Title insurance is one of the most important yet least understood parts of a real estate transaction. In Lancaster, PA, title insurance protects buyers and lenders from unexpected ownership issues that could arise after closing.
At The Craig Hartranft Team, we help clients understand why title insurance matters and how it fits into the home buying and selling process.
What Is Title Insurance?
Title insurance is a policy that protects against financial loss due to problems with a property’s title, such as:
- Unknown liens
- Ownership disputes
- Errors in public records
- Fraud or forgery in past transfers
Unlike other insurance types, title insurance focuses on past issues rather than future events.
Why Title Insurance Matters in Lancaster County
Lancaster County includes many older homes with long ownership histories. Older properties may have:
- Historic boundary discrepancies
- Unreleased liens against the property
- Incomplete documentation from past transactions
Title insurance provides protection if an issue surfaces later.
The Title Search Process
Before closing, a title company performs a title search to verify:
- Legal ownership
- Outstanding liens or claims
- Easements or restrictions
Title insurance is issued based on these findings.
Owner’s vs. Lender’s Title Insurance
There are typically two types of policies:
- Lender’s title insurance (required for most mortgages)
- Owner’s title insurance (optional but strongly recommended)
Owner’s coverage protects the buyer’s personal investment in the home.
Cost Considerations
Title insurance is usually a one-time cost paid at closing. Costs depend on purchase price and transaction details.
Frequently Asked Questions
Is title insurance required?
Lender’s coverage is usually required; owner’s coverage is optional but valuable. If you’re paying cash for a home, title insurance is completely option but highly recommended.
Does title insurance last forever?
Owner’s policies generally last as long as you own the property.
Final Thoughts
Title insurance is a key protection tool in Lancaster real estate transactions. Buyers who understand its role are better equipped to safeguard their investment.