Frequently Asked Questions
WHAT IS A TITLE?
A title is the evidence that a person has to the ownership and possession of land. It is possible that someone other than the owner has a legal right to the property. If that right can be established, this person can claim the property outright or make demands on the owner as to its use.
WHY SHOULD I PURCHASE TITLE INSURANCE?
Title insurance is a means of protecting yourself from financial loss in the event that problems develop regarding the rights to ownership of your property. There may be hidden title defects that even the most careful title search will not reveal. In addition to protection from financial loss, title insurance pays the cost of defending against any covered claim.
AM I REQUIRED TO PURCHASE TITLE INSURANCE?
If you are taking out a mortgage, your lender will likely require that you purchase a Lender’s policy. This policy only insures that the financial institution has a valid, enforceable lien on the property. Most lenders require this type of insurance and typically require the borrower to pay for it.
An Owner's Policy on the other hand is designed to protect you from title defects that existed prior to the issue date of your policy. Title troubles, such as improper estate proceedings or pending legal action, could put your equity at serious risk. If a valid claim is filed, in addition to financial loss up to the face amount of the policy, your owner's title policy covers the full cost of any legal defense of your title. While it is highly recommended, you are not required to purchase an owner’s policy. If you choose to waive your right to title insurance, you will need to sign a waiver at settlement.
WHAT IS THE TITLE PROCESS?
When you select Patriot Closing as your title company and we receive notice of your settlement date we will order the title search. When the title search report comes back, we will email you a copy of your Title Commitment to review. If you are taking out a mortgage, we will also send the Commitment to your lender.
Closer to settlement, we will email your Settlement Statement which will provide the final amount due at settlement as well as a breakdown of all fees. If applicable, your lender will need to provide closing instructions in order for us to create the Settlement Statement. A title agent will be present the day of settlement to go over all documentation.
WHAT IS THE COST OF TITLE INSURANCE?
The amount of your title insurance premium is based on the final sale price of your home. These rates are regulated by the state of Pennsylvania. This is a one-time fee paid at settlement.
WHAT IS A TITLE COMMITMENT?
A title commitment is the document by which a title insurer discloses to all parties connected with a particular real estate transaction all the liens, defects, burdens and obligations that affect the subject property. It lists all requirements that must be met before a title company can insure a title as “marketable” or a loan as having a certain priority.
WHEN WILL I RECEIVE MY FINAL HUD-1 SETTLEMENT STATEMENT?
We will do our best to provide your Settlement Statement one to two weeks prior to closing. However, if you are taking out a mortgage, timing will depend on when we receive the closing instructions from your lender.