Facts About Title Insurance in Bethlehem and Allentown, PA

Posted by TraditionalAbstractPA on March 8th, 2022

It is essential to conduct a title search before deciding on buying a new property. Taking the words of a prospective seller at face value would not be enough. There are many complexities in obtaining a title, and it always helps to invest in real estate when the title is clear and free of disputes. Sure, almost all property-related records are retained at the Registry and available online. Unfortunately, computerized records may not be found for old properties. The best way to conduct a title search would be to entrust the responsibility to a reputed company that has been carrying out the same service for years at a stretch. The buyer needs to buy title insurance in Bethlehem and Allentown, PA, even when the title seems clear and free of encumbrances.

It is interesting to note that such insurance is beneficial both for the property investor and the lender who would be financing the deal. Both parties would be protected from financial losses due to liens, defects in the title, or the presence of multiple ownership claims. It differs from typical insurance as this policy provides coverage for past events.

Types of Title Insurance

The title insurance consists of two distinct types, with the lender\'s insurance meant to protect the lender. Buying the owner\'s title insurance is not mandatory and may be avoided if the new investor wants to do so. Thankfully, the seller has to pay for the owner\'s insurance that covers title defects.

Risks of not being covered by title insurance

•  A forged title that cannot be transferred legally
•  Existence of unpaid mortgages or liens on the property
•  Impersonation of the previous owner
•  No signature by legal authority or notary on the documents
•  Deed execution by an individual not permitted to do so
•  Invalid/undisclosed or suppression of facts related to the property title
•  Errors in public records
•  Unmentioned Easement
•  Unpaid taxes
•  No lawful access to the property

Benefits of having title insurance

•  The insurance company will reimburse the costs for claiming ownership and associated legal costs.
•  The insurance carrier will also cover the financial loss caused by failure to defend the claim.
•  The title insurance company will bear expenses for rectifying the title.
•  It is a onetime payment with no monthly premium being charged.

Title Insurance Buying Process

The title search company that searched is sure to make provisions for title insurance. Once both parties sign the property purchase agreement, the money will be held in an escrow account. It has been observed that the lender\'s policy and the home owner\'s title insurance policy are bought together to guarantee complete protection for all concerned.

It is an excellent practice to entrust a reputed title company to provide settlement services in Nazareth and Allentown, PA. This includes title and escrow services and the preparation of real estate documentation.