No. In the State of Pennsylvania it is not required for a Borrower’s and/or Buyer’s real estate transaction. Having an Attorney does remain an option if one wishes to have one review a contract or attend closing. Now, I’ve worked FOR Attorney’s and WITH many Attorney’s and while it may put a person’s mind at ease to have an Attorney represent them in most cases it is unnecessary. Title Insurance Agent’s are specifically trained for real estate transactions and unlike most Attorney’s who practice criminal defense, divorce, litigation, bankruptcy, etc, Title Agents only focus on one field. Obviously, I have a biased view but, I see Title Agent’s bringing more to the table regarding the subject property’s chain of title and all around abstract of title. Did I mention it’s usually cheaper?
July 1st, 2012 Pennsylvania Title Insurance rates officially go into effect. The old rates being overhauled was a long time in the making. Below is an example of the old rate schedule for transaction ranging from $0 – $30,000:
As you can see, there were 4 different categories of the one standard basic rate. There is the basic rate of insurance ($420.00), the reissue rate ($378.00) which was applicable to purchase and refinance transactions that had a policy issued within the past 10 years, a mortgage refinance rate ($302.40) which was applicable for a refinance transaction only if a policy was issued within the past 2-4 years and finally a further discount on a refinance ($264.60) if a policy was issued within 0-2 years. This rate schedule was sometimes confusing to consumers and to agents to determine the correct charge. New Horizon Abstract ALWAYS applied the lowest discounted rate where applicable.
The new rates that go into effect today have simplified this rate system. The example below shows coverage from $0 – $30,000, for comparison to the above old rate schedule:
So the new simplified schedule shows the elimination of the reduced 0-2 year and 2-4 year refinance reissue rates. The other notable change shows the “Basic” charge has changed to “Sale” and “Reissue” has changed to “Non-Sale”. It’s simple, if you are purchasing a property you get the “Sale” rate. If you refinance, you get the “Non-Sale” rate. The Endorsements and Closing Protection Letter rates have stayed the same.
The increase in the rates was something that needed to happen since the last revision of the rate schedule back in May of 2006. An increase in the rate collected is due to changes in the market. An increase in claims due to foreclosing lenders filing frivolous claims against underwriters in a desperate attempt to recoup money they were losing due to foreclosure proceedings. Sadly, this practice is still occurring around the country, as if big banks don’t have enough money already they need to pinch title insurance underwriters. Another reason to increase rates is that premiums for agents have fallen along with sales prices of homes.
The NEW RATE SCHEDULE can be found here: NEW RATE SCHEDULE 2012
The new rates do not reduce the level of competition among title insurance companies. If you are in need of a title quote check out our new form here: PA Title Quote Please feel free to contact us if you happen to have any questions regarding a title insurance quote 570-424-9705.
Are you looking for a Pennsylvania title insurance quote? Did your lender or Realtor tell you to select a title insurance company? Are you buying a home directly from a seller and need a settlement services company? You’re in luck! Fill out the form below and an email will be sent to our office. Please be sure to fill out the form as much as possible in order to get the most accurate quote.
Please call us at (570) 424.9705 if you happen to have any questions.
From now until September 30th, when a buyer selects New Horizon Abstract to preform their settlement we will offer a $50.00 document preparation to the sellers. That charge is strictly for preparing the Deed with regard to that specific transaction. That’s at least $75.00 cheaper than most other title companies! We understand that in the current real estate environment every penny counts.
Need a title quote? Go Here: Title Quote for buyers!
Interested in checking out homes for sale in the Poconos or Lehigh Valley? With interest rates again reaching record lows now is your opportunity to find the home of your dreams in the beautiful Pocono Mountains! There is no better time than now to begin your search. Call Gillian Peterson at Brokersrealty.com today! (570) 620-6999
Click here: Gillian Peterson to be redirected to her website and search the Pocono MLS. As the United States economy begins to rebound don’t expect interest rates to remain low and real estate inventory to remain high. Now is the time to get motivated, don’t miss out! She can help you whether you’re in the market for an investment property, vacation home, primary residence or REO property.
It’s important to understand when buying a for sale by owner property or FSBO, it is in your best interest to obtain title insurance on the property. When you buy a property directly from the seller they are technically not required to provide the buyer with a proper sellers disclosure or adequately disclose any encumbrances that may be on the subject property. Hiring a title insurance company to preform a title search, closing and subsequently commit to insure the property will help you protect your investment. Sellers often try to avoid paying commission on the sale of their property to a real estate company to try and net as much proceeds as possible. Especially, in the environment we are in today sellers now more than ever want to cut cost. Although, buyers of a FSBO property should not attempt to cut costs when purchasing. The last place a buyer wants to cut costs is on the title insurance policy. Having a third party involved in a transaction is sometimes what buyers and sellers hope to avoid however, a title insurance company is more concerned with the risk they are about to absorb so you can rest assured all outstanding judgments, liens and taxes will be taken care of at closing and the buyer takes possession of their dream home free and clear of all liens.
If you are buying a FSBO and are in need of a title insurance company look no further than New Horizon Abstract. We are a full licensed and insured title insurance company who specializes in helping for sale by owner transactions. Call us today at 570.424.9705 or complete this simple form for a free Pennsylvania title insurance quote.
In Pennsylvania the buyer or borrower (in the case of obtaining financing) has the right to select their own title insurance company. Not only is it important that you find a title company that will work with you but also for you. If you are in need of a title insurance quote go here: PA Title Insurance Quote.
Whether you’re buying a foreclosure, short sale, for sale by owner (FSBO) or simply a standard residential single family dwelling it’s of the utmost importance you have great communication with your title company. Keep in mind that sellers are bared from requiring you to use their affiliated title insurance company. According to Section 9 of the RESPA guidelines it,
…prohibits a seller from requiring the home buyer to use a particular title insurance company, either directly or indirectly, as a condition of sale. Buyers may sue a seller who violates this provision for an amount equal to three times all charges made for the title insurance. Source.
Also, in regard to Affiliated Business Arrangements (AfBA) those referring companies must give the AfBA disclosure at the time of refferal. AfBA are companies, in this instance title insurance companies, that have an ownership, financial or other form of beneficial interest to the real estate company, attorney or lender. Most real estate companies offer a one-stop form of shopping where they introduce a prospective buyer to a title company that resides in or near their office in order to accommodate the consumer with ease. While it may be true that the two companies work closely with each other, it is not always true that it is the cheapest option for the consumer. In most cases this is how the consumer gets overcharged.
Honestly, it is very simple to understand. If you are involved with three or more entities such as a law firm, title insurance company, lender and real estate company and they all have similar ownership interest you can probably bet you are being taken through the ringer. You also have to think about your best interest. Is your best interest at hand when everyone involved has a financial benefit? I’ve heard plenty of buyers say, “I don’t care, yeah sure we’ll use your title company”. Then I get a call when its a day before closing and its too late.
If you find yourself in the position to select a title insurance company and you’ve been referred directly or indirectly to a company and you are unsure about what to do please feel free to contact us today. We would be more than happy to assist you with a quote and a full description of what our title company can do for you, not to mention how we are different.
Are you looking for a title search or a title search vendor? New Horizon Abstract offers a wide range of title search products. We offer 60 year, 40 year, developer, and current owner searches. If you are purchasing a property and are obtaining title insurance through New Horizon Abstract you will not get charged for the title search, only the insurance premium.
A title search provides the chain of title to a property and reveals any “clouds” that may appear in the chain of title. “Clouds” are defects in the properties title and need to be rectified prior to conveying clear title. Some issues found in a title search may consist of: delinquent taxes, mistakes in legal descriptions, municipal liens, pending lawsuits, unsatisfied mortgages, outstanding interest, etc. New Horizon Abstract is committed to protecting your investment. We cannot properly insure a property that has a defect in the property that is why we do our best to resolve any outstanding issues.
Authors Note: I actually started in this field by title searching. I feel that the title search is the most important part of a transaction. It is the foundation to the transaction at hand. Every part after the title search is build on top of that foundation. If the title to the property being conveyed is not stable it needs to be fixed. It’s important that you have a competent title searcher research your property. If you’re interested in a search product feel free to contact us for pricing. Email New Horizon!
Well, you’ve come to the right place! If you are in the process of refinancing you may have been asked by your lender to find a title insurance company to preform the closing and issue title insurance on your property. Recent legislation requires all lenders provide to the borrower a list of title companies to choose from or simply suggest you select your own. To find out why it is so important to select your own title company visit this previous post: Right to Choose Title Company
New Horizon Abstract guarantees the lowest allowable title insurance rates available. This isn’t a sales pitch, it’s the truth! If you would like a title insurance quote go here: PA Title Insurance Quote and complete the form.
If during this process you have any questions please feel free to contact us and we would be more than happy to accommodate you. We also provide after hours settlement in the event you work late or may not be able to get of work on time. Again, please feel free to contact us with any questions. Thank you and hope to hear from you soon!