Title insurance is important to have regardless of the state you live in. Truth be told, you never know if some long-lost heir of your property will come out of the woodwork and make a case for your home or business. There are two common types of title insurance: buyer’s and lender’s. Although title insurance works the same for the most part nationwide, there are two primary differences regarding title insurance that are unique to Pennsylvania.
At Hoegen & Associates, we possess trusted knowledge and experience in title insurance and can help clients. We provide an in-house title insurance company called Franklin Street Abstract, LLC, at our office in Wilkes-Barre and offer our services throughout Pennsylvania. For the benefit of our clients, Franklin Street Abstract has written over a billion dollars. Contact us today to get started.
Buyer’s Title Insurance vs. Lender’s Title Insurance
What is Buyer’s Title Insurance?
Buyer’s title insurance protects the owner of the property by assuring the title is as clean as possible. Without buyer’s insurance, you are at risk of a substantial financial loss or the loss of your property in the future. When you have a buyer’s policy, your title insurance company will perform a search on the title. This is meant to find any outstanding liens or flaws in the title so they may be corrected before being transferred to you.
What is Lender’s Title Insurance?
Lender’s title insurance, or “lender’s policy,” is meant to protect/cover the lender if there are any unknown mechanic’s liens or defects on the title. The lender’s policy lasts as long as they have a financial interest in the property. Most of the time, the policy ends when the mortgage is paid off, or the lender’s portion is repaid.
The Two Differences About Title Insurance in Pennsylvania
The All-Inclusive Rate
Pennsylvania is an all-inclusive state, meaning the title insurance premium, the title search costs, and the escrow and settlement fees are bundled together. In other states, there are separate costs associated with each service, but Pennsylvania is one of the few all-inclusive states. This helps to avoid unexpected fees and makes purchasing title insurance easier for property owners.
The Differential Premium
Differential premiums make buying title insurance in Pennsylvania fair and affordable. The way it works is that out of the lender’s and owner’s policies, you only pay the differential. For example, if the lender’s policy is $1,000 and the owner’s policy is $1,500, you only pay $1,500 in total, not $2,500.
Franklin Street Abstract, LLC
Franklin Street Abstract, LLC is Hoegen & Associates’ in-house title insurance company. When you need title insurance for a residential, commercial, or industrial transaction in Pennsylvania, the team at Hoegen & Associates and Franklin Street Abstract are who you can trust. We know the ins and outs of Pennsylvania’s real estate and title law and can ensure your title insurance will be handled appropriately and your assets can remain protected. Reach out to our office for assistance today!