Who Pays For Title Policy Insurance?

  • This depends on your local custom.
  • It can differ from county to county, but it is also negotiable in the purchase offer.
  • Sometimes sellers and buyers split the fee for the owner's policy.
  • Typically, the buyer pays for the lender's coverage.

How Long Are Title Policies Good For?

Forever, theoretically. If you are planning to resell the property within a couple years, ask your title company about "binder" coverage. Most companies will sell you a binder policy for 10% more. A binder is good for two years, often can be extended beyond that time, and the fee charged for the new buyer's policy will be the difference between what you bought the property for and the price at which it sold. In other words, you will get a credit for the amount of coverage you purchased under your own Owner's Title policy.

How Often Are Title Policy Insurance Premiums Paid?

Once. The fee is due when you buy. You will never pay it again. Title policy insurance is the best insurance policy you can ever buy.

To learn more about how title insurance and other closing costs work, call us at 215-576-8666.

Taken from: http://homebuying.about.com/od/homeshopping/qt/TitleInsurance.htm