Why Obtain Title Insurance?

An experienced Pennsylvania title agent, James J. Vassallo Jr. serves as president of Leader Settlement Services, a growing full-service title company that operates in 30 states. James J. Vassallo Jr. performs title searches to determine land ownership and produces insurance policies.

Before a real estate loan closes, a title search will reveal potential title defects, such as liens, encumbrances, or easements that may affect a lender or buyer’s property rights. A title insurance policy incurs a one-time charge and protects the lender in case a third-party claim on the property arises after closing. For example, a construction company could make a claim on the property for unpaid work under a previous owner. Title insurance is required for the lender but only recommended for the owner.

For the owner, a title insurance policy covers costs associated with paying off a previously unknown lien or hiring an attorney for a lawsuit. Essentially, title insurance covers issues that existed before the home’s purchase and would have affected the purchasing decision, as opposed to new issues caused by the owner’s actions.