established by each state, with every title agency obligated to charge the set rate so that consumers do not experience shifts in premium costs. In Pennsylvania and New Jersey, when the property being purchased involves a mortgage, title insurance policies are issued simultaneously to the owner and the lender at the closing. This means that the cost for these policies is calculated on the sale price which is typically higher than the mortgage amount.
