Understanding Pennsylvania Title Insurance Rates
Title insurance is a crucial part of any real estate transaction in Pennsylvania. Unlike other forms of insurance, title insurance protects against financial loss from defects in the title of a property that existed at the time of sale. These defects could include things like outstanding liens, unpaid taxes, undisclosed heirs, or errors in public records. Without title insurance, a buyer could be responsible for these hidden issues, potentially leading to significant financial hardship or even the loss of the property.
In Pennsylvania, title insurance rates are not set by individual title insurance companies. Instead, they are regulated and filed with the Pennsylvania Insurance Department. This means that for a given purchase price or loan amount, the premium for title insurance will be the same regardless of which title insurance company you choose. The rates are based on a tiered schedule that increases with the value of the property or the loan amount. Understanding this structure can help you anticipate the cost associated with your real estate transaction.
The Pennsylvania Land Title Insurance Rate Service (PLTA Rate Service) publishes the official rate schedule. Our calculator uses this schedule to provide an estimated title insurance premium. The calculation is based on the total of the "maximum liability" which is typically the purchase price for an owner's policy, or the loan amount for a lender's policy. For a refinance, the rate is usually based on the new loan amount. For new purchases, it's common to get both an Owner's Policy (protecting the buyer) and a Lender's Policy (protecting the mortgage lender), and the premiums are often combined but calculated separately based on the respective coverages.
It's important to note that while the base rate is regulated, there can be additional fees associated with a title search, title examination, and closing services that are separate from the title insurance premium itself. This calculator focuses specifically on the title insurance premium based on the Pennsylvania mandated rate schedule.