Frequently Asked Questions

Frequently Asked Question regarding Title Insurance

What is a title to a home?

The names of the “buyers” or “grantees” on the deed are the people “in title” to the property. Those “in title” have legal ownership of the property, subject to the rights and claims that others might have in the same property. Those rights and claims could be an easement, a mortgage or a lease, among other things.

What is title insurance?

Title insurance is a contract of indemnity between a title underwriter (the insurance company) and their policyholder, either the lender or property owner, or both. In fact, the two most common types of title policies are the owner’s policy and the lender’s policy. The policy protects the policyholder’s interests in the property from a number of potential defects. Contrary to most forms of insurance, a title insurance policy protects the policyholder from events that have happened in the past, rather than insuring against some future event.

What type of protection does title insurance provide?

Subject to the language of the policy, a policyholder is protected from claims arising from a number of possible sources, including but not limited to:

  • Forged signatures on deeds or other documents;
  • Missing or unknown heirs;
  • Undiscovered liens;
  • Unrecorded deeds or leases;
  • Unpaid inheritance or estate taxes;
  • Deeds or documents executed by minors;
  • Deeds or documents executed by legally incompetent persons;
  • Unknown marriages or divorces;

Why do I need title insurance?

Without title insurance, people purchasing property would potentially be subject to exorbitant legal costs defending themselves against the flaws in title resulting from the prior acts of others. A lender will generally require title insurance when providing the homeowner with a mortgage. The lender’s policy protects the lender and keeps their lien in the first position, which allows them to have the greatest priority should they need to foreclose on the loan. However, the lender’s policy does not protect the owner of the property. The owner must purchase an owner’s title insurance policy in order to protect their own interests in the property.

Can my lender or realtor force me to use a certain title insurance agent?

Absolutely not! Federal law mandates that the consumer has the power to choose the title insurance provider. Many realtors or lenders have Affiliated Business Arrangements (ABAs) with a title agency, and they may attempt to “guide you” to use their “partners”. Of course, the realtor or lender usually has a financial interest in “guiding you” to their affiliated partner. At Sunrise Closing Services, LLC, we are a local, independent title insurance agency devoted to working for you.

How do I get title insurance?

Once you tell your lender that you want Sunrise Closing Services, LLC, to handle your closing, we will obtain a title search on the property related to your transaction. When the search is completed and returned, we’ll obtain all payoff statements for any mortgage, liens, judgments, taxes and other items which might impair the title to the property. We’ll prepare all necessary documentation and communicate with all parties involved in the transaction to make certain all parties are aware of their respective duties, obligations, responsibilities and timelines. Finally, we’ll schedule and conduct an efficient, smooth closing and ensure all parties fully understand all of the documents required in the transaction.

As agents for Chicago Title , we will then provide your lender and you (if you choose to obtain a policy) with a title insurance policy to protect the policyholder’s interest in the property.

What costs are associated with title insurance?

Title insurance rates are standard throughout Pennsylvania and are set by the Title Insurance Bureau of Pennsylvania, in conjunction with the Pennsylvania Insurance Department. Your final policy costs depend on a few variables. The amount of insurance required by the lender for their policy is generally equal to the amount of the loan. The lender might also require additional coverage endorsements or a closing protection letter. An owner’s policy is generally for a face amount equal to the fair market value of the home. Your cost will be for the greater of those two policies. When using Sunrise Closing Services, LLC, the cost of the policy includes the title search, examination and related services. In the extremely rare instance where extraordinary circumstances may exist, like the investigation of multiple chains of title, each potential additional charge will be reviewed with you as far in advance of closing as possible. We strive to do your closing as cost effectively as possible for you.

Are there any discounted rates available?

In some instances, yes there are. If you are refinancing a loan within a certain period, you may be entitled to a reduced rate. In addition, if the property you are purchasing has been insured within the last ten years, you may be entitled to a reissue rate. At Sunrise Closing Services, LLC, we work with you to make sure that you receive the proper rate associated with the circumstances of your transaction.

Why should I choose Sunrise Closing Services, LLC?

We are a locally owned, Pennsylvania based independent title insurance agency. We are also attorney owned, which provides you with the assurance that each file is handled from start to finish by an attorney. We keep you informed as your transaction progresses, and we provide flexible closing hours and locations to make the closing as convenient for you as possible. Sunrise Closing Services is also a member of the Pennsylvania Land Title Association, an affiliation that keeps it connected to the cutting edge of developments in the Pennsylvania title industry. And with our reasonable rates, you are certain to get a lot of bang for your buck.