Do I have to purchases title insurance?
Yes. In the Commonwealth of Pennsylvania, title insurance is required for all refinances and purchases where a mortgage company is involved. It is always recommended for all other types of purchases, such as cash purchases.

Why should I use a title insurance company?
A title insurance company provides purchasing information you can rely on, experience with historic matters of properties, the peace of mind and security of a licensed company.

When do I pay for title insurance?
A one-time fee is paid at the time of the closing. Unlike casualty insurance premiums, which are paid in continual installments, a title insurance premium is a flat fee paid one time only. This fee is regulated by the Division of Insurance. A policy of title insurance is like a legal agreement that has already been paid for. The title insurance company will provide legal defense against any challenges to an insured's title (depending, of course, upon the type of policy coverage) and will reimburse the insured financially for any losses as a result of hidden defects in ownership rights.

What are some of the reasons I might need title insurance?
Title insurance can protect you from a number of title defects. Here are some possible title defects that title insurance covers:

• Forged deeds, releases, or wills.
• Taxes, assessments or other municipal charges that went unpaid.
• False impersonation of the true owner of the property.
• Undisclosed or missing heirs.
• Instruments executed under invalid or expired powers of attorney.
• Misinterpretations of wills, or discovery of a later will after probate of first will.
• Deeds by minors, by persons of unsound mind, or by persons supposedly single but in fact married.
• Liens for unpaid estate, inheritance, income, or gift taxes.
• Mistakes in recording of legal documents, or deeds recorded but improperly indexed and therefore not found through a title search.
• Disputed release of prior mortgage or lien, as given under mistake or misunderstanding; or ineffective release of prior mortgage, as fraudulently obtained by predecessor in title.
• Undisclosed divorce of one who conveys as a sole heir of a deceased former spouse.
• Deed to or from a "corporation" before incorporation or after loss of corporate charter.
• Claims resulting from the use of "alias" or fictitious names by a predecessor in title.

What is a title search?
A title search is a detailed examination of the historical records concerning a property. These records include deeds, court records, property and name indexes, and many other documents. The purpose of the search is to verify the seller's right to transfer ownership and to discover any claims, defects, and other rights or burdens on the property.

Are there any problems that a title search cannot reveal?
Yes. There are "hidden hazards" that even the most diligent title search may never reveal. For instance, the previous owner could have incorrectly stated his marital status, resulting in a possible claim by his legal spouse. Other "hidden hazards" include fraud and forgery, defective deeds, mental incompetence, confusion due to similar or identical names and clerical errors in the records. These defects can arise after you've purchased your home and can jeopardize your right to ownership. This would be an example of why title insurance should always be purchased.