Important information about title insurance in Bethlehem and Allentown, PA

Posted by TraditionalAbstractPA on May 8th, 2022

Dealing with real estate issues can be enormously challenging, especially when the concerned person has no clue about the process involved. However, it would be best to garner information about the title of a property that one aspires to buy. Paying a small amount for obtaining the title insurance in Bethlehem and Allentown, PA, is yet another matter to be considered too.

One must inquire about the relevance of the term title and its relation to purchasing a property. It suffices to learn that the \'title\' is transferred to the buyer once the transaction is closed legally. It establishes ownership of the purchaser. A document is also provided to the new owner recognizing the validity of the ownership.

Title Insurance

There are various types of insurance that a person can invest in to protect their assets. Title insurance is also a form of insurance. Still, it differs from the other types as it helps protect the insured person\'s rights and lender against pre-existing problems that jeopardize ownership rights. There are no monthly premiums necessary to keep this insurance in force either. Instead, one needs to make a one-time payment that is not too much.

Cost of Title Insurance

The amount payable for obtaining title insurance varies between states. However, one usually has to pay 0.5% to 1% of the property purchase price as the insurance fee.

Types of Title Insurance Policies

It is interesting to know that there are two distinct types of title insurance to consider after purchasing a property. The different types of insurance are:

Lender\'s Title Insurance- Also known as the loan insurance, this policy protects the mortgage provider by keeping the loan amount intact and shielded in the event of disputes arising over the title. Any legal disputes between the buyer and seller do not result in financial loss for the lender. The buyer must invest in the insurance plan on behalf of the lender. This policy remains in force until the loan amount is repaid fully. Selling the property will also terminate the insurance cover.

Homeowner\'s Title Insurance- This policy protects the homeowner against any claims made after the property changes hands. This policy is optional, but real estate experts recommend investing in it as it can help the buyer to remain secure even when there is a dispute or defect related to the title. The new owner usually bears the cost, but there are instances of the seller providing the required expenses as per the terms of the sales agreement or because the seller wants to prove that there is nothing wrong with the title. It is the responsibility of the insurance company to cover the legal costs of defending the title against claims made by a third party after the sale of the property.

Before moving into the new home, the new property owner needs to take care of the settlement services in Nazareth and Allentown, PA. The services usually include all property-related services, including title search, title insurance, escrow, and closing.