In Pennsylvania, owner’s title insurance is not mandatory, but it is highly recommended for both traditional and FSBO transactions. This type of insurance protects the seller from financial losses if there are any defects or hidden issues with the property’s title after the sale has been completed. These issues can arise from errors in public records, forged documents, or even unknown heirs.
In Pennsylvania, the cost of owner’s title insurance is typically split between the buyer and the seller, with the buyer paying a larger portion. However, it is possible to negotiate with the buyer to split the cost differently.
Benefits of owner’s title insurance for FSBO sellers in Pennsylvania:
- Protection against financial losses: Owner’s title insurance can reimburse you for legal fees, losses, and damages if there are any problems with the property’s title.
- Peace of mind: Knowing that you have owner’s title insurance can provide peace of mind and protect your investment in the property.
- Faster closing process: Owner’s title insurance can expedite the closing process by ensuring that the title is clear and free of encumbrances.