Pennsylvania Title Insurance...Part I...A Consumer Value!

Like many other real estate related factors, Title Insurance in Pennsylvania is a regionally peculiar commodity. Title insurance like real estate is a local phenomenon! Let me explain.

Although real estate transactions are federally regulated for consumer protection by RESPA, the Real Estate Settlement Procedures Act, nevertheless many details of a typical real estate transaction differ from state to state and even by custom, within a state.

So as not to confuse, but to clarify for the consumer purchasing real estate in Pennsylvania, most states have 'Insurance Commissions' who regulate rates and practices within a state! There are a few different title insurance models, but for the most part they are somewhat similar since underwriting is done through national title insurance companies!

Now let's discuss Title Insurance in Pennsylvania!

First of all, Pennsylvania is referred to as an 'all inclusive state'. That means that the title insurance rates that are regulated and approved by the State Insurance Commission and include the cost to conduct a title search, issue title insurance, and conduct the settlement or closing are contained in one fee! Hence 'all inclusive'. Other states may charge for services 'a la carte'...one fee for the search, one for title insurance, one for settlement services, etc. Of course the HUD1 fee for title insurance will vary with the purchase price, mortgage amount, or amount of insurance being issued.

And in addition there are discounted rates which may apply depending on how long it has been since prior title insurance was issued by any other title insurer. Our policy at Patriot Land Transfer is to pass on to the consumer the lowest fee for which they qualify! To charge less in order to obtain a title application, or to charge an amount exceeding the qualified rate, would be illegal, unethical, and in violation of state insurance regulations.

But Fran, you might ask, doesn't this make shopping for a title company in Pennsylvania impractical? No, not at all!

Just like mortgage rates may differ from company to company, but they won't differ by much because of stiff competition...the same is truer about title insurance...this creates an environment of true value when purchasing title insurance in Pennsylvania!

You see, because the rates should be about the same, the consumer needs to factor in other variables to select a title insurance provider in Pennsylvania! What are some of these variables and considerations?

I will discuss them in Part II of this series in a couple of days!!! Stay tuned!!!