Jan 2012

PA Title Insurance is all inclusive

By Marc Shaw

I know we have posted similar write ups on the fact that PA Title Insurance is state regulated and there should only be a difference in ancillary fees.  However, this morning I was reviewing a copy of a HUD from one of our clients who is refinancing their home.  They couldn’t believe how much less Title Insurance section was then when they had their last closing a few years back.  Now granted the actual title insurance was a bit more because they now qualify for a 2 year refinance rate.  But the fees the client was referring to were a list of items on line 1101 of the HUD1. 

The previous PA Title Company had charged for examination, doc prep, title search, abstract and even had a escrow fee on the HUD.  Below is a statement from the Title Insurance Rating Bureau of Pennsylvania.  Again, all PA Title Companies are held to this standard when issuing Pennsylvania Title Insurance.

Pennsylvania is one of the few States where the rate is all-inclusive in that the the title insurance charge includes the cost of the search, title examination, escrow and settlement services and the insurance risk assumed by the title insurer.

Pennsylvania’s all-inclusive rate approach is a matter of law, not just of practice. The “FEE” for title insurance “…means and includes the premium, examination and settlement or closing fees and every other charge….”40 P.S. §910-1 (5).

It is vital that whenever you are shopping for PA Title Insurance whether for a refinance or purchase you use a company that understands Pennsylvania.  For any questions never hesitate to contact our offices with any questions.

Other Posts that you may find helpful:

The Importance of using a 3rd Party Independent PA Title Company

Pennsylvania Title Insurance costs when refinancing

How to choose a PA Title Company

More About Us and the PA Title Insurance Rate Schedule