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Title Insurance
Posted on 7/2/09 at 8:35 am
Posted on 7/2/09 at 8:35 am
Closing on my new house today is title insurance worth buying or is it a scam?
3
Posted on 7/2/09 at 9:58 am to TEABAGTEBOW
yes. like any other insurance. Seems like a lot of money til you need it.
Posted on 7/2/09 at 9:59 am to rmc
yup. And there are reasons real estate law carries the highest E&O coverage. Very easy for mistakes to happen or liens to be missed.
Posted on 7/2/09 at 10:16 am to TEABAGTEBOW
I didnt buy it on my first house. Thought it was BS. When I went to sell, the title was FUBAR and it took a month to track down previous owners and get affidavits. I would highly recommend it.
Posted on 7/2/09 at 10:22 am to TEABAGTEBOW
Like the others implied, usually it's just throwing away money. Unless, of course, it isn't. From what I understand it's unusual but it does happen from time to time, which is why most mortgage lenders require it even for a refinance.
For example, the seller might have had major remodeling done on the property and failed to pay the contractor, so the contractor puts a lien on the property to make sure the owner can't sell the property and move to the Cayman Islands.
For example, the seller might have had major remodeling done on the property and failed to pay the contractor, so the contractor puts a lien on the property to make sure the owner can't sell the property and move to the Cayman Islands.
Posted on 7/2/09 at 1:08 pm to prplhze2000
quote:
Very easy for mistakes to happen or liens to be missed.
It's not just missing things. Let's say that there was a succession in the chain of title and one of the heirs was ommitted, or there was a forgery in the chain, or some other mistake not apparent from the public records at the time of closing which leads to a unmarketable title, the closing attorney is off the hook. The purchaser would have to go after the seller, if they can find them. Title insurance covers this scenario.
Another thing is that an attorney is only liable for malpractice for three years, so after that time, we are off the hook (as is our malrpractice insurer). Title insurance covers you as long as you or your heirs own the property.
Finally, know the difference in title insurance. If you do get permanent financing you will be required to purchase lender's covereage, but not owners (for you) coverage. However, I highly recommend that you do for the reasons above. Lender's insurance only covers the lender if they don't have title sufficient to foreclose on.
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