The business of title insurance involves three basic functions and services: (1) the search and examination of land records (2) escrow and settlement services involved with closing a transaction and (3) the assumption of the insurance risk by the title insurance company with the issuance of a title insurance policy. While there could be a separate charge imposed for each of these functions and services, that is not the case in Pennsylvania.
Pennsylvania is one of the few States where the rate is all-inclusive in that the the title insurance charge includes the cost of the search, title examination, escrow and settlement services and the insurance risk assumed by the title insurer.
Pennsylvania’s all-inclusive rate approach is a matter of law, not just of practice. The “FEE” for title insurance “…means and includes the premium, examination and settlement or closing fees and every other charge….” 40 P.S. §910-1 (5).
Caveat: While Pennsylvania has an all-inclusive rate, there are other charges which may be made. For guidance, see menu item entitled “Other Possible Charges”.