Escrow & Title

A Pennsylvania title insurance company that is asked to insure a property where the previous transfer was a sheriff's sale should:

AAutomatically refuse all such properties
BCarefully examine the foreclosure proceedings for compliance with Pennsylvania law before insuring✓ Correct
CIssue a standard policy since sheriff's sales always produce clean title
DRequire the buyer to waive all title claims

Explanation

Title insurance for properties acquired at sheriff's sale requires careful underwriting — the foreclosure must have been conducted in compliance with Pennsylvania's judicial foreclosure requirements, proper parties were served, required notices were given, and the confirmation process was properly completed. Defects in the foreclosure process can impair title.

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