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5 Questions to Consider When You Get a Title Insurance Quote

Monday, August 17, 2020

Buying a home involves more than signing papers and getting a new pair of keys. The act of transferring property from owner to owner requires title insurance.

The title insurance quote process involves multiple steps, so it's important to prepare yourself before making any decisions. Let's go over the five essential questions everyone should ask before getting title insurance coverage. 

1. Who Pays for Title Insurance?

In most cases, the property buyer pays the full cost of a title insurance policy. However, this question is important to ask because the seller can choose to contribute some funds to the policy or pay for the policy altogether. Make sure you're aware of who is expected to pay for the policy before making any commitments. 

2. Which Policy Should I Get?

Title insurance protects you and your lender from title issues when transferring property ownership, but some options cover more than others.

There are various policy tiers to choose from that range in price. Before opting for the cheapest option, consider the benefits of a higher tier plan.

Consider what the basic plan covers and decide whether you want additional safety measures. More expensive plans typically cover uncommon situations, such as construction violations. 

It's vital to choose a title insurance company with a high-quality team of agents, inspectors, and attorneys. Your team will be researching all of the issues associated with a property.

Enhanced plans also provide coverage options and benefits. Be sure to assess the benefits of each plan against the potential problem you may face when buying or selling a property.

3. What Does My Policy Cover?

Once you've decided which plan is right for you, it's time to figure out what your plan covers. Coverage includes a thorough search of problems that may prevent you from obtaining legal property ownership.

As we mentioned earlier, issues with inheritances, taxes, legality are part of basic title coverage. Other policy inclusions are bankruptcy issues, undisclosed foreclosure, or old unpaid mortgages. All of these issues are serious and can block your right to access the property legally.

4. How Much Does Title Insurance Cost?

The cost varies and depends on the policy type you choose. Unlike other types of insurance policies, you immediately have to pay title insurance in-full. You don't have to worry about monthly premiums.

The cost also depends on the down payment, purchase price, and the loan amount of a new property. 

Some premiums are cost-regulated by state, including Pennsylvania. Discuss all of these factors with your insurer to fully understand how much you owe.

5. How Long Does a Title Claim Search Take?

Buying a home tends to be a time-sensitive process. Ask your insurer how long it takes for a team to search public records for any potential title disputes thoroughly. Knowing how long a search takes may prevent you from delaying the home closing or settlement process.

Real Estate Done Right

Whether you're buying or selling property, attention to detail is one of the most important steps for both the buyer and the seller. Obtaining a title insurance quote and assembling the perfect team to help you will make the process seamless and stress-free.

Ready to build your real estate team and purchase a title insurance policy? Contact us today and we'll help you get started!

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