Title Deed Search In Easton and Nazareth, Pa

Posted by TraditionalAbstractPA on July 18th, 2023

 Investing in property is considered to be a huge step. Indeed, ordinary citizens may purchase only one land or property during their lifetime. It is a relatively complex process involving a lot of time and money. The lending organization may impose some terms & conditions in addition. Ownership can be claimed only when the property title changes hands, with the new owner's name being added to the title document. Such a process can be handled by an attorney or a title company that takes on the onus on behalf of their client. Buying an insurance plan known as a title policy in Bethlehem and Lehigh Valley, PA, is necessary to ensure one's ownership too.

The new owner cannot grudge this need and decide to avoid buying the insurance. It is essential to know that the buyer, along with the lender, will be protected from financial losses resulting from title defects. While it is necessary to investigate the existing title thoroughly well in advance of buying the property, there may be multiple defects that go unnoticed. Title insurance can help one to mitigate such risks.

The new owner may seem pleased that the cost of the property has been paid in full courtesy of the bank or any other lender. Unfortunately, there may be violations noted in the title after it changes hands. The most devastating scenario is the presence of a legal heir who had been in the dark when the property was sold. It is scary to think about the outcome in such circumstances. Having title insurance can reduce the burden considerably.

Title Insurance Types

There are two distinct types of title insurance policies that one can purchase. Both policies benefit diverse participants after the real estate transaction related to a property is completed. It is essential to differentiate between the two before buying them.

Lender's Insurance Policy

The lender, a bank or an NBFC entity, almost always requires the borrower to provide them with an insurance policy when requesting a home loan. The title company will issue the policy to protect the finances of the lender in the event of a defect cropping up in the title at a later date. This policy only covers the lender, with the borrower unable to claim coverage. The buyer cannot avoid spending money on this policy, though. It is a requirement that needs to be honored.

Owner's Title Insurance Policy

This optional insurance policy offers the same coverage as the lender's policy and is meant for the property owner. An individual is not compelled to buy it, but it is advisable to obtain protection for the title that can be at risk for the following reasons:

· Ownership disputes

· Outstanding liens, lawsuits, or encumbrances

· Errors in the public records

· Forgery

· Undisclosed easements

Property transaction is a complex matter that requires validation of ownership. The first step to purchasing a home is to conduct a thorough title deed search in Easton and Nazareth, PA. This can be undertaken by hiring a title company or a legal professional. Individuals can do it single-handedly as well.