by Francine D'Elia Wirsching on May 10, 2011
Why is it so important to you, the consumer, to have a local title insurance professional conduct your real estate closing?
The old adage that all real estate is local is absolutely correct, no doubt about it. And that adage is no truer than in Pennsylvania. Each county and township has its own criteria to transfer real estate and record transactions.
It’s your choice
When refinancing or purchasing be sure to shop for your title insurance provider and by all means choose a local, independent, licensed provider. Choose someone in or around the county in which you live. Don’t settle on the real estate agent’s “in-house” title agency and don’t let your television, internet, or national lender choose for you (let’s call them “out-of-state” lenders). If you do, most likely, you will have a “mobile” notary or notary signing agent conducting your closing.
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by Francine D'Elia Wirsching on May 6, 2011
When you file a mortgage application with an out-of-state lender (including the big national banks), the lender typically orders title insurance through an out-of-state title insurance agency located in some place like Nebraska. And in some cases, the lender has an ownership interest in the title agency so it is making money off your loan and your title insurance. That’s why they push so hard for you to use the “in-house” company.
How the real estate closing works
The Nebraska title insurance agent doesn’t have a physical presence in Pennsylvania so how will it handle your real estate settlement? Quite simple – but it is going to cost you! It will find a nearby person who is a Notary Public. This Notary may have a printer in the trunk of his car or on top of his clothes dryer. When he receives the call to show up at your closing, he prints the mortgage documents containing all your personal financial information and shows up at your door. Why your door? Do you think it is because he is making it convenient for you? No, it is because he doesn’t have a local office. And guess what, the only way he is paid is by charging you a settlement fee anywhere from $150 -$350 to come to your home. This is how the Notary gets paid – you pay him – not the title agency that contracted with him. And unlike if you used someone local, the fee is not included in the title insurance premium you are paying. In most cases, he has very limited knowledge and expertise. He is not employed by the title agency.
