While Pennsylvania law does not mandate title insurance for every transaction, mortgage lenders almost universally require a lender’s policy to secure their financial interest. This coverage addresses risks tied to a property's history, including unpaid taxes, undiscovered liens, and errors in public records. Without this protection, a single unresolved defect from a previous owner can lead to significant legal fees or even jeopardize ownership rights.

Buyers generally encounter two types of policies: a lender’s policy, which lasts until the mortgage is satisfied, and an owner’s policy. The latter is optional but recommended, as it provides protection for as long as the buyer or their heirs retain the property. Paid as a one-time premium at closing, the cost typically scales with the purchase price, often ranging from several hundred to over a thousand dollars. Though this adds to closing costs, it acts as an insurance buffer against the far greater expense of litigating property claims. The process begins with a title search, where professionals review public records to resolve legal claims before the transfer of ownership is finalized.