Looking for a title insurance quote?
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.
It’s time to buy!
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.
Buying a FSBO
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.
Why choosing your own title company is important.
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.
570.424.9705
Title Searches are Important!
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!
Refinancing and in need of a Title Insurance Company?
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!
End of Summer Special!
From now until September 30th, when a buyer selects New Horizon Abstract to preform their settlement we will offer a $25.00 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.
Tax Prorations
I‘m often asked what are “prorations”. What tax prorations represent are credits from the buyer back to the seller for their applicable tax period responsiblity. Credits can also be given from the seller to the buyer in the event a tax period has ended and a bill has not yet been issued. Typically, County and Township tax bills are based on a calender year which runs from January 1st to December 31st. School taxes usually run on a fiscal year from July 1st to June 30th. Prorations can also be used for community, water, sewer and trash dues. Please see the example below:
In this specific example the seller had already paid the County/Township Taxes in full in the amount of $385.40, the School Tax in the amount of $1,113.35 and the 3rd quarter assessment which includes community dues, water and sewer in the amount of $413.25. So, being that the seller had paid those items in advance the buyer has to reimburse them for their responsibility. In the example above the buyer gave a credit to the seller in the amount of $162.61 for their responsibility which ran from July 31st (the day after closing) to January 1st. They reimbursed the seller $1,022.09 for the school taxes which ran from July 31st to July 1st (of the following year) and finally the buyer reimbursed the seller $278.49 from July 31st to October 1 for the 3rd quarter community assessments. It’s important to note that these credits are figured in with the buyers and sellers bottom line of the HUD-1 settlement statement and does not require additional checks at closing.
In the event the seller has not paid a bill in advance or the bill will be issued during the buyers ownership time period, the seller can give a proration credit to the buyer for their property tax responsibility, shown in the example below:
The County/Township tax bill in this example is $345.65. Closing is taking place on January 20th so the new County/Township tax bill has not been issued yet. The seller is actually crediting the buyer 21 days of their responsibility which comes to roughly $18.94. When that new County/Township bill is issued it is the full responsibility of the new owner being that they have already received the old owners credit.
If you would like to see a more in depth example of the HUD-1 Settlement Statement go here: HUD-1 Settlement Statement Explained
The role of a Settlement Agent
The role that a title insurance company plays in a real estate transaction is critical. Not only does the title insurance company have the responsibility of committing to insure the subject premise in the form of a title insurance policy but also, is accountable for all funds held in its possession with regard to the transaction.
At settlement the title company has to make sure that all lienable items are paid current, will be satisfied or will be collected from the appropriate party at closing. Lienable items include existing mortgages, judgments, Federal tax liens, Commonwealth liens, Municipal liens, corporate tax liens, PA child support arrears, property taxes, sewer assessments, water assessments, community dues, etc. Other items collected would include recording fees, title insurance, document preparation, transfer tax, community transfer fees, real estate commission, lender charges and homeowners insurance premium. Once all this information is collected it is put on the HUD-1 Settlement Statement and taken to closing.
It is the role of the settlement agent to then take in all the funds with regard to the transaction, place them in an escrow account and then disburse all of the funds to the appropriate parties. Note: the terms settlement agent, escrow agent and title agent are sometimes used interchangeably and refer to the actual company and or person representing the company to preform the actual real estate settlement. That agent is most likely the same as the title insurance company issuing the insurance on the subject property.
Closing Protection Letter
What is a closing protection letter (CPL)? When a transaction involves financing from a lender, the lender may feel reluctant to entrust an escrow agent who is underwritten by a title insurance company with closing proceeds. Also know as an insured closing letter and originally created by the American Land Title Association (ALTA), the CPL is provided to the lender and states that the title insurance company’s agent will properly handle all money and documents provided to them by the funding lender with regard to a specific transaction. It also states that the closing agent will comply with all closing instructions provided to them by the lender. Since title insurance agents are not directly employed by the title insurance company itself lenders are leery of trusting an agent with a large amount of money out of the possibility if there was some sort of loss the agent would not be able to cover it. In the event of mishandling of funds by the agent a claim could be brought against the insurance underwriter. When written the CPL is meant to only apply to the agent and lender in question. The CPL is not assignable. Currently, customers are charged a flat fee of $75.00 for the title insurance agent to issue this letter to their participating lender. There is no way around this fee. Below is an example of a standard closing protection letter issued in the state of Pennsylvania:
Sample Closing Protection Letter
(TITLE INSURANCE COMPANY)
Name and Address of Addressee Date: ____________
Re: Closing Protection Letter
Dear :
When title insurance of (Title Insurance Company) (the “Company”) is specified for your protection in connection with closings of real estate transactions in which you are to be the lessee or purchaser of an interest in land or a lender secured by a mortgage (including any other security instrument) of an interest in land, the Company, subject to the Conditions and Exclusions set forth below, hereby agrees to reimburse you for actual loss incurred by you in connection with such closings when conducted by an Issuing Agent (an agent authorized to issue title insurance for the Company) or an Approved Attorney (an attorney upon whose certification of title the Company issues title insurance) and when such loss arises out of:
- Failure of the Issuing Agent or Approved Attorney to comply with your written closing instructions to the extent that they relate to (a) the status of the title to said interest in land or the validity, enforceability and priority of the lien of said mortgage on said interest in land, including the obtaining of documents and the disbursement of funds necessary to establish such status of title or lien, or (b) the obtaining of any other document, specifically required by you, but not to the extent that said instructions require a determination of the validity, enforceability or effectiveness of such other document, or (c) the collection and payment of funds due you, or
- Fraud or dishonesty of the Issuing Agent or Approved Attorney in handling your funds or documents in connection with such closings.
If you are a lender protected under the foregoing paragraph, your borrower in connection with a loan secured by a mortgage on a one to four family dwelling shall be protected as if this letter were addressed to your borrower.
Conditions and Exclusions
- The Company will not be liable to you for loss arising out of:
- Failure of the Issuing Agent or Approved Attorney to comply with your closing instructions which require title insurance protection inconsistent with that set forth in the title insurance binder or commitment issued by the Company. Instructions which require the removal of specific exceptions to title or compliance with the requirements contained in said binder or commitment shall not be deemed to be inconsistent.
- Loss or impairment of your funds in the course of collection or while on deposit with a bank due to bank failure, insolvency or suspension, except as shall result from failure of the Issuing Agent or the Approved Attorney to comply with your written closing instructions to deposit the funds in a bank which you designated by name.
- Mechanics’ and materialmen’s liens in connection with your purchase or lease or construction loan transactions, except to the extent that protection against such liens is afforded by a title insurance binder, commitment or policy of the Company.
- If the closing is to be conducted by an Issuing Agent or Approved Attorney, a title insurance binder or commitment for the issuance of a policy of title insurance of the Company must have been received by you prior to the transmission of your final closing instructions to the Issuing Agent or Approved Attorney.
- When the Company shall have reimbursed you pursuant to this letter, it shall be subrogated to all rights and remedies which you would have had against any person or property had you not been so reimbursed. Liability of the Company for such reimbursement shall be reduced to the extent that you have knowingly and voluntarily impaired the value of such right of subrogation.
- Any liability of the Company for loss incurred by you in connection with closings of real estate transactions by an Issuing Agent or Approved Attorney shall be limited to the protection provided by this letter. However, this letter shall not affect the protection afforded by a title insurance binder, commitment or policy of the Company.
- Claims shall be made promptly to the Company at its principal office at: (Address) When the failure to give prompt notice shall prejudice the Company, then liability of the Company hereunder shall be reduced to the extent of such prejudice.
- The protection herein offered does not extend to real property transactions in the states of Florida, Iowa, New Jersey, Nebraska, Kansas, New Mexico, New York and Texas. Insured closing letters have been regulated under the laws of those states.
- Notwithstanding your instructions to the Issuing Agent or Approved Attorney, nothing herein shall be construed to impose any liability on the Company on account of any consumer credit protection, truth-in-lending, or similar law, or the provisions of the Flood Disaster Protection Act of 1973.
The protection herein offered will be effective upon receipt by the Company of your acceptance in writing, which may be made on the enclosed copy hereof and will continue until cancelled by written notice from the Company.
Any previous insured closing service letter or similar agreement is hereby cancelled except as to closings of your real estate transactions regarding which you have previously sent or within 30 days hereafter send written closing instructions to the Issuing Agent or Approved Attorney.
(TITLE INSURANCE COMPANY)
BY:_____________________________
______________________________
(Title)
Accepted: ____________________________, 19______
_____________________________
By:__________________________
(Title)
(The name of a particular issuing agent or approved attorney may be inserted in lieu of reference to Issuing Agent or Approved Attorney contained in this letter and the words “Underwritten Title Company” may be inserted in lieu of Issuing Agent)
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