Is an Owners Title Insurance Policy Required in PA

Title insurance is a type of insurance that protects the tItle of your property. While it is not required by the law, it is typically required by third-party lenders in financed property transactions. The reason is simple, it ensures free and clear ownership by the new property owner – protecting the asset that is being financed. 

An Owner’s policy is not required, however there are things to consider when making this decision:

Prior Owner Liens and Judgements

Title insurance protects you in the event that there are unsatisfied liens or judgments against the property that were obligations incurred by a previous owner. 

Title insurance guarantees there are no unpaid debts, taxes or liens that could encumber your property purchase and provides a cumulative report of all of the recorded easements and rights of way that may affect the property. 

Others’ unknown interest in the property 

In the event, a person comes forward claiming to have an interest in the property you’ve purchased, title insurance protects your ownership as the rightful property owner. Examples could be heirs of a prior owner or former spouses with marital interests of a prior owner. Title insurance guarantees that the property is fully-vested in how you’ve taken title. 

Easements and Rights of way 

Title insurance protects you with a policy to hold ownership and interest in your property rights for any recorded instruments that may affect property ownership in and around your area. There may be deed restrictions and limitations on property usage that are outlined in the policy and insured by the underwriter of your title insurance.

There are many reasons to protect your most valuable asset with Title Insurance. 

If you are curious about how much Title Insurance costs, please check out our Title Insurance Calculator and then contact us today!