Title Insurance
What it covers, why it matters, and how it works in Pennsylvania.
Overview
What Is Title Insurance?
When you purchase real estate in Pennsylvania, you are not just buying the physical property. You are buying the legal right to own it. Title insurance protects that ownership right against claims or defects that may exist in the property's history, even those that were unknown at the time of purchase.
Unlike most insurance policies that protect against future events, title insurance protects against past events — problems that existed before you took ownership but were not discovered during the title search. It is a one-time premium paid at settlement that provides coverage for as long as you or your heirs own the property.
Settlement Partner
Trident Land Transfer Company
Kerry works with Trident Land Transfer Company, the title and settlement affiliate of Berkshire Hathaway HomeServices Fox & Roach, Realtors. Trident brings experienced, detail-oriented settlement professionals and secure technology to every closing, ensuring your property rights are protected and that everything is in place on settlement day.
You are not required to use Trident. As a buyer in Pennsylvania you have the right to select any licensed title company you choose. However, Trident's experience in the Pocono region, their familiarity with transactions in all four Pocono counties, and their integration with the Berkshire Hathaway HomeServices Fox & Roach transaction process make them a natural choice for many of Kerry's buyers.
The Process
How Title Works in Pennsylvania
Before any real estate transaction can close in Pennsylvania, the title company conducts a title search — a thorough examination of the public records related to the property, typically covering 60 years or more of recorded history.
The Title Search Reviews
Deeds
The chain of ownership from prior owners to the current seller.
Mortgages and liens
Any outstanding loans or claims secured against the property.
Judgments
Court-ordered financial claims against prior or current owners.
Tax records
Unpaid property taxes, municipal liens, or tax sales.
Easements
Recorded rights of others to use part of the property.
Restrictions and covenants
Limitations on how the property can be used.
Surveys
Recorded boundary descriptions and encroachments.
Probate records
Transfers through estates and wills.
HOA documents
Recorded declarations, restrictions, and assessments.
Who Chooses the Title Company?
In Pennsylvania, it is customary for the buyer to select the title company. You are not required to use any title company suggested by the seller, the seller's agent, or your lender. Kerry can refer title companies with strong reputations and experience in Pocono region transactions.
Coverage Basics
The Two Types of Title Insurance
Lender's Title Insurance
Also called a loan policy.
Required by your mortgage lender on every financed purchase. Protects the lender's interest against title defects. Coverage decreases as your loan balance decreases and terminates when the loan is paid off.
Does NOT protect you as the buyer. It only protects the lender.
Owner's Title Insurance
Also called an owner's policy.
Optional but strongly recommended. Protects YOU as the buyer for the full purchase price of the property. Coverage does not decrease over time and remains in effect for as long as you or your heirs own the property.
Protects your entire investment. One-time premium paid at settlement.
Policy Comparison
Standard vs. Enhanced Owner's Policy
Trident offers buyers a choice between two levels of owner's title insurance coverage. Both are one-time premiums paid at settlement.
Standard Owner's Policy
Covers defects that existed before your purchase:
- Forged documents in the chain of title
- Unknown liens and encumbrances
- Errors in public records
- Undisclosed or missing heirs
- Fraud and forgery
- Easements not shown in records
- Legal defense costs if title is challenged
Lower premium
Enhanced Homeowner's Policy
Includes everything in the Standard Policy PLUS:
- Building permit violations by a prior owner
- Encroachments discovered after purchase
- Zoning violations made by a prior owner
- Post-policy forgery or fraud
- Damage from mineral rights claims
- Automatic inflation protection on coverage amount
- Legal defense costs if title is challenged
Slightly higher premium — modest additional cost for significantly broader protection
What's Covered
What Title Insurance Covers in Pennsylvania
Errors in Public Records
Clerical errors in deeds, mortgages, or other recorded documents can affect the legal description of the property or the chain of ownership.
Unknown Liens
A lien is a legal claim against a property for an unpaid debt. Liens can be filed by mortgage lenders, contractors, the Commonwealth, municipalities, courts, and HOAs. A prior owner's unpaid debt can attach to the property and follow it to a new owner if not discovered before closing.
Forgery and Fraud
Fraudulent deeds can invalidate the chain of title, resulting in a third party asserting a valid ownership claim against your property. Title insurance provides coverage and legal defense if this occurs.
Undisclosed or Missing Heirs
If an heir was unknown or improperly excluded from a probate process, that heir may have a legitimate legal claim to the property even after it has been sold.
Boundary and Survey Disputes
Encroachments, where a fence, driveway, or building crosses a property line, are common in the Pocono region where many properties have irregular lot shapes and wooded boundaries.
Easements Not Shown in Records
Not all easements are properly recorded. A neighbor may have a longstanding right to cross your property, or a utility company may have an unrecorded right-of-way.
PA-Specific: Municipal Liens
Pennsylvania municipalities have broad authority to file liens against properties for unpaid bills and code violations. Title insurance provides additional protection if a lien was not properly recorded or discovered.
PA-Specific: Realty Transfer Tax Issues
If a prior transfer was improperly structured to avoid transfer tax, the Commonwealth may assert a claim against the property for unpaid taxes.
Costs
Title Insurance Costs in Pennsylvania
Pennsylvania title insurance premiums are regulated by the Pennsylvania Insurance Department and are based on a filed rate schedule. Title companies compete on service, not on base premium price.
These are approximate ranges. Contact your title company for an exact quote.
The Re-Issue Rate
Pennsylvania allows for a reduced premium called a re-issue rate when the property was previously insured and the prior owner's policy can be presented to the new title company. The re-issue rate is typically 40 to 60% less than the standard rate.
Closing Day
Title and Settlement in Pennsylvania
In Pennsylvania, the title company plays a central role in the real estate closing process. At settlement, the title company:
Conducts the title search and issues the title commitment.
Prepares and coordinates all closing documents.
Holds the buyer's earnest money deposit in escrow.
Receives and disburses all settlement funds.
Records the deed and mortgage with the county recorder of deeds.
Issues the lender's and owner's title insurance policies after recording.
Calculates and remits Pennsylvania Realty Transfer Tax to the Commonwealth.
Pennsylvania Realty Transfer Tax
Transfer tax exemptions exist for certain transfers including between spouses, parent and child, and certain estate transfers. Consult your real estate attorney for guidance.
Recording with the County Recorder of Deeds
After settlement, the title company records the new deed and mortgage. In the Pocono region:
Monroe County
Recorder of Deeds
Stroudsburg, PA
Carbon County
Recorder of Deeds
Jim Thorpe, PA
Pike County
Recorder of Deeds
Milford, PA
Wayne County
Recorder of Deeds
Honesdale, PA
Cash Buyers
Title Insurance for Cash Buyers
Cash buyers are not required to purchase title insurance since there is no lender involved. However, the owner's policy is just as important for cash buyers. Without title insurance, cash buyers are purchasing with no independent review of the title's validity and no protection if a defect surfaces later. In the Pocono market, where many properties have changed hands multiple times or have been transferred through estates, title insurance is a prudent protection for every buyer, financed or cash.
Questions About Title Insurance?
Kerry is happy to walk you through the title and settlement process and can refer you to experienced title companies in the Pocono region.