Things to Consider When Shopping for a Title Insurance Company

By Jeff Lender

In Pennsylvania, New Jersey, and many other states, the buyer has the right to choose which company will provide title insurance for their real estate transaction. No matter what your lender, real estate agent, or the seller might say, the choice of title companies is yours to make. At World Wide Land Transfer, we strongly advise you to exercise that right to choose. By choosing your own title company, you may be able to save yourself some money, and you will also have some other important advantages.

Here are some things to think about when you are shopping for a title insurance company:

Avoid Unnecessary Fees and Costs

While title insurance rates in PA and some other states are dictated by state law, that doesn’t mean you will get the same price no matter who provides your title services. Some companies will try to pump up their profit margins by charging allowable yet unreasonable fees for things like document preparation, title searches, settlement services, and escrow services. When you are shopping for a title company, be sure to examine each company’s rates and weigh them against the quality of service they provide.

Avoid Conflicts of Interest

Again, your real estate agent, your lender, the seller, or other parties may try to steer you toward a particular title company. In some cases, it’s because they own that title company. For example, many real estate agents also have their own title companies, meaning they aren’t exactly being objective when they recommend their own company to provide title and escrow services for your transaction. To protect your best interests, we recommend looking for a third-party title company that isn’t owned by anyone involved in the transaction. This will also give you the advantage of working with a title company that is focused purely on title and escrow services rather than one that is involved in multiple aspects of a real estate transaction.

Get the Coverage You Need

While most standard title policies will offer similar coverage, it’s always a good idea to closely examine the policies offered by each company and ensure they cover things like undiscovered liens, previously unknown heirs, and other common title defects. They may also offer different levels of coverage for these defects. In addition, you may want to find a company that offers enhanced title policies that cover defects that could come up in the future, like boundary line disputes, building permit violations, and other issues.

You should also remember that while your lender will require you to purchase a title insurance policy, this policy will not cover you as the homeowner. You will need to get a separate owner’s title policy to cover you, and it’s a good idea to get both of these policies from the same company.

Additional Services

A title company may or may not offer additional services to facilitate your real estate transaction, including escrow services and settlement services. If you want to have a smooth closing and ensure your interests are being represented, it’s a good idea to let the third-party title company of your choice handle these jobs. We suggest looking for a full-service title company like World Wide Land Transfer.

Get in touch with our team for help with your next real estate transaction and to find out more about all the benefits of working with a full-service, third-party title insurance company.

World Wide Land Transfer is a service-oriented PA title company with offices in Philadelphia, New York, New Jersey, Texas, Florida, and Washington, D.C. With a record of going above and beyond, we are trusted to close everything from complex commercial transactions to residential refinance and purchase transactions.