Q: Do I have to purchase owner's title insurance?

Although you are not required by law to purchase an owner’s title insurance policy, we recommend that you do so. When you weigh the benefits of the owner’s policy, along with the fact that it’s a one-time premium paid at settlement and the policy remains in-force for as long as you and or your heirs own the property, it's well worth the peace of mind. Keep in mind, if you’re going to have a mortgage, your lender will require you to obtain a lender’s title insurance policy to protect their interests against defects in title. If you're financing 80% or more of the purchase price, the lender’s title insurance policy accounts for the majority of the cost of the title insurance, making the additional premium for the owner’s policy just a few hundred dollars.

Q: How to ask for a commission rebate?

Here's a quick AI generated email to use when reaching out to potential real estate agents. Hi, I’m currently searching for a buyer agent and want to be transparent from the start. I’m only considering agents who offer a commission rebate. If this is something you provide, I’d love to discuss the details and next steps. Thanks!

Question 1

Why should I avoid final settlement at the end of the month?

Accepted Answer

If you want to eliminate some of the stress that sometimes comes with settlement, then don't schedule your settlement for the last few days of the month.

Read our blog post to understand why.

Question 2

What do I need to bring to settlement?

Accepted Answer

What to bring to final settlement, what to take with you when you leave.

Appraisal is complete, all of the inspections are finished and your mortgage lender and title insurance company are making sure that all of the i’s are dotted and t’s are crossed for settlement. Here is a checklist to make sure that you are prepared.

View Checklist

Question 3

What are the options for my Title in PA?

Accepted Answer

Common ways to hold title in PA:

When you purchase real estate, one of the decisions that you’ll be making is how to take title to your new property. There are different types of tenancy, and the one you declare on the deed is actually quite important. The type of tenancy indicates how the ownership is legally structured and how the property's ownership will be handled after one of the tenants is gone. Your title company can help you understand your options so that come settlement day, you're not rushed through this very important decision.

Learn more

Question 4

What NOT to sign when placing an offer on a house?

Accepted Answer

Just like when you buy a car and the dealership presents a list of optional add-ons, real estate transactions can include similar "extras." When you make an offer on a home, your real estate agent or broker might present you with disclosures offering administrative services or title insurance. But here’s the truth: your offer is not contingent upon agreeing to these providers or their services so don’t feel pressured to sign anything you're unsure about. Once your offer is accepted, you'll have about a week—around the same time you're scheduling your home inspection—to finalize your choices for title insurance and other services.

Question 5

What is title insurance?

Accepted Answer

Title insurance is an indemnity insurance that protects property owners (and their mortgage lender) against a financial loss in the event that a lien or judgment created by a previous owner should pop-up during the time that you own the property. When you purchase an owner’s title insurance policy, you’re covered for claims up to the purchase price of the property. An owner’s title insurance policy would also cover litigation costs for any covered claim, whether or not the claim is legitimate.

Question 6

What does a title company do?

Accepted Answer

Title companies wear several different hats during the course of a real estate transaction. Once you have a signed agreement to buy real estate, we start by completing a title search that goes back at least 60 years to make sure that the sellers are the rightful owners of the property and that they (along with the owners before them) haven’t created any liens or judgments that would prevent the buyer from owning the property free and clear of all defects.

We’re also responsible for coordinating the real estate settlement process with the buyers, sellers, mortgage lender, and real estate agents. Lastly, we conduct final settlement, and we assure that all of the seller’s financial obligations that could create a lien against the property are satisfied, the mortgage documents are signed, notarized, and recorded according to the lender’s instructions, and all taxes and other payments are dispersed according to the terms outlined on the ALTA Settlement Statement.

Question 7

Do I have to purchase owner's title insurance?

Accepted Answer

Although you are not required by law to purchase an owner’s title insurance policy, we recommend that you do so. When you weigh the benefits of the owner’s policy, along with the fact that it’s a one-time premium paid at settlement and the policy remains in-force for as long as you and or your heirs own the property, it's well worth the peace of mind.

Keep in mind, if you’re going to have a mortgage, your lender will require you to obtain a lender’s title insurance policy to protect their interests against defects in title. If you're financing 80% or more of the purchase price, the lender’s title insurance policy accounts for the majority of the cost of the title insurance, making the additional premium for the owner’s policy just a few hundred dollars.

Question 8

Who chooses the title company?

Accepted Answer

Federal law gives homebuyers/borrowers the right to choose their own title company in states like Pennsylvania, where it’s customary for the buyer to pay for it. Although your real estate agent, lender, or builder can suggest that you use their title company, they can’t demand it. If you’re purchasing new construction and your builder is insisting that you use their title company, who actually pays is negotiable, so if it’s that big of a deal to them, ask them to pay for it.

Question 9

How to ask for a commission rebate?

Accepted Answer

Here's a quick AI generated email to use when reaching out to potential real estate agents.

Hi, I’m currently searching for a buyer agent and want to be transparent from the start. I’m only considering agents who offer a commission rebate. If this is something you provide, I’d love to discuss the details and next steps. Thanks!

Question 10

When your agent suggests the in-house title company

Accepted Answer

When your real estate agent asks you to sign an authorization allowing them to order title insurance with their in-house title company - AI suggests this response:

Hi [Agent’s Name], before I proceed with any of the third-party services you’ve recommended, I’d like to confirm whether any of these referrals involve financial incentives, paid marketing agreements, or referral fees. I want to ensure there are no conflicts of interest and that all recommendations are being made in my best interest. Please clarify this in writing.

Question 11

When asking for a title quote

Accepted Answer

When asking for a title insurance quote, here's an AI email template to get you started:

Hi, I’m shopping for title insurance and would like a full breakdown of all fees associated with both the lender’s and owner’s policies. Please include title premiums, search and exam fees, settlement or escrow fees, recording fees, and any other charges. I want to make sure everything is disclosed up front with no hidden costs.

Question 12

What are closing costs?

Accepted Answer

Closing costs, which are additional fees paid by both buyer and seller on real estate transactions, typically add an additional 5%-7% of the purchase price to the cost of buying a house. They consist of lender origination fees, title insurance fees, admin. fees and/or commissions to the real estate broker, home inspection fee, state and municipal transfer tax, and county recording fees to record the new deed and mortgage. Also included as part of the closing cost calculation, but not considered fees, are reimbursements to the seller for pro-rated portions of real estate taxes that have been paid in advance, along with funding an escrow account managed by your lender to pay future real estate tax payments and homeowner’s insurance premiums.

Question 13

What does a closing cost estimate look like?

Accepted Answer

In the example below, we show you what a closing cost estimate looks like. And in under 5 minutes you can create your own estimates with just a few pieces of information on any property in PA, at my.cashtoclose.app. The tool is free to use and you can create as many estimates as you need on multiple properties without ever logging in. Or create a free account to save and return to your estimates later for editing.

(Click to enlarge or view this estimate online)

Question 14

How to ask your broker to waive the admin fee?

Accepted Answer

Here's a quick AI generated email to use when asking your real estate broker/agent to waive their admin fee.

Hi [Agent’s Name], I noticed there’s a [broker service/admin/transaction] fee listed in the agreement. I want to be upfront that I’m not comfortable paying anything more than I have to. Many agents I’ve spoken with are waiving these fees entirely, and I’d like to ask that this fee be removed or reduced as part of working together. Let me know if that’s something you can accommodate.

Question 15

How to discuss rates or a lender credit?

Accepted Answer

Here's a quick AI generated email to ask your lender if you're getting the best possible rate and if there's room for improvement or even a credit.

Hi [Lender’s Name],

Thank you for the offer you've provided—I appreciate your time and support so far. Before moving forward, I want to make sure this reflects your most competitive rate and loan terms. I'm currently comparing options from a few lenders and would like to know if there's any room for improvement in the interest rate, fees, or lender credits.

Could you provide a loan comparison both with and without a credit? How would a credit impact my rate?

Question 16

How to ask for a seller credit?

Accepted Answer

Here's are some simple AI generated emails to guide you if you're interested in a Seller Credit. You'll want to keep your agent and your lender in the loop.

Let your agent know you’d like to request a seller credit.

They’ll suggest an appropriate amount and include it in the offer.

Subject: Request to Include Seller Credit in Our Offer

Hi [Agent's Name],

I’m ready to move forward with an offer on the property and I wanted to discuss including a seller credit to help cover some of my closing costs.

Can you advise on how much would be reasonable to request based on the price point and what’s typical in this market? Whether a percentage or flat amount, I’m open to your guidance.

Let me know how we would structure it in the offer, I'd like to run this past my lender first.

Thanks so much,

Make sure your lender is on board, as there are limits to how much seller credit you can receive.

Hi [Lender’s Name],

I’m preparing to make an offer on a home and planning to request a seller credit to help cover some of my closing costs—possibly around [x $ or %].

Can you let me know:

The maximum seller credit allowed for my loan type?
How it needs to be worded in the contract?
If there’s anything I should be aware of from your end (like appraisal considerations or timing)?

I want to make sure it’s structured properly so there are no issues later on.

Thanks in advance for your help!

Question 17

How to ask family for a little cash?

Accepted Answer

Here's a quick AI generated template to use if you're thinking about asking family members to kick in a little cash. Just remember to keep your lender in the loop. There are no limits to donations from family, but all gifted funds need to be disclosed.

You may be inclined to send a text or email, but perhaps for close family members, a phone call maybe be most effective. To avoid it sounding like a shake down, the key is to approach with gratitude, clarity, and a touch of humor so it doesn’t feel awkward.

Hey [Mom, Dad, Grandpa Joe]

So…remember all those times you said I should stop renting and build equity?

Well, I’m finally doing it! I’m about to make an offer on a house, and I’m looking at my numbers. I can comfortably afford the monthly payments, don't worry. But between the down payment and the closing costs, my savings account is going take a hit.

I know this is a big ask, but would you consider gifting a little something to offset some of my costs? No pressure—just asking. I’d be super grateful for any help, and I’ll be sure to save you a spot on the couch!

Question 18

What exactly is a Broker Admin Fee?

Accepted Answer

Broker admin fees—also known as broker service fees, conveyancing fee, or flat-fee commissions—are charges brokers collect for so-called administrative services.

Question 19

Is this fee in addition to the sales commission?

Accepted Answer

Yes. Unfortunately, consumers often times find themselves in the middle of compensation challenges between real estate brokers and their agents. As brokers search for ways to offset paying their agents a large majority of the total commission, some brokers pass additional fees onto the customer to increase revenue. This tug of war has nothing to do with the consumer and the law is on your side. Consumers do not have to pay additional fees or use their real estate broker's in-house service providers as a condition of buying real estate.

Question 20

What if the broker refuses to waive this fee?

Accepted Answer

Know your rights. Under federal law, the buyer is not required to use any ancillary services provided by their real estate broker as a condition of purchasing real estate. That includes this admin fee. If you plan on shopping around, we suggest stating your intentions up front while interviewing potential agents. This prevents any hard feelings or misunderstandings once the emotions of house-hunting kick into high gear.

Question 21

If I don't pay it, who will manage my transaction?

Accepted Answer

A reputable independent title insurance company will already be providing the majority of these services for no additional charge. It’s all included in the one-time title insurance premium that you pay at final settlement.

For instance, when you hire ALT to provide title insurance and settlement services, we manage your transaction and there’s no additional charge. And the total list of services that we perform on your behalf far exceeds the transaction management services offered by most real estate brokers.

See what's included

Question 22

What is a mortgage broker?

Accepted Answer

A mortgage broker acts as an intermediary between you and potential lenders. Instead of working for one bank or lender, they have access to a wide network of options—ranging from major national lenders like Rocket Mortgage to local banks and credit unions.

Their job is to compare rates, terms, and programs across the market to find the best fit for your financial situation. A good broker can also negotiate on your behalf, help you understand lender credits, and guide you through the application process from start to finish.

Using a mortgage broker often saves time and can lead to better deals than going directly to a single lender - at no additional cost to you.

Question 23

What are the benefits of working with a local mortgage broker?

Accepted Answer

✅ 1. Personalized Service

Local brokers often deliver highly personalized attention, taking the time to understand your unique financial goals. They’re typically more accessible for questions and guidance throughout the process—even during evenings and weekends—making the experience more convenient and responsive.

✅ 2. Knowledge of Local Market

Local brokers have in-depth insight into neighborhood real estate trends, property values, and even municipal requirements such as real estate and property transfer tax rates and schedules. This expertise helps ensure your financing aligns with local conditions and costs.

✅ 3. Advocacy

Established local brokers can add real value when it comes to getting your offer accepted. Their reputation and relationships within the community often carry weight. A personal call from your broker to the listing agent—confirming your financial qualifications—can help reassure the seller and make them more comfortable choosing your offer.

Question 24

Do I need to be pre-approved for a mortgage?

Accepted Answer

Absolutely yes. Unless you’re buying from a friend or family member, most sellers won’t even consider your offer without proof that you can secure financing. That’s where a mortgage pre-approval comes in.

Pre-approvals are typically free and offered by mortgage brokers, banks, and credit unions. The process is straightforward if you’re organized. Here’s what it involves:

Credit Check: Your lender will pull your credit report.
Income Verification: You’ll provide pay stubs and W-2 forms to confirm your earnings.
Employment History: Lenders want to see stable employment.
Expense Review: They’ll assess your debts and expenses to determine how much you can borrow.

Once everything checks out, you’ll receive a pre-approval letter. This letter is crucial—it shows sellers you’re qualified and ready to buy, making your offer far more competitive.

Question 25

What is the one-stop-shop?

Accepted Answer

The one-stop shop is the marketing illusion that you’ll get the best deal for multiple services all in one place. In fact, your agent and/or their broker will probably ask you to commit to using the in-house title company when you're placing an offer on a house. It's not necessary to commit at this time. Ask for a complete estimate with all related fees and tell them you plan on shopping around.

The reality is that although it sounds good, when you compare transparency, service and price, you’ll likely get better value from an independent title company like ALT.

Question 26

Does title insurance cost the same everywhere?

Accepted Answer

No, it doesn’t. This is a false claim designed to fool consumers into believing it’s not worth shopping around for title insurance. While it's true that state regulated title insurance premiums may not be discounted, many title companies charge non-mandatory miscellaneous title service fees which can add up to $700 or more to the total cost of your title insurance.

Question 27

Will shopping around for title insurance delay my closing?

Accepted Answer

No—it won’t. Choosing your own title insurance company will not delay your closing. While some agents or lenders may suggest that sticking with their “preferred provider” is the only way to stay on schedule, that’s simply not true. This objection is often more about persuasion than practicality.

Agents and lenders who have financial ties to a title company may use the fear of delays to discourage buyers from shopping around. Since they can’t legally require you to use their affiliated provider, they rely on subtle pressure to steer you back toward their business interests.

Know Your Rights

Under federal law, you have the right to choose your own title company. At ALT Title, we work directly with your lender and agent to ensure your transaction stays on track. You’ll close on the same timeline—without the extra fees and with more savings.

Question 28

When do I shop for title insurance?

Accepted Answer

Now that you know that title insurance related fees and services don’t cost the same everywhere and you can save money, you’ll want to start getting familiar with what the estimated cost will be once you know your price range and approximate amount of your future mortgage.

Those are the two numbers that you’ll need to determine the cost of the title insurance policy. Once you have that information, it’s time to start getting estimates for title insurance and settlement services.

Question 29

When do I order my title search?

Accepted Answer

You’ll want to order title search once your offer has been accepted. Once you place your title order and the home inspection is clear, a good title company will have the search completed in 5-7 business days.

If you’re being told you only have 6 days after your offer is accepted to order title insurance according to the terms of the PA Agreement of Sale, don’t sweat it. There’s a poorly written clause that was added to the agreement by the PA Association of Realtors in an attempt to give their brokers a greater ability to steer business to their in-house title company.

If you need a few extra days to decide, let your agent know as it’s not a big deal. Furthermore, the clause does not give your agent the authority to take control and order title insurance without your approval.

Question 30

How does a seller credit work?

Accepted Answer

A seller credit is negotiated as part of your offer on the property. It is an amount of money that the seller will contribute to your allowable closing costs at settlement, and that could be a tradeoff for a higher offer price, an expedited settlement, or other concessions in terms of the sale.

A seller credit can also be used to buy down your mortgage interest rate for the first two years of your loan so that you can ease into home ownership with a lower interest rate and monthly payment.

If you are planning to ask for a seller credit or any other types of credits or grants, you must involve your lender before making an offer on a house. Your lender will need to structure your loan and your offer in a way that maximizes the total amount of all allowable credits.

Question 31

How do gift funds from family work?

Accepted Answer

Another option to reducing the amount of personal cash you’ll need to buy a new home is receiving gift funds from a family member. Unlike seller credits, lender credits or commission rebates, there are no limits to the amount of gift funds that you can receive towards the purchase of your new home.

Gift funds can be used towards closing costs and your down payment, essentially making it possible for you to buy a new house without touching your savings.

Gift funds can also be applied to a buy down on your mortgage interest rate.

Question 32

How do government grants for morttgages work?

Accepted Answer

Pennsylvania and/or the local government where the property is located will sometimes offer first time homebuyers, or low-income buyers, grants that can be used for down payment assistance, but there are usually some strings attached.

Government grants typically require you to stay in the property for a specified period of time in order for the grant to be forgiven. If you decide to move before that window of time, or if you add or remove someone from the title to the property, you may need to pay all or a part of the grant money back. Most grants show up as a lien against the property which remains in place until the maturity date.

Question 33

Do all agents offer their buyers commission rebates?

Accepted Answer

No, they don’t, but the smart ones will.

The idea behind the commission rebate is based upon an assumption that the seller is paying the commission to the buyer’s agent. Under that scenario, the buyer’s agent would rebate a portion of their commission to assist the buyer with their closing costs. Sort of like a thank you to the buyer for choosing them to be their agent. It’s also a smart business decision and will likely lead to future referrals.

Question 34

Avoid this common mistake when choosing a real estate agent-

Accepted Answer

If your goal is to reduce closing costs or receive a commission credit, be cautious about hiring the “featured” or “recommended” agent on large real-estate websites like Zillow or Realtor.com.

While these platforms are useful for finding homes, the agents promoted on them often pay referral fees that can reach 40% of their commission just for the introduction. That cost doesn’t disappear—it limits how much flexibility the agent has.

As a result, those agents are often unable to offer commission rebates, waive unnecessary administrative fees, or provide other cost-saving options at closing.

That doesn’t mean they’re bad agents—it just means their business model is more expensive.

Smart move: Interview agents directly and ask upfront:

Do you offer commission credits?
Are there admin or broker fees?
How do you help clients reduce closing costs?

The best deal usually doesn’t come from the highest bidder for your lead—it comes from the agent who puts your interests first.

Question 35

What is a buyer's broker?

Accepted Answer

A buyer’s broker is a real estate agent who is hired by the buyer to represent their best interests throughout the home buying process. When the buyer and agent sign a formal agreement, the agent takes on a fiduciary duty—meaning they are legally and ethically obligated to act in the buyer’s best financial interest.

This includes:

Putting the buyer’s needs ahead of their own
Disclosing all important information that could impact the buyer’s decision
Following all lawful instructions from the buyer

Having a buyer’s broker ensures you have a professional advocate on your side during negotiations, inspections, and every step of the transaction.

Question 36

How do I receive the rebate? Is it cash?

Accepted Answer

Commission rebates from your real estate agent or broker are considered as credits and need to be disclosed to your lender. With lender approval, the commission rebate can be applied as a credit against the amount of money you’ll need at settlement, which reduces your out of pocket expenses.

Or if the rebate puts you over the maximum credits allowed towards closing costs, your broker can write you a check once the transaction has closed.

Question 37

Do real estate commissions have to be based on a percentage of the sale price?

Accepted Answer

No, they don’t.

The traditional percentage based commission model, which dates back to the early 1900s, is increasingly outdated and fading in relevance. Without getting lost in the industry politics that kept it alive for so long, here’s our recommendation:

Whether you’re buying or selling, you may find yourself responsible for paying some or all of your agent’s compensation. Negotiate in actual dollars, not percentages.

Why? Because percentages distort the conversation. An agent might claim that “1% is insulting,” but the tone changes when that same 1% on a $500,000 home simply becomes a $5,000 fee. When you focus on real dollars, the discussion becomes clearer, more equitable, and grounded in the actual value of the services provided.

Bottom line:
Keep the negotiation in dollars. It leads to a more straightforward, good faith conversation that’s in line with the growing consumer push for clearer, more transparent compensation models.

	In-House Title Company	Independent Title Company (like ALT!)
Who recommends them	Your agent, builder, or lender	You choose freely (your legal right in PA)
Why they’re recommended	Part of a profit-sharing or referral arrangement	Chosen for transparency, service, and savings
Cost to you	Often higher due to referral fees and overhead	No administrative fees, no referral markups
Process & timeline	Same process, marketed as more “convenient”	Same process—with a more comprehensive service and less cost
Transparency	May lack a formal quote or full itemization of all fees up front	Complete and accurate title calculator available online - the same one we use in the office.
Potential savings	This business model is not built for saving you money.	Clients save an average of $500–$1,000+

Buyer-Side Title/Settlement Services	ALT	Typical One-Stop Shop
Settlement/Closing Fee	✅ Included	$495–$695
Document Preparation	✅ Included	$150–$250
Wire & Courier Fees	✅ Included	$50–$100
Notary Fees (if needed)	✅ Included	$25–$75
Real Estate Attorney reviews settlement documents	✅ Included	❓
Doc prep fee for future deed modifications/change in title	✅ Free for as long as buyer owns the property	$150–$250 each
Notary fee for future in-person services	✅ Free forever for the buyer(s)	$25–$75 each
	$0	$700–$1,100+

	Included in the one time title insurance premium
Accessible in-house attorney & experienced licensed title agents	✅
Draft the Agreement of Sale and other necessary addendums once all terms have been agreed upon	✅
No conflicts of interest with using affiliated title companies	✅
Perform a 60-year title search and prepare title insurance commitment	✅
Distribute the title commitment to your lender and all other parties	✅
Assist buyer’s lender in clearing mortgage conditions related to clear title	✅
Disclose and collaborate with sellers to clear potential title issues, outstanding liens, judgments and municipal taxes & utilities*	✅
Hold earnest money/deposit money in our escrow trust account and make sure it’s properly credited at closing	✅
Prepare the new deed transferring ownership (no charge to seller or buyer)	✅
Schedule your final settlement, send out settlement notices	✅
Collaborate with your lender to prepare and distribute your final Closing Disclosure and ALTA Settlement Statement	✅
Conduct closing at the location of your choice, explain and notarize all mortgage and related settlement documents	✅
Collect and disburse all funds according to the terms outlined on the ALTA Settlement Statement	✅
Record the deed and mortgage with your local municipality	✅
Issue final title insurance policies to the new property owner and lender	✅
Provide electronic copies of all settlement documents post closing	✅
No doc prep fee for future deed modifications (change in title vesting as a result of a life event for as long as the insured buyer(s) own the property)	✅
Free in-person notary services for life for the insured buyer(s)	✅
Additional fees to process your transaction:	$0

Title Clearing/Settlement Services	ALT	Typical One-Stop Shop
Order mortgage payoff, tax & municipal certifications (Cost of certifications are additional)	✅ $375	$395–$595
Deed preparation	✅ Included	$150
Courier and wire fees	✅ Included	$50–$100
Notary fees (in-person)	✅ Included	$25–$75
Total Title Clearing Fees for the Seller	$375	$620–$920

2026 Homebuyer's Guide to Savings

5 Smart Ways to Minimize Closing Costs & Maximize Allowable Credits

Most home buyers overpay at closing, simply because they don’t know what’s negotiable and what isn’t.

You'll learn how to:

Tip #1

Ask your lender for a closing cost credit.

Tip #2

You have the right to choose your title company - shop around and save.

Tip #3

Ask your real estate agent about a commission rebate.

Tip #4

Ask your broker to waive the admin fee.

Tip #5

Use credits, gifts, and grants to reduce or eliminate your cash due at closing.

Let your agent know you’d like to request a seller credit.

Make sure your lender is on board, as there are limits to how much seller credit you can receive.

ALT's Comprehensive Service for Private Transactions, For Sale by Owner

More Helpful FAQs

What to bring to final settlement, what to take with you when you leave.

Going with ALT was one of the best decisions I made as a first time home buyer.

ALT saved me a few hundred dollars.

I was introduced to ALT through my realtor.

Everyone was so great to work with at ALT.