Need To Buy Owners Title Insurance in Easton and Lehigh Valley, PA

Posted by TraditionalAbstractPA on March 14th, 2021

Most individuals harbor a hope of being able to own property someday. Getting the transaction done successfully can be complicated, requiring multiple professionals' involvement and the seller's consent. A prospective buyer should search for the existing title well before a change of deed occurs. Most lenders, including financial institutions such as banks, expect the borrower to buy title insurance in Easton and Lehigh Valley, PA.

This is a specific type of indemnity insurance that protects the interests of the lender and the buyer from problems arising due to defects in the property title. The insurance is two-fold, one consisting of a lender's insurance and an owner's one. The seller usually pays for the owner's title insurance so that the buyer's equity in the concerned property remains safe.

While buying the insurance is not mandatory, it helps protect the owner's interest in a conflict arising about the future ownership. Disagreements are usually concerned with the following being disputed between the existing owner and claimant.

· Area covered by the said home or land

· Pending taxes and liens on the property that were not discovered during the title search

· Existence of another will that has a different individual mentioned as the inheritor

· Dispute over the seller's rights

Fighting a prolonged battle in a court of law can drain one financially. The title insurance covers all such financial risks causing the new owner to remain content about enjoying property rights.


This type of insurance differs from conventional plans by covering events that may have occurred in the past instead of events in the future. The things covered by this insurance include:-

· Ownership disputes

· Forgery or faulty signature on the existing document

· Incorrect records

· Terms & conditions that may reduce the property value! This is explained by the term "restrictive covenants." It may be due to easements that had not been recorded before.

· Existing judgments on the property such as lawsuits and liens

Risks of not buying Title Insurance

Failing to buy the owner's title insurance can put the present owner in trouble, especially when several defects are discovered in the document after the transaction. It is always better to eliminate the following risks to enjoy ownership:

Problem with Buying- A flawed title can be expensive for the recent buyer. Existing back taxes and liens have to be borne by the present owner in addition to paying off the penalties.

A second claimant- Another person may claim to own a part of the property via the right of inheritance. The owner would have to enter into a traditional sit with the claimant or purchase the share without financial assistance.

Real estate experts recommend hiring an experienced title company to conduct a property title search in Lehigh Valley and Bethlehem, PA, thoroughly before going ahead with the buying process.

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