Buying a home in McCandless is exciting, but the paperwork at closing can feel like a maze. One line item that raises questions is title insurance. You may be wondering what it actually covers, whether you really need it, and how much it will cost in Allegheny County. This guide breaks it down in plain language so you can close with confidence. Let’s dive in.
What title insurance is
Title insurance protects you from financial loss related to defects in a property’s past ownership records. It focuses on events that happened before your closing, such as a forged signature on an old deed, an undisclosed heir, or a previous lien that was never released. Unlike homeowners insurance that covers future events, title insurance is about hidden issues in the chain of title.
In McCandless, homes range from older properties with long ownership histories to newer builds. That variety can mean old mortgages that were never properly released, informal easements, or recording mistakes. Title insurance helps you protect your equity and avoid costly surprises.
Owner policy vs lender policy
Most buyers see two types of title insurance at closing. They protect different interests and serve different purposes.
Owner’s title policy
- Protects your legal ownership and equity up to the policy amount, usually the purchase price.
- You buy it once at closing and it lasts as long as you own the home. Your heirs are typically covered too.
- It is optional, but strongly recommended for most buyers because it protects you, not the lender.
Lender’s (mortgagee) policy
- Protects the lender’s lien on the property up to the loan balance.
- It is usually required if you have a mortgage.
- You pay the premium once at closing. The policy remains in force for the lender while the loan exists.
When both policies are issued at the same time, they typically coordinate so your equity and the lender’s lien are both covered.
What standard policies cover
Title insurance policies include coverage for many common risks. A standard policy often addresses:
- Forged or fraudulent signatures on past deeds or documents
- Undisclosed or missing heirs with claims to the property
- Errors in public records, such as incorrect indexing or clerical mistakes
- Unknown liens, including mechanic’s or judgment liens that were not found before closing
- Missing or improperly filed releases of prior mortgages or liens
- Mistakes in the legal description of the property
- Access or rights-of-way issues when an endorsement applies
Coverage details can vary by policy form and endorsements. Your title commitment will list what is included and what needs to be cleared before closing.
What policies usually exclude
Title insurance does not cover everything. Typical exclusions include:
- Zoning or land-use issues and violations
- Environmental conditions or contamination unless endorsed
- Survey matters not in public records unless you obtain a survey or a survey-related endorsement
- Issues that arise after the policy date, unless an endorsement provides protection
- Problems you knew about and did not disclose before policy issuance
- Government actions like eminent domain or police powers unless endorsed
If you need protection for specific items, ask about endorsements that can add coverage for your property type and situation.
How premiums work in Pennsylvania
Title insurance costs are paid once at closing. The policy then remains in force for the insured interest. Premiums vary based on several factors, and insurers file rates with the Pennsylvania Insurance Department.
What determines the cost
- Coverage amount: Owner policies are usually written for the purchase price. Lender policies are based on the loan amount.
- Policy type and endorsements: Expanded forms and endorsements add cost.
- Simultaneous issuance: When both owner and lender policies are issued at the same time, a discount often applies.
- Reissue and refinance rates: If you are refinancing and a prior policy exists, discounted rates may be available.
- Any curative work: Clearing title defects or adding endorsements can change costs.
Who pays what in Allegheny County
In Pennsylvania, it is common for buyers to pay for the lender’s policy when they have a mortgage. Buyers also frequently pay for the owner’s policy, but this is a matter of local custom and negotiation. In some transactions, sellers provide concessions that cover certain closing costs. Your Closing Disclosure or settlement statement will show how the premiums are allocated.
Ask for a written estimate from your title company or closing attorney early in your transaction so you can compare options and set expectations.
The title process in Allegheny County
Understanding the workflow helps you stay ahead of deadlines and avoid surprises.
Typical steps from contract to closing
- Title search and examination: The title company reviews county and court records to build the chain of title and locate defects.
- Title commitment: You receive a commitment that outlines coverage conditions and items that must be cleared before issuing the final policy.
- Curative items: Payoffs, releases, affidavits, and any legal actions needed to resolve defects.
- Settlement: Signing, funding, and coordination among parties handled by the title company or closing attorney.
- Recording: The deed and mortgage are recorded with the county office that maintains real estate records. This creates public notice of your ownership and the mortgage lien.
Local checks that matter
- County and municipal taxes: Expect verification of Allegheny County property tax status and checks for municipal or authority liens such as water, sewer, or code violations.
- Recorder’s office records: Title examiners review deed, mortgage, judgment, and probate records as part of the search.
- HOA and condo documents: If applicable, ensure declarations, bylaws, and assessments are reviewed.
Smart coverage choices for McCandless homes
McCandless includes a mix of pre-war, mid-century, and newer subdivisions. Depending on the property, consider these options:
- Survey-related coverage: If you have boundary concerns or visible encroachments, ask about a current survey or a survey endorsement.
- Access and utility easement endorsements: Useful where a driveway or utility line crosses neighboring land.
- Mechanic’s lien coverage: Helpful if recent renovations occurred and contractors could claim unpaid work.
- Zoning or ordinance endorsements: Limited in scope, but can add targeted protections for certain risks.
- Condo or planned community endorsements: Tailored to units and common elements.
Your title company or attorney can explain which endorsements fit your property and purchase terms.
Questions to ask your title company
Use this checklist to clarify coverage, timing, and cost before you get to the closing table.
- What are the premiums for the owner and lender policies based on my purchase price and loan amount?
- Are you issuing both policies at the same time, and does a simultaneous discount apply?
- Which endorsements do you recommend for this property and why?
- Do I need a new survey, or will an existing survey qualify for any endorsements?
- What curative items must be resolved before closing, and who is responsible for each?
- How will deed and mortgage recording be handled, and when should I expect the final policy?
Bottom line
Title insurance is a one-time cost that protects you from title defects that could cloud your ownership or trigger expensive disputes. In Allegheny County, the process includes a thorough search, a commitment that outlines requirements, and coordinated recording after settlement. Choosing the right mix of policy and endorsements helps you close smoothly and protect your investment in McCandless for years to come.
If you want help reviewing your options, our team can coordinate with your title company, explain your Closing Disclosure, and keep your timeline on track.
Ready to buy or sell in Pittsburgh’s North Hills with confidence? Connect with The Honeywill Team to talk strategy or to Request a Free Market Valuation.
FAQs
Do I need an owner’s title policy if I have a lender policy?
- Yes. A lender policy protects the lender’s lien, not your ownership or equity. An owner policy protects you for as long as you own the property.
How much does title insurance cost in Allegheny County?
- Premiums depend on your purchase price, loan amount, endorsements, and insurer rate filings. Ask for a written estimate early and confirm any simultaneous issuance discounts.
Who usually pays for the owner policy in McCandless?
- Local custom and your contract terms control. Buyers often pay, but sellers may contribute through concessions. Confirm with your agent or closing attorney.
What happens if the title search finds a problem?
- Many issues are cured before closing through payoffs, releases, or affidavits. Serious defects may require legal action or will be excepted in the policy until resolved.
What documents should I review before closing?
- Review the title commitment, written premium estimate with endorsements, any curative requirements, and how recording will be handled for the deed and mortgage.
