Crescita Title Insurance
Title insurance is a form of insurance that protects against the risk that the title to a property may not be valid. Issues with the title can restrict your use and enjoyment of the property and may result in financial losses. There are two main types of title insurance policies: an owner's policy and a lender's policy.
TITLE INSURANCE
Owner's Title
Insurance
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Purchased for a one-time fee at closing.
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Lasts for as long as you or your heirs have an interest in the property.
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Typically issued for the amount of the real estate purchase.
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Protects against hidden problems such as incorrect signatures, forgery or fraud, defective recordation, encumbrances, judgments, and liens.
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The title company stands behind you both monetarily and with legal defense if needed.
Lender's Title Insurance:
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Required by financial lending institutions when issuing a loan to a homebuyer.
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Based on the dollar amount of the loan.
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Protects the interests of the lending institution in case of title issues.
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Does not protect the buyer; the policy amount decreases each year and eventually disappears once the loan is paid off.
Cost of Title Insurance
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Title insurance rates are controlled by the Pennsylvania Title Insurance Rating Bureau and the Pennsylvania Department of Insurance.
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Insurance agents in Pennsylvania can only charge a set rate for title premiums.
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The rate depends on the purchase price of the real estate property.
Attorney Involvement in Real Estate Closing:
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Pennsylvania does not require an attorney to be involved in real estate closing transactions.
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With a licensed title agent on staff, Crescita Abstract LLC provides dedicated attention to your real estate needs.
In summary, title insurance is a valuable protection against potential issues with the title to a property, providing financial security and legal defense. Both owner's and lender's policies serve distinct purposes, and the cost of title insurance is regulated in Pennsylvania. While an attorney is not required, having a licensed title agent, such as Crescita Abstract LLC, can ensure a smooth real estate closing process.