Faqs

What is title insurance?
Insurance that protects you against loss should the condition of title to the land be other than as insured; title insurance offers protection against past occurrences which could result in a claim at a future date. If a buyer gives you a mortgage to finance a purchase of covered property from you, your coverage continues to protect your security interest in the property. Coverage continues as long as you have an interest in the covered property. If you should die, the coverage automatically continues for the benefit of your heirs. If you sell your property, giving warranties of title to your buyer, your coverage continues.

Why do I need title insurance?
Each lender requires that a Commitment to Insure be issued in their favor prior to closing. The information in that Commitment can only be obtained from a review and evaluation of documents in the local land records. Therefore, the title company must research these records for each transaction. This gives them and the lender a proper picture of all existing liens and encumbrances as well as accurate ownership and real estate tax and assessment information.

What types of risks are covered by title insurance?
Standard coverage usually covers forgery and impersonation; lack of competency, capacity, or legal authority of a party; deed not joined in by a necessary party (co-owner, heir, spouse, corporate officer, or business partner); undisclosed (but recorded) prior mortgage or lien; undisclosed (but recorded) easement or use restriction; erroneous or inadequate legal descriptions; lack of a right of access; and deed not properly recorded.

What will the title company need?

Information about your property (address, etc.)
Name/ Telephone # / Account # for each open mortgage
Social Security #
Lender’s Contact Information
Copy of prior Owner's Policy, if less than ten (10) years old

When should I contact the title company?
Once you have approval of your new loan and an agreement of terms has been drawn up with your lender. You should inform your lender at the time of application (or shortly thereafter) who you have chosen to conduct your closing. You may be required to place a non-refundable deposit with the title company to cover expenses, which will be applied to costs at the time of closing. It is advisable to contact the title company at least two weeks prior to closing.

What is a title search?
A title search is a in-depth examination of the public records that pertain to real property ownership and the rights/limitations of its use. The search period begins with the current owner(s) and extends back in time for a period of 60 years (commonly referred to as the "chain of title"). All documents affecting the subject property are reviewed for accuracy, completeness and proper execution. Similarly, all owners of record during the search period are indexed to determine their ownership interests, marital status and legal and mental capacity to enter into a contract to sell/buy real property. All conveyances must have been properly conducted and approved by the appropriate governmental departments.

What issues can a title search reveal?
A title search can show any number of title defects, liens, and other encumbrances and restrictions like unpaid taxes, unsatisfied mortgages, judgments against buyers/sellers and any restrictions or conditions limiting the use of the land.

Are there any issues a title search may not reveal?
Of course, for example, a previous owner could have incorrectly stated his marital status resulting in a possible claim by his legal spouse. Fraud, forgery, defective deeds, mental incompetence, confusion due to similar or identical names, and clerical errors in the city or county land records may be other prospective hindrances. These defects can arise after you've purchased your home and can jeopardize your right to ownership in part or full.

What does title insurance cost?
Cost is based on the value of your property. However, you pay only once, and the coverage continues in effect for as long as you have an interest in covered property.

What is a HUD-1 Settlement Statement?
This is a summary of the financial portion of the real estate transaction. The title company or closing agent is required by the Department of Housing & Urban Development to use the HUD-1 on virtually all one-family to four-family residential real estate transactions involving a lender. This document lists purchase price, loan amount, closing costs for the buyer and seller, and illustrates total charges and distributions charged to be disbursed to the parties involved. It also clearly summarizes the total amount due from the purchaser.

What legal fees does the title insurance cover?
Title insurance covers legal expenses that may be necessary to investigate, litigate, or settle an adverse claim.

Why do I need title insurance when my mortgage lender obtained it?
The lender's policy covers only the amount of its loan, which is usually not the full property value. In the event of an adverse claim, the lender would not be concerned unless its loan became non-performing and the claim threatened the lender's ability to foreclose and recover its principal and interest. And in the event of a claim, there is no provision for payment of legal expenses for an uninsured party.

What happens at the closing?
Normally, you will come to the title company's office to sign all of the new loan papers. You will have to show proper identification since many of these are legal documents which require a Notary Public's acknowledgment. The lender prepares and delivers all of your new loan documentation to the title company. You will sign many of the same documents and forms that you signed when you originally purchased your home.

How May We Help You?

6836 Tunnelview Drive
Penn Hills PA 15235
Office: 412-223-2622
Fax: 412-663-0117
Cell: 412-452-3633