If you’re buying a home or refinancing in Pennsylvania, you’ve likely heard about title insurance. But terms like “Endorsement 100” might sound confusing if you’re new to the process. Don’t worry—we’re here to explain what an Endorsement 100 is in simple terms, why it matters, and how it can protect you. Plus, we’ll show you how Capstone Land Transfer can help you get the coverage you need.
What is Title Insurance?
Before diving into Endorsement 100, let’s quickly cover the basics. Title insurance protects you (and your lender) from issues with your property’s ownership, like liens, unpaid taxes, or disputes that could arise after you buy your home. It’s a one-time cost paid at closing, and it ensures your investment is safe.
What is an Endorsement?
An endorsement is an add-on to your title insurance policy that provides extra protection for specific risks not covered by a standard policy. Think of it like adding a feature to your car insurance for roadside assistance—it’s optional but can save you from headaches down the road. Endorsements vary by state and situation, and Endorsement 100 is one you might encounter in Pennsylvania.
What is Endorsement 100?
Endorsement 100, sometimes called the “Comprehensive Endorsement” or “ALTA Endorsement 100,” is designed to protect you from losses caused by certain violations of restrictive covenants or encumbrances on your property. Let’s break that down:
- Restrictive Covenants: These are rules set by a homeowners’ association (HOA), developer, or previous owner that limit how you can use your property. For example, a covenant might say you can’t build a shed or add a second story to your home.
- Encumbrances: These are issues like easements or agreements that affect your property’s use, such as a neighbor’s right to cross your land to access a road.
Endorsement 100 covers you if:
- A restrictive covenant is violated (e.g., a previous owner built a fence that breaks HOA rules, and you’re required to remove it).
- An existing structure on your property violates a covenant (e.g., a garage built too close to a property line).
- There’s an encumbrance that reduces your property’s value or limits its use (e.g., an easement that wasn’t disclosed).
This endorsement is especially helpful because it protects against issues that might not show up in a standard title search but could cause problems later.
Why Should You Consider Endorsement 100?
While a standard title insurance policy covers many risks, it doesn’t always include violations of restrictive covenants or certain encumbrances. Without Endorsement 100, you could face costly surprises, like:
- Paying to remove a structure that violates a covenant.
- Losing money if an easement limits how you can use your property.
- Legal fees to resolve disputes over covenant violations.
For a small additional fee (often $100–$200, depending on the policy), Endorsement 100 gives you peace of mind by covering these risks. It’s a smart choice, especially if you’re buying in a neighborhood with an HOA or in an area with complex property rules.
Is Endorsement 100 Right for You?
Not every property needs Endorsement 100, but it’s worth considering if:
- Your property is in a planned community with an HOA.
- There are known restrictive covenants or easements on the land.
- You want extra protection against unexpected issues that could affect your property’s value or use.
To get Endorsement 100, your title company will need to review the property’s covenants and confirm that no violations exist at the time of closing. This might involve a survey or additional research, but Capstone Land Transfer handles all the details for you.
Why Choose Capstone Land Transfer?
At Capstone Land Transfer, we make title insurance simple and stress-free. Our team will explain all your options, including endorsements like Endorsement 100, to ensure you have the right coverage for your property. We’ll also help you understand the costs upfront with our PA Title Insurance Calculator, so there are no surprises at closing.
Whether you’re a first-time homebuyer or refinancing, we’re here to protect your investment. Want to learn more about Endorsement 100 or other ways to safeguard your property? Contact us today or use our free title insurance calculator to get a personalized quote. Let’s secure your dream home together!
