Heartland Abstract Answers: How Much Does Title Insurance Cost On Average?
For most people, buying a home or property is one of the most significant purchases they will ever make. An essential part of the transaction is evaluating the title and protecting the buyer and the lender against risks by getting title insurance.
Title insurance is something most homebuyers are familiar with, and virtually all will pay for, yet few understand. If you are buying a home and are looking for title insurance in Phoenixville, PA, you likely have many questions.
What is a Title Insurance
Title insurance is a type of insurance policy that protects homebuyers and lenders from risks caused by a "bad title" or anything that would prevent the legal transfer of property. Title insurance has evolved and protects land and home buyers from fraudulent practices. These fraudulent practices include sellers offering property they do not own or selling the exact property to more than one person.
How Does Title Insurance Work?
When someone begins buying a home or property, a title insurance company conducts a "title search." This search is an in-depth review of the home's records to ensure that nothing stands in the way of its purchase and that the property details in the documents match the actual land and property. The term "title" refers to a person's legal claim to the property or a portion of the property's value. A title search will uncover any defects, also called a cloud, affecting the property. The seller must resolve these defects before the property can transfer ownership.
What Are the Most Common Title Defects?
Land ownership and everything surrounding it can be complicated, and a title search and title insurance protect buyers and lenders from legal entanglements. Because of this, many title defects could prevent or delay the purchase of a property.
- Mistakes in public records
- Mechanic's liens against the property
- Bankruptcies
- Unpaid taxes
- Child support liens
- Spousal support liens
- Other liens
- Illegal deeds
- Encumbrances
- Unknown easements
- Boundary disputes
- Missing heirs
- Undiscovered or erroneous interpretation of wills
- Falsification of public records
- False impersonation of a previous owner, such as an ex-spouse
What Does Title Insurance Cost?
The cost of title insurance premiums can vary by state and by the home or land value. Typically, title insurance costs around $500 for a lender policy and $1,500 for homeowner policies.
Tips for Buying a Title Insurance Policy
Most lenders work with recommended title insurance companies, but that does not mean you can't choose your own. The best course of action is to do your research. Find out about a company's service standards, expertise, and prices.
Here are some ways to get the best deal on title insurance:
- Shop around. Find a company that offers the best value but never sacrifices expertise for a few dollars. Title mistakes can be costly.
- Ask about bundling. Some companies offer a discount if you combine the lender and owner policies.
- Negotiate add-on fees. There is a multitude of fees added to the total premium. Many lenders are open to negotiating those fees.
- Negotiate with the seller. A highly motivated seller may be willing to pay for the title insurance. But don't make this a make it or break it deal, especially in a competitive market.
Why Choose Heartland Abstract
Many lenders, builders, and real estate agents see title insurance as an additional profit center and will use a buyer's confidence in them to steer them to their title company. These companies will often build in "junk" fees because they have to share profits with referring partners.
Heartland Abstract does things differently. Heartland does not share profits with anyone else and does not tack on extra charges or junk fees- ever.
Title Insurance Pottstown, PA and Surrounding Areas
In Pottstown, PA, Heartland Abstract is uniquely positioned to serve clients statewide. With over 20 years of exceptional service, Heartland Abstract can offer policies insuring any property in all 67 counties in Pennsylvania, primarily in Eastern Pennsylvania, including Montgomery, Berks, Chester, Lehigh, Delaware, Philadelphia Bucks, and Northampton Counties.
For more information about Heartland Abstract or their exceptional title insurance services, you may visit their office at 400 Creekside Dr., Pottstown, PA, 19464. You may also reach them by email at amonastra@heartlandabstract.com or calling (610) 326-6300.
