Frequently Asked Questions
What is Title Insurance?
It is an insurance policy that protects the insured against loss should the condition of title to the land be other than as insured. Unlike other types of insurance that offer protection against future possible occurrences, title
insurance offers protection against past occurrences which could result in a claim at a future date. Coverage continues in effect for so long as you have an interest in the covered property. Title insurance provides the insured with "peace of mind" in knowing that you are receiving good and marketable title to the real estate you are purchasing.
Why Do You Need Title Insurance?
Title insurance will protect possibly the most important investment you’ll ever make – your home! With a
Pennsylvania title insurance policy, you have an indemnity contract that will reimburse you for loss
in the case that someone asserts a claim against your property.
If the title has been searched, how can there still be a defect?
Your insurance is issued after thorough research of public records. But even the most careful examination can’t completely guarantee that no problems are present, even despite the professional knowledge and experience of the title examiner. Other problems may also exist that cannot be disclosed in public records.
What does title insurance protect me against?
Title insurance will protect you in defending against any legal action against your title, and will either clear the title or pay the insured’s losses. For a single, one-time premium, your Pennsylvania title insurance policy will remain in effect as long as you retain interest in the property.
Why should you get your insurance from Society Hill Abstract?
Society Hill Abstract is independent from your realtor and your bank – our only interest is providing you with independent title evaluation of the property. As a 3rd party to the transaction, Society Hill is committed
to completing a thorough search and ensuring that everything is cleared before the transaction is finalized.
What is a title search?
A title search is a thorough review or examination of the public records that pertain to real property ownership and the rights/limitations of its use. The search period begins with the current owner(s) and extends back in
time for a period of 60 years (commonly referred to as the "chain of title"). All documents affecting the subject property are reviewed for accuracy, completeness and proper execution. Similarly, all owners of record during the
search period are indexed to determine their ownership interests, marital status and legal and mental capacity to enter into a contract to sell/buy real property. All conveyances must have been properly conducted and approved by the appropriate governmental departments.
What issues can a title search reveal?
A title search can show any number of title defects, liens, and other encumbrances and restrictions. Among these are unpaid taxes, unsatisfied mortgages, judgments against buyers/sellers and any restrictions or conditions
limiting the use of the land.
Are there any issues a title search may not reveal?
Yes. There are some "hidden hazards" that even the most diligent title search may not reveal. For instance, a previous owner could have incorrectly stated his marital status resulting in a possible claim by his legal spouse. Other hidden hazards include fraud, forgery, defective deeds, mental incompetence, confusion due to similar or identical names, and clerical errors in the City/County land records. These defects can arise after you've
purchased your home and can jeopardize your right to ownership in part or full.
What is a HUD-1 Settlement Statement?
This is a summary of the financial portion of the real estate transaction. The title company or closing agent is required by the Department of Housing & Urban Development to use the HUD-1 on virtually all one-family to four-family residential real estate transactions involving a lender. The statement will list the purchase price, loan amount, closing costs for the buyer and seller, and will show all sums being charged and disbursed to the parties involved. It also clearly summarizes the total amount due from the purchaser.
What does title insurance cost?
The cost varies, depending mainly on the value of your property. The important thing to remember is that you only pay once, then the coverage continues in effect for so long as you have an interest in covered property.
If I have a problem, will I lose my property to make a claim?
Not at all. At the mere hint of a claim adverse to your title, you should contact your title insurer or the agent who issued your policy. Title insurance includes coverage for legal expenses that may be necessary to investigate, litigate, or settle an adverse claim.
If my lender obtains title insurance, why do I need it?
The lender's policy covers only the amount of its loan, which is usually not the full property value. In the event of an adverse claim, the lender would ordinarily not be concerned unless its loan became non-performing
and the claim threatened the lender's ability to foreclose and recover its principal and interest. And in the event of a claim, there is no provision for payment of legal expenses for an uninsured party. When a loan policy is being
issued, the small additional expense of an owner's policy is a bargain.
What types of risks are covered by title insurance?
Standard Coverage addresses such risks as: forgery and impersonation; lack of competency, capacity, or legal authority of a party; deed not joined in by a necessary party (co-owner, heir, spouse, corporate officer, or business
partner); undisclosed (but recorded) prior mortgage or lien; undisclosed (but recorded) easement or use restriction; erroneous or inadequate legal descriptions; lack of a right of access; and deed not properly recorded.
It is an insurance policy that protects the insured against loss should the condition of title to the land be other than as insured. Unlike other types of insurance that offer protection against future possible occurrences, title
insurance offers protection against past occurrences which could result in a claim at a future date. Coverage continues in effect for so long as you have an interest in the covered property. Title insurance provides the insured with "peace of mind" in knowing that you are receiving good and marketable title to the real estate you are purchasing.
Why Do You Need Title Insurance?
Title insurance will protect possibly the most important investment you’ll ever make – your home! With a
Pennsylvania title insurance policy, you have an indemnity contract that will reimburse you for loss
in the case that someone asserts a claim against your property.
If the title has been searched, how can there still be a defect?
Your insurance is issued after thorough research of public records. But even the most careful examination can’t completely guarantee that no problems are present, even despite the professional knowledge and experience of the title examiner. Other problems may also exist that cannot be disclosed in public records.
What does title insurance protect me against?
- Undisclosed or missing heirs;
- Mistakes in recording legal documents;
- Fraud;
- Deeds by persons supposedly single, but in fact married;
- False impersonation of the true owner of the property;
- Forged deed, releases or wills, instruments executed under invalid or expired power of attorney;
- Deeds by minors;
- Liens for unpaid estate, inheritance, income of gift taxes.
Title insurance will protect you in defending against any legal action against your title, and will either clear the title or pay the insured’s losses. For a single, one-time premium, your Pennsylvania title insurance policy will remain in effect as long as you retain interest in the property.
Why should you get your insurance from Society Hill Abstract?
Society Hill Abstract is independent from your realtor and your bank – our only interest is providing you with independent title evaluation of the property. As a 3rd party to the transaction, Society Hill is committed
to completing a thorough search and ensuring that everything is cleared before the transaction is finalized.
What is a title search?
A title search is a thorough review or examination of the public records that pertain to real property ownership and the rights/limitations of its use. The search period begins with the current owner(s) and extends back in
time for a period of 60 years (commonly referred to as the "chain of title"). All documents affecting the subject property are reviewed for accuracy, completeness and proper execution. Similarly, all owners of record during the
search period are indexed to determine their ownership interests, marital status and legal and mental capacity to enter into a contract to sell/buy real property. All conveyances must have been properly conducted and approved by the appropriate governmental departments.
What issues can a title search reveal?
A title search can show any number of title defects, liens, and other encumbrances and restrictions. Among these are unpaid taxes, unsatisfied mortgages, judgments against buyers/sellers and any restrictions or conditions
limiting the use of the land.
Are there any issues a title search may not reveal?
Yes. There are some "hidden hazards" that even the most diligent title search may not reveal. For instance, a previous owner could have incorrectly stated his marital status resulting in a possible claim by his legal spouse. Other hidden hazards include fraud, forgery, defective deeds, mental incompetence, confusion due to similar or identical names, and clerical errors in the City/County land records. These defects can arise after you've
purchased your home and can jeopardize your right to ownership in part or full.
What is a HUD-1 Settlement Statement?
This is a summary of the financial portion of the real estate transaction. The title company or closing agent is required by the Department of Housing & Urban Development to use the HUD-1 on virtually all one-family to four-family residential real estate transactions involving a lender. The statement will list the purchase price, loan amount, closing costs for the buyer and seller, and will show all sums being charged and disbursed to the parties involved. It also clearly summarizes the total amount due from the purchaser.
What does title insurance cost?
The cost varies, depending mainly on the value of your property. The important thing to remember is that you only pay once, then the coverage continues in effect for so long as you have an interest in covered property.
If I have a problem, will I lose my property to make a claim?
Not at all. At the mere hint of a claim adverse to your title, you should contact your title insurer or the agent who issued your policy. Title insurance includes coverage for legal expenses that may be necessary to investigate, litigate, or settle an adverse claim.
If my lender obtains title insurance, why do I need it?
The lender's policy covers only the amount of its loan, which is usually not the full property value. In the event of an adverse claim, the lender would ordinarily not be concerned unless its loan became non-performing
and the claim threatened the lender's ability to foreclose and recover its principal and interest. And in the event of a claim, there is no provision for payment of legal expenses for an uninsured party. When a loan policy is being
issued, the small additional expense of an owner's policy is a bargain.
What types of risks are covered by title insurance?
Standard Coverage addresses such risks as: forgery and impersonation; lack of competency, capacity, or legal authority of a party; deed not joined in by a necessary party (co-owner, heir, spouse, corporate officer, or business
partner); undisclosed (but recorded) prior mortgage or lien; undisclosed (but recorded) easement or use restriction; erroneous or inadequate legal descriptions; lack of a right of access; and deed not properly recorded.