As you go about buying real estate, you're likely to encounter some less-familiar terms. One of these terms is "title endorsement." Your real estate agent may mention title endorsement, or you might see it listed on an estimate from your title company. In either case, it's a good idea to understand this term so you have a better idea of what you're paying for and why you need it.
So, without further ado, here's an explanation of the title service known as title endorsement, along with a look at the different types of title endorsements.
What Is Title Endorsement?
Perhaps you're familiar with title insurance. It is a type of insurance that protects the buyer or the lender from any liens or claims against the title that may be revealed after real estate is purchased. Title endorsement basically takes things one step further from title insurance. It protects you against specific types of issues with your property's title.
Title endorsement is not necessary for every real estate transaction. However, it can be a very smart buy in certain situations. If you or your attorney have any reason to suspect there may be a specific issue with a title, you can purchase a title endorsement against that issue.
What Are The Different Types of Title Endorsement?
There are many, many different types of title endorsements. Those most commonly used types are explained below.
Survey Coverage
Survey coverage protects your interests should there be a discrepancy between the land identified on the title and the land that's listed on an insurance policy. This is helpful coverage when buying large tracts of land with poorly defined boundaries.
Minerals and Substances
Does someone have an easement to access minerals, oil, or other substances located beneath your land? A title endorsement can protect you should these parties cause damage to your land when adhering to the terms of the easement.
Zoning
A zoning endorsement can protect you if the local jurisdiction changes the zoning in a way that keeps you from using your property in the way you intended. This is a common title endorsement for business owners.
Access
If your property does not directly border a public street, such as if the driveway to access your home is on a neighbor's land, you will want an access endorsement. It protects you from losing that pathway to access your land.
Easements
Perhaps a neighbor has an easement allowing them to use your driveway to access your land. Or, perhaps the power company has an easement to access lines on your land. An easement endorsement, drawn up by a title company Pennsylvania residents trust, can protect you in this case.
Could you benefit from having a title endorsement drawn up as a part of your real estate purchase? Reach out to your Philadelphia title company for their expert advice. Heritage Land Transfer would be happy to help. We're a full-service title company and escrow agency, and we always put customers first.
Our team of expert professionals provides a seamless title transfer experience, guaranteed lowest rates, and the fastest closings. We believe in making the real estate transaction a happy experience for our clients and partners alike, and to that end, we do what it takes, including traveling to their preferred locations.
This blog was originally posted on https://landtransfer.com/title-endorsements-the-concept-and-the-types-explained/
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