If you’re buying or refinancing a home in Pennsylvania, title insurance is likely part of the process. It protects you and your lender from issues with your property’s ownership, like liens or disputes. But what’s meant by an Endorsement 900 in connection with that title insurance? We’re going to break it down in simple terms and how Capstone Land Transfer can help you.
What is Title Insurance?
Title insurance is a one-time purchase at closing that safeguards your property’s title from problems like unpaid taxes or legal claims. It keeps your investment secure. Sometimes, you need extra coverage, and that’s where endorsements come in.
What is an Endorsement?
An endorsement is an add-on to your title insurance policy that covers specific risks not included in the standard policy. Although it’s optional, it can prevent costly surprises. Endorsement 900 is a common add-on in Pennsylvania.
What is Endorsement 900?
Endorsement 900, often called the “Environmental Protection Lien” endorsement or “ALTA Endorsement 8.1,” protects against losses from certain environmental liens on your property. Specifically, it covers:
- Environmental liens: These are claims placed on your property due to environmental issues, like cleanup costs for contamination (e.g., from a leaking underground storage tank).
- Priority of liens: It ensures that any environmental lien recorded after the policy date doesn’t take priority over your lender’s mortgage.
This endorsement is typically added to a lender’s title policy to protect against environmental claims that could affect the property’s value or the lender’s interest. It’s especially relevant for properties with a history of commercial or industrial use, where environmental risks may be higher. The cost is usually modest, around $50–$150, depending on the policy.
Why Consider Endorsement 900?
A standard title policy may not cover environmental liens, which can be expensive to resolve. Without Endorsement 900, your lender could face:
- Costs to address environmental cleanup demands.
- Losses if an environmental lien reduces the property’s value.
- Legal disputes over undisclosed environmental issues.
For a small fee, Endorsement 900 provides peace of mind, ensuring your lender is protected and your closing stays on track. While it’s mainly for the lender’s policy, it helps you by supporting a smooth transaction.
Do You Need Endorsement 900?
Endorsement 900 is most relevant for lender title policies, especially if:
- The property has a past industrial or commercial use.
- There’s a chance of environmental issues, like old fuel tanks or contaminated soil.
- Your lender requires extra assurance against environmental risks.
Your title company will check the property’s history to confirm eligibility for this endorsement, and Capstone Land Transfer makes the process easy and clear.
Why Choose Capstone Land Transfer?
At Capstone Land Transfer, we simplify title insurance so you can focus on your home purchase or refinance. Our professionals will walk you through options like Endorsement 900, ensuring you have the right coverage. Try our PA Title Insurance Calculator for a free, transparent quote tailored to your needs.
Whether you’re a first-time buyer or refinancing, we’re here to protect your investment. Have questions about Endorsement 900 or other title insurance options? Contact us today, and let’s secure your property with confidence!
