Frequently Asked Questions

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In Pennsylvania, title insurance is a form of protection against financial loss from hidden risks related to property ownership, such as fraud, forgery, and undisclosed heirs, and is available in two types: a mandatory lender's policy (if you are financing your purchase) and an optional, but highly recommended, owner's policy. The policy is a one-time payment at closing, and the owner's policy protects you and your heirs for as long as you own the property.

When seeking to purchase or take legal ownership of a property, you are essentially acquiring the rights to the land and any structures on it via a “title.” In real estate, “title” to a property is transferred through a deed.

To help ensure there are no liens or claims that affect the buyer’s use or enjoyment of the real estate, a title search is conducted by a title company. Within the search, the title company reviews public records such as deeds, mortgages, court judgments, tax records, estate documents, and divorce decrees, disclosing important things impacting the property’s future use, such as utility easements or deed restrictions. Amidst this process, title insurance is designed to safeguard this ownership by providing protection against potential issues that may arise with the property’s title now or down the road, protecting both buyer and lender (if a property loan or mortgage is extended) from financial loss sustained from defects in a title to a property.

Title insurance is essential to protect you from past issues that could compromise your ownership of a property, such as unpaid taxes or liens from previous owners, errors in public records, mechanic's liens, or claims by unknown heirs. A title search attempts to uncover these risks, but title insurance provides financial protection and covers legal costs if a covered issue arises, ensuring your financial investment in the property is secure.

If a buyer has title insurance, any defects or title issues which may arise after closing will be resolved/coordinated by the title company. Instead of the buyer being left to find a way to resolve the issue, the title company will work with the buyer to find a way to either compensate or resolve the claim in a timely fashion. A buyer’s investment in real estate is essentially safeguarded by the title company, and the buyer will have peace of mind knowing that they will have support if a title issue is discovered.

Owner's Policy:

This policy protects your equity in the property and is optional for homeowners, though it is strongly recommended. It covers you for the duration of your ownership and can be purchased at the same time as the lender's policy for an additional cost.

Lender's Policy:

This policy is required by your mortgage lender if you are taking out a loan to buy the property. It protects the lender's financial investment in the property. 

The charge for a Pennsylvania title insurance policy is based on the applicable approved rate and the amount of insurance provided. Endorsements or other transaction-specific requirements may add charges. Contact Atlas Abstract LLC with the property and transaction details needed to prepare an estimate.