Title Insurance: What it is and Why You Need It

Real estate may be one of the largest financial investments you make in your lifetime. It is vital to know how to protect yourself throughout the purchasing and financing process. Title insurance is one way you can make sure that you don’t lose out if you run into any snags regarding title or ownership of your new property. Experienced real estate lawyers assist you with your transaction to ensure it runs smoothly from beginning to end.

What is Title Insurance?

Title insurance protects a policyholder if there are inconsistencies or issues with the title for a property. Title insurance covers both known and unknown discrepancies in the full history of ownership of the property. There are two kinds of title insurance—an Owner’s Policy, which protects the buyer, and a Loan Policy, which compensates the lender should issues with the title arise. Most lenders require that title insurance is included in a buyer’s mortgage closing costs. Typically, the mortgage lender’s Loan Policy does not safeguard the buyer. Although Owner’s title insurance is often optional, it is well worth the cost of protecting your rights and interests

Why Do You Need Title Insurance?

Title insurance protects both the owner and lender in the event that something goes wrong and issues of ownership arise. The recorder of deeds in most municipalities does not guarantee 100 percent accuracy in its record-keeping. Although most title searches are accurate, there are some risks of title issues such as filing errors, forgeries or undisclosed heirs. Although it is a rare occurrence, someone with an older document that shows ownership could try and claim your property, which can cause stress and lead to costly litigation.

An Owner’s Policy is usually equal to the amount of the purchase price. This policy is valid for the duration of time the owner or their heirs hold a stake in the home or commercial property. In addition to mitigating risk before a transaction is finalized, an Owner’s Policy pays valid claims and attorney fees if someone disputes the accuracy of the title after the property is purchased. A Loan Policy serves as a safeguard for a lender’s financial interest in the property. It is typically issued in the amount of the loan. Liability diminishes as the mortgage is paid down.

How Do You Choose Title Insurance?

Real estate lawyers in PA have relationships with local title search and title insurance companies. They can help you find affordable title insurance and handle all aspects of your transaction. Your attorney will also draft and review contracts, handle negotiations, prepare the deed and accompany you to the closing. Seeking the counsel of an experienced attorney and being proactive about protecting your rights and securing your title can help you avoid costly court battles and give you peace of mind.

Our knowledgeable West Chester real estate lawyers at Carosella & Associates can help you avoid any title issues that arise and assist you through the real estate transaction process every step of the way.

This blog was originally posted at https://carosella.com/title-insurance-what-and-why-you-need-it/

How to Update Your Estate Plan After a Divorce

Even in an amicable divorce, failing to change your estate plane can lead to unintended consequences and costly litigation down the road. Seeking the counsel of an experienced estate planning attorney who can help you sort out the details of updating your estate plan ensures that your interests are protected and your wishes are carried out after you’re gone.

Make a New Will

If you made a will while you were married, you most likely left everything to your spouse and named them as your executor. In Pennsylvania, the provisions in your will that involve your ex-spouse may be automatically revoked, but having a lawyer help you draft new estate planning documents such as family wills and trusts gives you a fresh start and allows you to name new beneficiaries, executors and trustees.

Naming a guardian for your minor children is also a vital part of a will. You can name whomever you want to serve as a guardian, but keep in mind that even if you don’t want your ex-spouse raising your children in the event of your death, courts only appoint guardians in cases where a parent is found to be unfit.

Update Other Beneficiary Designations

Many assets such as retirement accounts, life insurance policies and payable-upon-death bank accounts and brokerage accounts are not included in your will. Make sure to contact the administrators of these accounts to change beneficiary designations and update them in writing as soon as possible.

Create New Powers of Attorney

If your powers of attorney give your former spouse authority to make decisions on your behalf, revoke them and make new documents. Powers of attorney allow someone else to make decisions and act on your behalf should it become necessary due to incapacitation. You should have two powers of attorney: one for health care and one for finances. A durable power of attorney may give your spouse access to all of your accounts and assets even if you are not incapacitated. It’s important to revoke it as soon as possible, even during the divorce process, especially if your split is not amicable. Your divorce lawyer will execute a new one and provide your spouse with notice of the revocation.

If You Own a Business, Make a Succession Plan

Business succession planning is not only a valuable estate planning tool; it can protect your business in the event of divorce. Divorce can have a significant impact on a small business when issues of investment and ownership are involved and dealing with negotiations during the divorce process can make it difficult to focus on running your business. Protecting your small business before getting married or considering divorce is the best way to avoid getting mired in costly court battles. An experienced attorney can help you come up with small business succession planning strategies that safeguard your business and your financial future.

At Carosella & Associates, our experienced attorneys can guide you through the divorce process and ensure your updated estate plan protects your family’s interests.

This blog was originally posted at https://carosella.com/how-to-update-estate-plan-after-divorce/

Risk Mitigation for Your Business: What is it and why is it so critical?

From theft to property damage to employment issues, risk is a part of doing business. It is important to be aware and get ahead of potential risks that could hurt your business and risk mitigation provides a wide array of benefits that can protect your company’s brand and your bottom line. An experienced business liability lawyer can advise you on potential pitfalls and help you create a risk management plan that is tailored to meet the specific needs of your business.

What is Risk Mitigation?

Risk mitigation is a set of measures designed to reduce or eliminate the risks associated with a business or project. Regardless of the type of business you own, risk management planning can improve the efficiency and consistency of your operations, boost your bottom line and reduce the impact of risks you take that don’t turn out as planned. Risk mitigation can be utilized in all types of businesses, and real estate attorneys find it particularly useful when it comes to construction and real estate development projects.

Benefits of Creating a Business Risk Mitigation Plan

There are many benefits to having risk mitigation policies and procedures in place. Knowing how to avoid and being properly prepared to deal with any risks that may arise is vital. Having a risk mitigation plan also makes financial sense because it allows you to strategically prepare for all kinds of problems that can cost your company money and make or break your business.

When structured appropriately, management of strategic risks can create highly profitable operations and increase a business’ appeal to lenders. A skilled attorney can help you determine how to prioritize potential risks and create a plan to deal with each possibility accordingly, which increase efficiency and preserve important resources when problems arise. If you’re well prepared, there will be less chaos and you’ll have more time focus on the important task of running your business.

Protecting Your Company’s Reputation and Brand

Being proactive about risk management lets other businesses, customers, investors and employees know that your company is run with integrity and that the people leading it are responsible and competent. For example, if you’re considering an IPO for your company, risk mitigation plans are an important piece of the puzzle that could increase its value. Including risk mitigation as part of a business succession plan can also instill confidence in lenders, investors and employees, which can make it easier to expand or get a new business off the ground.

The Importance of Insurance

Making sure you have adequate insurance coverage for workers’ compensation, liability, property damage and other potential issues is one of the best ways to reduce negative impacts on your company. The amount and type of insurance you purchase is based on the nature of your business and the specific risks it faces.

Interested in learning more about creating a risk mitigation plan to protect your business? Our business lawyers in West Chester have extensive experience in helping businesses develop risk mitigation strategies that work.

This blog was originally posted at https://carosella.com/risk-mitigation-for-your-business-what-and-why-is-it-so-critical/