Do you need Title Insurance when Buying a Home in the Lehigh Valley?
Title Insurance is a one-time charge the home buyer pays for (at the closing) and it protects the buyer for as long as they own the property.
Title Insurance not-only protects the home buyer but is REQUIRED when obtaining a mortgage to purchase a home in the Lehigh Valley.
Title Insurance Protects the Lehigh Valley Home Buyer from:
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Forged deeds, releases and other documents
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False impersonation of the true owner of the property by the seller or other persons previously on the title
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Deeds by persons of unsound mind
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Deeds by minors
A Title Search is done on all of the Lehigh Valley Public Records for the Property and the following should be checked (may differ between title companies):
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Mechanics Liens against the property
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Has the HOA filed a lien for non-payment
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Does the "seller" actually have the rights to sell the property
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Are there any City, County, or State liens against the property
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Are there any Federal, State, or Local income tax liens
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Are there any easements on the property
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Lawsuits or bankruptcies against the property
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Any questionable transactions
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If seller is deceased who has authority to sell property
Enhanced Title Insurance versus Standard Title Insurance
As a result of the number of distressed properties on the market (foreclosure and short sale), Title Companies are now offering Enhanced Title Insurance.
Here is a table comparing Standard Title Insurance and Enhanced Titile Insurance.
|
Coverage Item |
Standard |
Emhanced |
|
Any defect in title at time of purchase |
Yes |
Yes |
|
Prior Recorded mortgages, judgements, and other liens |
Yes |
Yes |
|
Title Vested in someone other than seller |
Yes |
Yes |
|
Unmarketability of title |
Yes |
Yes |
|
Right of pedestrian access to land |
Yes |
Yes |
|
Building permit violations |
No |
Yes |
|
Enhanced access coverage/right of vehicular access to land |
No |
Yes |
|
Subdivision coverage |
No |
Yes |
|
Violations of restrictions on land |
No |
Yes |
|
Coverage extended to Living Trusts |
No |
Yes |
|
Coverage for post-issuance enchroachment |
No |
Yes |
|
Post-issuance forgery protection |
No |
Yes |
|
Five Year inflation protection/automatic increase in coverage |
No |
Yes |
|
This chart was provided by Premier Land Transfer |
How Much Is Title Insurance?
In Pennsylvania, the cost for Tiltle Insurance is governed by the State and is based on the purchase price of the home.
Here are some examples of Lehigh Valley Title Insurance charges based on the Purchase Price.
|
Purchase Price |
Standard Coverage |
Enhanced Coverage |
|
$50,000 |
$625.00 |
$688.00 |
|
$100,000 |
$900.00 |
$990.00 |
|
$150,000 |
$1150.00 |
$1265.00 |
|
$200,000 |
$1400.00 |
$1540.00 |
|
$250,000 |
$1650.00 |
$1815.00 |
|
$300,000 |
$1900.00 |
$2090.00 |
|
$400,000 |
$2400.00 |
$2640.00 |
|
$500,000 |
$2900.00 |
$3190.00 |
|
$600,000 |
$3300.00 |
$3630.00 |
Once the buyer determines the price they wish to offer on a home, a GFE (Good Faith Estimate) can be done to give a more accurate idea of the closing costs associated with the property.
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