Commonly Asked Title Insurance Questions
Whether you’re a realtor, a lender, or a homebuyer, we’ve basically been asked it all when it comes to title insurance. This ‘Commonly Asked Title Insurance Questions’ post is courtesy of our Madison North locations in Pennsylvania (Selinsgrove, Lewisburg, Lewistown and Williamsport) – and what they frequently get asked.
These questions range from the cost of title insurance to what does a title insurance policy cover and more. This is a great article for not only a homebuyer but also for a real estate agent and/or a lender to have on hand.
Even though our Madison Settlements locations span from Maryland to Michigan to Pennsylvania and now to Texas, keep in mind that we do service virtually almost every state in the U.S.
Commonly Asked Title Insurance Questions #1 – What Are the Prices for Our Services?
The following costs for our services come from our MSS North locations. These prices may vary with other locations, so keep that in mind when factoring in the costs of the following services. Also feel free to contact a location near you and ask for pricing details!
- Title Insurance Premium: This is based solely on the purchase price of the home as well as the loan amount. Title insurance is a one-time fee that typically costs the homebuyer an average of 0.5% of the home’s purchase price.
- Notary Fee: Our typical quote for a Notary fee ranges from $20 to $60. However, this fee may have a different cost if there is a cash loan, two loans, a regular sale file with one loan – as these all differ compared to a typical homebuying loan.
- There is also an electronic processing fee of $50.
- Standard Endorsements: Lenders may require this and the typical range for this is $300 to $450.
- A CPL is $125 and a potential lender fee (unless the lender doesn’t require one).
- Recording Fees: These are based on the county the property is situated in.
- A 1% transfer tax for both sides unless otherwise agreed upon in the sales agreement.
This can seem like a lot. But just think, once the professionals take care of all of this behind-the-scenes work, your home is forever yours.
Commonly Asked Title Insurance Questions #2 – How Fast Is Closing?
How fast we can close on a home depends on a few things. Essentially, once the lender/real estate agents have the title binder or commitment from a title company, the title company then waits for the lender and/or agent to give the go-ahead to get the closing process finalized. Here are some instances of what needs to be done to close as swiftly and properly as possible:
- The county where the home is being purchased in as well as how busy the title company is. Our locations strive for a rapid turnaround while still ensuring correct results during the entire process.
- Inspections the agents or lender(s) need.
- The appraisal processes.
- Then the underwriting and clear to close process.
Frequently Asked Title Insurance Question #3 – What Does Title Insurance Cover?
Even though we have covered this topic in the past, we still get this question a lot. In short, here is everything that title insurance covers:
- Title insurance protects the owner and lender in case anything comes back against the property that may have been missed in the past. Ex: Judgments, liens, delinquent taxes, etc.
- Standard title insurance: Covers anything that can be found in a courthouse/prothonotary search. (Prothonotary is a constitutional office in the Commonwealth of PA)
- Enhanced title insurance: Covers municipalities that are not searchable in the courthouse (water/sewer/electric liens). Enhanced title insurance cannot be purchased on land only due to those types of liens just listed.
FAQ #4 – Why Does a Spouse Not on the Title Have to Sign Off on the Deed?
A spouse in Pennsylvania has marital rights to any property owned by their spouse even if they were never a deeded owner. We can sometimes accept a spousal waiver if it is dire. *If you are purchasing property outside of Pennsylvania, contact our National office for the answer to this question.*
Commonly Asked Title Insurance Question #5 – Do Sellers Have to Attend the Closing?
he sellers do not specifically have to attend the closing. We can meet with them in advance to execute the deeds and title documents. We can even ship them out with a shipping label back to us. If we have the original signed and notarized deed and title documents before closing, sellers do not need to be present. But if there are no agents involved or an attorney for the seller to authorize to sign the settlement sheets (CD/ALTA), they must have the ability to print, sign and at least scan back those documents. If unable to sign and provide the CD and ALTA when they are finalized, they need to come to closing.
Conclusion
And there you have it. Our top and most asked questions concerning title insurance. Remember, each state operates a little differently, so contact your local Madison Settlements office today and our amazing team will answer all your title or settlement questions!