The world of real estate and the products you need to navigate without an expert’s guidance can seem confusing, even overwhelming. If you’re looking to buy or sell commercial real estate, you might wonder if you should work with a title company to help ensure that the deal goes smoothly from start to finish. This article will explain everything you need to know about commercial title insurance and how this type of coverage can protect your investment and peace of mind when buying or selling commercial property.
What is a Commercial Title Insurance?
Title insurance protects your interest in a property by covering your financial risk of loss due to issues with the title. Title insurance policies differ in scope, coverage, and price depending on the type of property you’re insuring and where it’s located. If you’re wondering whether or not you need commercial title insurance and what to look out for when shopping around, here are a few things that explain what you need to know about commercial title insurance.
Type of Title Insurance
When purchasing a commercial property, the lender and buyer should each purchase a separate policy to insure the title of the property. Many commercial lenders are required to take out title insurance in order to get loans; just in case there are problems with the title, the lender is still protected from any financial risk. Second, the buyer of a property should also purchase insurance from a title service. Separate from the loan offered by the lender, this policy will protect the business financially in the event of title problems.
Title Search
Before you make any major purchase, like a piece of real estate or a vehicle, have your title searched by an escrow agent. A title search involves verifying that there are no liens, such as mortgages or unpaid loans, on your property. Your title company will walk you through all of your options and ensure you make an informed decision before taking action.
Title Commercial Insurance is Paid Once
The title insurance policy is generally a once-and-done payment, so it isn’t something you need to continue paying for month after month. The escrow agency will hold onto the funds while you're in the process of purchasing the property. Before signing the closing documents, the title insurance company will have been paid.
It Protects Your Investment
An escrow agency or title company offers a variety of title services for your commercial real estate. Commercial title insurance protects both the owner and the lender as long as you own the property, or, in the case of the lender, as long as there is a loan out on the property.
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When you purchase a home with a mortgage, there are still a number of costs you need to pay up-front. One of these costs is the down payment on the loan. The other costs all fall under the umbrella of "closing costs." These are various fees you pay to the bank, the attorney, your title settlement service, and other individuals and companies involved in the real estate transaction.
It's important to be an informed buyer, and part of being an informed buyer is knowing where various closing costs come from. Here are the typical closing costs you'll pay when buying a home.
Loan Application Fee
This is a fee is paid to the bank to cover the costs associated with you applying for a loan.
Escrow Fee
At closing, you will generally be asked to pay several months' worth of taxes and mortgage insurance payments into an escrow fund. This is bundled into the escrow fee. The funds will be kept in your escrow fund once the loan closes.
Lender's Title Insurance Fee
Title insurance protects the lender if any defects in the title arise after closing. The fee for this insurance is paid to a real estate title company.
Owner's Title Insurance Fee
You have the option of purchasing title insurance to protect you, the new owner of the home, from defects in the title. If you want this insurance, you'll pay for it during closing.
Credit Report Fee
The bank will need to access your credit report in order to make you a loan offer. The fee for this credit report will be passed on to you.
Private Mortgage Insurance Premium (FHA Insurance Premium)
If your down payment is less than 20% of the home cost, you'll generally be required to have private mortgage insurance. The first month's premium is typically due at closing.
HOA Transfer Fee
If your new home is a part of a homeowner's association, you'll generally pay an HOA transfer fee to put the home into your name with the association.
Prepaid Daily Interest
Interest will accrue on your mortgage between your closing date and the first mortgage payment. You'll pay this interest at closing as a fee called "prepaid daily interest."
Survey and Recording Fee
The survey fee goes to the company that checks and establishes the property's boundaries. A recording fee goes to the county clerk's office for the processing of these records.
Title Search Fee
The title search will reveal any liens on the property or other possible discrepancies with the title. The fee for this service is paid to your PA settlement service at closing.
Transfer Fee
Many municipalities charge a transfer fee or transfer tax when ownership of a property changes. Costs vary widely from town to town and county to county.
Now that you understand these closing costs, you can enter the next real estate transaction as an informed buyer. If you're looking for a "title search company near me" to work with you through the process, contact Heritage Land Transfer. We have a great network of real estate professionals to hold your hand through it. If you need a real estate escrow company, know that we offer escrow services too.
Our guaranteed lowest rates for title insurance, and our customer-centric, efficient title search and closing process helps our client reduce a lot of the stress and risk associated with real estate transactions. Contact us today.
This blog was originally posted on https://landtransfer.com/understanding-mortgage-closing-costs/
Most people only purchase title insurance a couple of times in their life. So it's not at all unusual for customers to have questions about this. We believe that all title service customers deserve to have a thorough understanding of what they're buying and why it is important. As such, we are always happy to answer our customers' questions about title insurance. Below, you'll find some of the most common questions we receive — along with their answers.
What are the two types of title insurance?
The first type of title insurance is owner's title insurance, which protects your interest in the home as its owner. The second type is lender's title insurance, which protects the bank that holds your mortgage. Lender's title insurance is required in most cases. Owner's title insurance is not always required, but it is highly recommended. The best title insurance companies will talk with you about your risk and help you decide whether an owner's policy is needed.
Do you need owner's title insurance and homeowners insurance?
Sometimes customers assume that if they have homeowners insurance, they don't need owner's title insurance. However, both types of insurance are important because they cover different risks.
Homeowners insurance applies to your home and physical property. The owner's title insurance protects the deed to your property and your actual ownership of the property. If any liens against the property or other defects in the deed were to be discovered after closing, title insurance would protect your ownership of the home. It would also pay for any fees or costs related to the discovery.
Do you need title insurance when you refinance?
When you refinance a mortgage, you do still need a lender's title insurance policy. This policy protects the bank from any unknown liens or judgments against the property.
Do you need title insurance on new construction?
In most cases, you should still purchase title insurance when buying new construction. Even though the building is new, the land is not. The land will have had at least one owner before you. In this case, title insurance will protect you and the lender against any potential defects in the title for the land.
How do you pay for title insurance?
Title insurance is typically paid for during closing. If you close with a title company in Pennsylvania, the fee for title insurance is often wrapped up in a closing fee that also includes the title search and the settlement fee. The fee for title insurance is a one-time charge.
Hopefully, these questions and answers have cleared up some of the queries you had about title services. If you're looking for a title company and an escrow agency, contact Heritage Land Transfer. With more than 30 years of experience, our award-winning team of professionals always put the clients' needs first. We partner with industry leaders and employ our own team of in-house attorneys to ensure a smooth, worry-free closing process.
This blog was originally posted on https://landtransfer.com/title-insurance-faqs-everything-you-should-know/
As you go about buying real estate, you're likely to encounter some less-familiar terms. One of these terms is "title endorsement." Your real estate agent may mention title endorsement, or you might see it listed on an estimate from your title company. In either case, it's a good idea to understand this term so you have a better idea of what you're paying for and why you need it.
So, without further ado, here's an explanation of the title service known as title endorsement, along with a look at the different types of title endorsements.
What Is Title Endorsement?
Perhaps you're familiar with title insurance. It is a type of insurance that protects the buyer or the lender from any liens or claims against the title that may be revealed after real estate is purchased. Title endorsement basically takes things one step further from title insurance. It protects you against specific types of issues with your property's title.
Title endorsement is not necessary for every real estate transaction. However, it can be a very smart buy in certain situations. If you or your attorney have any reason to suspect there may be a specific issue with a title, you can purchase a title endorsement against that issue.
What Are The Different Types of Title Endorsement?
There are many, many different types of title endorsements. Those most commonly used types are explained below.
Survey Coverage
Survey coverage protects your interests should there be a discrepancy between the land identified on the title and the land that's listed on an insurance policy. This is helpful coverage when buying large tracts of land with poorly defined boundaries.
Minerals and Substances
Does someone have an easement to access minerals, oil, or other substances located beneath your land? A title endorsement can protect you should these parties cause damage to your land when adhering to the terms of the easement.
Zoning
A zoning endorsement can protect you if the local jurisdiction changes the zoning in a way that keeps you from using your property in the way you intended. This is a common title endorsement for business owners.
Access
If your property does not directly border a public street, such as if the driveway to access your home is on a neighbor's land, you will want an access endorsement. It protects you from losing that pathway to access your land.
Easements
Perhaps a neighbor has an easement allowing them to use your driveway to access your land. Or, perhaps the power company has an easement to access lines on your land. An easement endorsement, drawn up by a title company Pennsylvania residents trust, can protect you in this case.
Could you benefit from having a title endorsement drawn up as a part of your real estate purchase? Reach out to your Philadelphia title company for their expert advice. Heritage Land Transfer would be happy to help. We're a full-service title company and escrow agency, and we always put customers first.
Our team of expert professionals provides a seamless title transfer experience, guaranteed lowest rates, and the fastest closings. We believe in making the real estate transaction a happy experience for our clients and partners alike, and to that end, we do what it takes, including traveling to their preferred locations.
This blog was originally posted on https://landtransfer.com/title-endorsements-the-concept-and-the-types-explained/
Buying commercial property always comes with some risks. One of those risks can be related to the property title. Commercial title histories can be long and complex, and it's not terribly rare for previous liens or claims to a title to show up. The good news is that commercial title insurance from a title company can protect you and your lender from these risks. Here are a few key things you should know about commercial title insurance. 1. There Are Two Key Types of Title Insurance When you're purchasing a commercial property, there are two separate entities that should take out title insurance policies. The first is your lender. In fact, most lenders are required to have title insurance in order to hold the loan on a commercial space. This title insurance ensures that if there is an issue with the title, the lender is protected from financial risk. The second party that should buy insurance from a title service is the buyer. In commercial transactions, this is generally the LLC, sole proprietorship, or corporation that is buying the property. This policy is separate from the one held by the lender, and it protects the business financially should any title problems come to light. 2. Title Searches Don't Negate the Need for Insurance Before you buy a piece of commercial real estate, you should have a title company conduct a title search. This search should turn up any liens or claims to the title prior to purchase. However, the title search process can occasionally miss liens. As such, a title search is not a replacement for title insurance. Even the best title company Pennsylvania has to offer may not be able to uncover everything in the search process, and insurance protects you from this possibility. 3. Commercial Title Insurance Is Paid For Once Commercial title insurance is not something you or your business need to pay for month after month. Rather, you pay for this insurance via a one-time fee due at closing. The escrow agency will typically hold the funds while you're in the process of purchasing the real estate. Then, when you sign the closing documents, the title insurance company will be paid for the policy or policies. 4. Title Insurance Offers Continued Protection Policies to protect both you and the lender last for as long as you own the property. Or, in the case of the lender, they last as long as there's a loan out on the property. So, if an issue with the title comes up in 5 years, you're protected. If an issue arises in 15 years, you are still protected. It's nice to get such long-lasting risk reduction for a one-time payment at closing. Commercial property can be a sizable investment, so it is worth protecting your investment. Your lender will likely require title insurance, and you should strongly consider taking out a policy to protect your business, too. Contact Heritage Land Transfer to learn more about our title services. Our stellar customer service, unmatched resources, and guaranteed lowest rates are brought to you by an award winning team of professionals, dedicated to helping our clients and partners have the most seamless transactions.
This blog was originally posted on https://landtransfer.com/4-things-you-need-to-know-about-commercial-title-insurance/
Title search and title transfer are two very important parts of a real estate transaction. It's important to choose a title company Pennsylvania residents can trust in order to handle these processes. At Heritage Land Transfer, we are proud to be a step above the competition. We are confident we can handle your transaction with ease, but don't just take our word for it. Here are a few key reasons to choose us as your title company.
1. 20-Minute Closings
Closing on a real estate deal is not anyone's idea of a good time. As such, you probably don't want to be sitting around the closing table and signing paperwork for any longer than is necessary. At Heritage Land Transfer, we can deliver 20-minute closings when time is of the essence. This allows you to finish and get on with your day, whether that means heading back to work or going home to see your family.
2. In-Home and Virtual Closings
Do you have kids you don't want to leave with a sitter? Perhaps your car is in the shop. If you can't make it to our offices, we can come to you. We offer in-home closings to make things simpler for our customers, whatever their needs may be.
Maybe you got called away on travel, or perhaps you're selling a home remotely. In cases like these, we can provide title services and closings virtually and securely, using our cutting-edge software.
3. In-House Attorneys
Many title companies rely on outside attorneys. This slows down the title search process and can lead to longer closing times. At Heritage Land Transfer, we employ our own attorneys in-house. This allows us to provide our customers with more comprehensive services, and it also allows us to work faster than our competition.
4. Client-Focused Approach
Every client is unique. As we work with you to facilitate your real estate transaction, we get to know you personally so that we are better able to understand and fulfill your unique needs.
We have in-house interpreters to help us communicate clearly when a language barrier comes into play, and we contract with additional, outside translators as needed, too. We'll keep you informed every step of the way as we conduct your title search, prepare your settlement, and ready your account for closing.
5. Community Involvement
At Heritage Land Transfer, we are proud to be a part of the communities we serve. Our employees can spend up to 20 paid hours each year volunteering in the community. We also offer scholarship programs to help support our youth.
If you're looking for a title company Philadelphia is proud to call its own, then Heritage Land Transfer is the choice. We offer a wide range of services, from title transfer to contingency resolution, and we are also an escrow agency.
Contact us to learn more about us and our dedication to putting clients first.
This blog was originally posted on https://landtransfer.com/why-choose-heritage-land-transfer-company-inc-as-your-title-company/
Herman Melville once wrote, “We cannot live only for ourselves. A thousand fibers connect us with our fellow men.” At Heritage Land Transfer, we are motivated by this quote. We think it speaks powerfully to the importance of community. Within a community, we are all connected; our actions impact one another.
Because we care about our community and about the success of each of its members, we do our very best to give back. It's simply a part of our culture here at Heritage Land Transfer. We see ourselves not as an island, but as an interwoven part of the communities we live in and serve, and we hope our actions as a PA settlement service reflect that.
Scholarship Program
One of the ways our title insurance agency gives back to the community is through our scholarship program. By awarding scholarship funds to students, we are investing in their future, and thereby the future of our community. Our scholarships have helped make college and higher education possible for numerous young folks.
A little help at the start of one's education can make all the difference in that individual's future. Scholarship funds can help students reach higher, achieve more, and ultimately enjoy greater economic success in adulthood.
Contributing to the education of others benefits the community as a whole, too. Better education means we all have access to more knowledgeable, experienced professionals. Education equips today's youth to be the problem-solvers of the future, and we're happy to encourage that growth through our scholarships. As a trusted Philadelphia real estate title company, we're proud to do our part.
Volunteer Work
At Heritage Land Transfer, we truly have some of the kindest, most dedicated employees. Not only do they do an excellent job at offering title and escrow services, but they are dedicated volunteers, too.
Each of our employees has the option of spending up to 20 paid hours per year volunteering in the community. We've had employees work on community gardening projects, and others who have worked with the underserved.
Through volunteer work, our employees not only help solve problems within the community; they also remain more aware and involved of what's going on in the community around them. In working with others, they learn more about those peoples' needs, which enables them to better serve those individuals in their profession and in their personal life.
At Heritage Land Transfer, we are all about the people. Our client-first mentality extends beyond the workplace and into our scholarship and volunteer programs. IN this season of giving, we encourage each and every one of you to also consider what more you can do to give back. Communities are for all of us, and the more we contribute, the better we are for it.
Contact us to learn more about our title insurance and settlement services.
This blog was originally posted on https://landtransfer.com/heritage-cares-we-are-dedicated-to-giving-back-to-our-community/
Before you purchase real estate, you will need to hire a title company to conduct what's known as a title search. As an informed and involved property owner, it is important to understand what a title search involves and why is it so important.
What Is a Title Search?
When you purchase real estate, you acquire a document called the title, which proves your ownership of that property. You hold that title until you sell the property, when the title is transferred to the new owner.
A title search is the process used to verify that the person selling the property does, indeed, have the legal right to the title of that property. As a part of the search, your title company will discover all of the previous holders of the title. They'll also find out whether there are any liens against the property. For instance, if a previous owner failed to pay their property taxes, the local government may have a lien against the title.
If the title search does reveal any liens, restrictions on the use of the land, or previously unknown claims to the title, then these can be dealt with before you purchase the property, thus ensuring that you have a clean right to the title.
How Is a Title Search Conducted?
Conducting a title search involves a lot of phone calls and reviewing of records. As a part of the process, your title services provider reviews tax assessments, court records, insurance policies, wills, and other relevant documents.
Once the search is complete, your title company will either inform you that the title is clean, or they'll let you know that there's a defect in the title. If there is a defect, such as a lien, unpaid taxes, or easements, then your agent will walk you through the process of addressing the defect, should you so choose. You may also decide to walk away from the sale based on the results of the title search.
How Long Does a Title Search Take?
This depends on the property you're purchasing. A title search for a newer property could take just a few hours. For an older home that has had many owners, the search process could take several weeks.
What If The Title Company Misses Something?
Title companies do their best to be thorough, but on occasion, a defect might go overlooked. In such cases, a title insurance policy will protect you. If you have title insurance and a defect is discovered in your title after purchase, then your insurance policy will pay for any related damages. Purchasing title insurance is highly recommended for this reason, and is mandatory in Pennsylvania for properties purchased or refinanced with mortgage loans.
The title search is a very important part of any real estate purchase. If you're looking for a title company Philadelphia residents depend on, contact Heritage Land Transfer. We have been providing title and escrow services in PA, NJ, and beyond for more than 30 years!
This blog was originally posted on https://landtransfer.com/property-title-search-what-it-is-and-how-it-works/
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