Protect Your Home with Title Insurance
Making final settlement is more than signing all the paperwork. Real Estate settlement is a process which includes examining the new property's title in preparation for sale, and insuring that title against issues that may arise in the future. Service Abstract will manage your final settlement and walk you through all the important decisions you'll need to make about your new property's title, the deed and title insurance.
What is Title Insurance?
More than likely, you will need title insurance. If you're borrowing money to purchase real estate, or if you're refinancing an existing mortgage loan, your lender will require that you purchase a Lender Title Insurance Policy to protect their interests. Although an Owner's Title Policy is not mandatory, it is highly recommended to protect the rights as the homeowner- and guard against expensive legal problems - should your legal ownership be contested. And if you're already paying for a lender policy, the cost of the owner's policy is only incrementally more. And that owner's policy is valid as long as you own the property, even if you refinance.
Title Insurance Cost
Title Insurance is purchased by the buyer with a single amount based on the mortgage or refinance loan, and is due at settlement as part of closing costs. The cost of your title insurance will depend on the purchase price of the property and the mortgage loan amount. Title insurance controlled by the state, but additional fees will apply for any endorsements (additions to the policy) the lender may require, along with nominal title processing fees. To estimate the cost of your title insurance for Pennsylvania or New Jersey properties, try our instant title insurance calculator.
Lender Policy vs Owner Policy for Title Insurance
A Lender policy protects the Lender as a stakeholder, while an Owner's policy, if purchased separately, protects the homeowner against future claims that challenge their rightful ownership of the property. With owner's title insurance, the homeowner will not be responsible for any legal fees to defend against claims that follow the property, like unpaid mortgages, back taxes, or garnished wages associated with previous owners.
Title Insurance for a Refinance
People often ask if they still need title insurance for a refinance. The answer is both yes and no. When you refinance, you are closing one loan and taking out another. Because it's a new loan, your lender will require that you purchase a new Lender's title insurance policy. However, if you have an existing owner's policy, that remains in effect for as long as you own the property, no matter how many times you refinance, and does not need to be replaced.
When to Order Title Insurance
If you have been assigned a settlement date, or if you have a signed Agreement of Sale, it's time to move ahead. Contact your preferred settlement company, get a quote, and discuss any questions or concerns you may have. Ordering title insurance with Service Abstract is as simple as submitting your request using our online title insurance order form. One of our licensed title agents will be in touch with you and we'll take it from there.
Service Abstract Settlement Services
We tailor our services to the specifics of your transaction in order to legally transfer ownership of the property from the seller to you:
- Coordinate communication between all involved parties
- Perform Title Search
- Clear Title Defects
- Issue Title Insurance policies
- Hold monies in escrow
- Prepare and review your settlement sheets
- Conduct your final settlement
- Record Mortgage & Deed with local municipalities
Service Abstract LLC is an agent for Old Republic National Title, Chicago Title, and Fidelity National Title Group. As members of ALTA, the American Land Title Association, we follow all ALTA guidelines for best practices for title insurance companies.