After you have decided to sell your home in Philadelphia and have negotiated the contract with your real estate agent, the next step is to select a Pennsylvania title insurance company. This will allow you to go through with the transaction, close the deal and ensure the property is insured from any title issues that might have come up before your possession.
Title Insurance Philadelphia
Title insurance is an important item to keep in mind. It is an upfront, one-time cost, but many homebuyers might not even be aware of what title insurance is or the reason they have to buy it. This insurance is a big part of the closing costs that any buyer will have to pay, so it’s important to be well-informed.
What is title insurance, and why should you get it?
Title insurance protects the property owner and any mortgages against any future losses that might occur from liens, title defects or anything else that might have existed before the closing. Before you bought your house, it was probably owned by another entity or person. The land definitely had to have at least one previous owner. Along the way, someone might not have paid their taxes on the real estate or didn’t pay the contractor—this could have resulted in a lien on the real estate title belonging to the property.
Worse still, there could have been a fraudulent transfer of the title. If this happens, title insurance is there to cover the insured person for any claims that might appear from past mistakes. Be sure you check with your title agent in order to understand any potential issues that might arise.
Is title insurance a requirement in Philadelphia?
If you are purchasing a home in Philly with an alternative loan instrument or a mortgage, the lender will definitely need you to show that you purchased title insurance. This is because title insurance limits any potential risk since the home will serve as collateral for the loan that is made by the bank. If you are buying a property entirely in cash, then you may be able to waive the title insurance.
How do you get title insurance in Philadelphia?
Once you have finished the negotiating process of selling your home, you can get a fully executed offer agreement that has been signed both by the seller and by you. During this time, you will be considered to be under agreement. Then, the real estate agent will send the agreement to the lender and also the title insurance company. If you are getting a mortgage, the mortgage underwriting process will begin here. Finally, the title company will do title searches to prepare for the settlement of services.
How much does title insurance cost?
There are a number of factors that go into the calculation of title insurance rates. Typically, it will cost between 0.5 percent and 0.75 percent of the purchase price. For example, on an $800,000 purchase, you will likely be paying between $4,000 and $6,000 for a single premium.
As an example, look below for the breakdown on prices for an $800,000 purchase price with a 20 percent down payment:
- Purchase price: $800,000
- Down payment: $160,000
- Title insurance: $4,000 to $6,000
The closing costs in Philadelphia are sure to add up due to city and state transfer taxes as well as title insurance. There are a few ways to reduce the fees, however. Some real estate brokerages in Philly will charge both buyer and seller commissions that will need to be paid during closing. If you are thinkin of how to sell my house fast, we can help, you can go through this process without any fees or commissions. Through this service, you can save more money than you otherwise might while also enjoying the efficiency of working with skilled and knowledgeable professionals who are committed to getting the process done quickly. To get started, get in touch with FastCashAnyHome today.
