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Today I’m with Robin Mancuso DeLuna. She’s the President of Cross Keys Abstract & Assurance, Inc. I’ve done a lot of work with Robin and her team, and I rely on them for their title services. We’re going to learn as much about title insurance as possible.
To start, title insurance is a form of indemnity insurance predominantly found in the United States which insures against financial loss from defects in title to real property and from the invalidity or unenforceability of mortgage loans. Basically, it ensures that you’re buying the home from the proper owner, and it makes sure that there are no debts or liens against the property. You don’t want someone coming to your home years down the road making a claim to the title of your property.
So, why should a buyer obtain an owner’s policy that’s different from the lender’s policy? The owner’s policy is based off the sale price, and the lender’s policy is based off the loan amount. If you bought a $500,000 home, the owner’s policy would cover you for claims up to that amount. The lender’s policy would cover the amount of your mortgage, or about $250,000. Often times a lender’s policy is required before getting a mortgage.
To start, title insurance is a form of indemnity insurance predominantly found in the United States which insures against financial loss from defects in title to real property and from the invalidity or unenforceability of mortgage loans. Basically, it ensures that you’re buying the home from the proper owner, and it makes sure that there are no debts or liens against the property. You don’t want someone coming to your home years down the road making a claim to the title of your property.
So, why should a buyer obtain an owner’s policy that’s different from the lender’s policy? The owner’s policy is based off the sale price, and the lender’s policy is based off the loan amount. If you bought a $500,000 home, the owner’s policy would cover you for claims up to that amount. The lender’s policy would cover the amount of your mortgage, or about $250,000. Often times a lender’s policy is required before getting a mortgage.
What do you gain by purchasing an enhanced policy? This is something for the owner of the home and usually costs about 10% more, and this covers future issues like zoning or other encumbrances.
The price of title insurance in Pennsylvania is regulated. Many of the fees are regulated, and really the only thing separating Robin from others is her dedication to customer service.
One thing to know is that title claims are rare and they really don’t occur often. However, when they do happen, they can get expensive very quickly and you don’t want to finance your own defense. Robin says that what can make a big difference is the amount of research that the title company goes through. Robin has advised buyers not to purchase homes because of murky claims that could cause trouble down the road.
If you have any questions, please don’t hesitate to contact myself or Robin. We look forward to hearing from you!
The price of title insurance in Pennsylvania is regulated. Many of the fees are regulated, and really the only thing separating Robin from others is her dedication to customer service.
One thing to know is that title claims are rare and they really don’t occur often. However, when they do happen, they can get expensive very quickly and you don’t want to finance your own defense. Robin says that what can make a big difference is the amount of research that the title company goes through. Robin has advised buyers not to purchase homes because of murky claims that could cause trouble down the road.
If you have any questions, please don’t hesitate to contact myself or Robin. We look forward to hearing from you!
