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Do you buy title insurance?
Posted on 1/25/19 at 10:13 pm
Posted on 1/25/19 at 10:13 pm
I'm buying my first investment property with cash and need to decide if I want buy title insurance. There are no red flags to make me think it is an above average risk. I believe the odds of a very expensive dispute is very low but all I have found on Google is generic stuff. Just wondering what money board people do. I'm open to going either way at this point.
9
Posted on 1/25/19 at 10:53 pm to eelsuee
Yes. It’s relatively cheap compared to attorney fees you would incur if some nut sues because that was granpapas farm, and he was the secret illegitimate love child who should have inherited it. Or a neighbor sues over the boundary, etc.
That stuff is unlikely, but boy did it start happening when the Haynesville Shale hit. Many nutty cases were filed by wannabe descendants who claimed interests in land.
Pay a few hundred now, and be insured forever. Or risk paying $400 an hour for a couple of years to litigate with a nut.
That stuff is unlikely, but boy did it start happening when the Haynesville Shale hit. Many nutty cases were filed by wannabe descendants who claimed interests in land.
Pay a few hundred now, and be insured forever. Or risk paying $400 an hour for a couple of years to litigate with a nut.
Posted on 1/25/19 at 11:54 pm to eelsuee
Do you trust he lawyer you hired to run title?
Posted on 1/26/19 at 5:52 am to eelsuee
Buy it. Peace of mind.
Posted on 1/26/19 at 7:25 am to Jimmy2shoes
quote:
Do you trust he lawyer you hired to run title?
Title claims can arise even if the lawyer does a perfect job.
Posted on 1/26/19 at 7:53 am to eelsuee
Seems like the consensus is to buy insurance. If this is generally the the way to go then it seems like you don't have to worry about hiring a good lawyer to do the initial work? Just get whomever is cheapest + buy insurance. Or is that a bad assesment on my part?
This post was edited on 1/26/19 at 9:33 am
Posted on 1/26/19 at 8:30 am to Chuker
Title attorneys all cost the same pretty much. Buy the title insurance. Your probably wasting your money unless your one of the unlucky guys that gets some goofy shite happen. Then it is the best money spent in your entire life
Posted on 1/26/19 at 9:01 am to Chuker
Here's a link to the Other thread discussing it. See my post in that thread for a good summary of why you should get it.
Ehhh, I mean you'd still like for nothing to come up. Insurance or not, title claims can still be annoying at best, life ruining at worst. Ideally your title attorney catches everything he should and you never need the insurance (or the insurance catches the un-discoverable stuff). I wouldn't think it's worth it to skimp on the title attorney to save what? Maybe a couple hundred or less? But then have to file multiple claims because he missed stuff? I don't think the fee difference between title companies is big enough to not just pick the best one
quote:
it seems like you don't have to worry about hiring a good lawyer to do the initial work? Just get whomever is cheapest + buy insurance.
Ehhh, I mean you'd still like for nothing to come up. Insurance or not, title claims can still be annoying at best, life ruining at worst. Ideally your title attorney catches everything he should and you never need the insurance (or the insurance catches the un-discoverable stuff). I wouldn't think it's worth it to skimp on the title attorney to save what? Maybe a couple hundred or less? But then have to file multiple claims because he missed stuff? I don't think the fee difference between title companies is big enough to not just pick the best one
Posted on 1/26/19 at 9:31 am to eelsuee
It's extremely likely you will never need it. But if something happens, problems and costs will pile up with the quickness.
the cost of title insurance should not be the breaking point in an investment property purchase. If you are that close, look for another property.
the cost of title insurance should not be the breaking point in an investment property purchase. If you are that close, look for another property.
Posted on 1/26/19 at 2:00 pm to eelsuee
Thanks everyone for the responses.
Posted on 1/26/19 at 8:34 pm to eelsuee
Have a friend who paid cash for a lot and built a 400k house on it in BR, no title insurance. A year later, someone popped up and it turned out the claim was legitimate. He had to pay another 100k to keep his house.
In Louisiana, it seems the purchaser is screwed, not the illegitimate seller if a later title claim comes up.
Get the insurance.
In Louisiana, it seems the purchaser is screwed, not the illegitimate seller if a later title claim comes up.
Get the insurance.
Posted on 1/26/19 at 8:59 pm to eelsuee
For my rentals? Absolutely. Always.
Posted on 1/27/19 at 1:16 am to eelsuee
I'm an attorney who works in real estate. Trust me you want to buy Title Insurance, it's pretty cheap and worth it's weight in gold. Nothing is more unbelievable than having someone come in with a property issue because they didn't buy title insurance for a 100k plus investment.
Posted on 1/27/19 at 9:33 am to Shaun176
quote:
In Louisiana, it seems the purchaser is screwed, not the illegitimate seller if a later title claim comes up.
LA is a no redhibition state. Immovable property is sold "as-is, where-is". Basically, as a buyer you need to do your property inspections and do a good title search, because once the ink dries you can't go get your money back from the seller. If you want any shot at all of suing the seller you'd have to be able to prove they knew about the title issue and/or intentionally sold you the house knowing that an issue was going to come up...a very tough burden to prove.
It's generally a nice policy for sellers, as you don't want to be on the hook for every property you've ever sold (especially if you're an investor). Obviously it's a bit harsh for an unsuspecting buyer, but that's where title insurance comes in.
Posted on 1/27/19 at 7:38 pm to Neauxla_Tiger
Definitely get it. I’m battling a current lawsuit because of some eff up between the seller and the title company on a house I bought a year and a half ago. Luckily I have the title insurance so no impact on me, other than waiting for these 2 to settle things in court.
Posted on 1/27/19 at 8:05 pm to Htown Tiger
Don’t be a cheapskate dumb arse. It’s cheap for the protection you get. You ain’t buying a tv with the rip off protection plan.
Posted on 1/31/19 at 6:27 am to Skorzany
A La. attorney was just suspended two years because he faked deeds that ended up causing a nightmare for buyers.
That's the kind of thing the best title check in the world may not uncover. So get insurance.
Nola.com article
That's the kind of thing the best title check in the world may not uncover. So get insurance.
Nola.com article
quote:
Magee created fake quitclaim deeds from his company, Hickory Glade, that purported to convey to himself three properties, according to the charges.
***
Magee then sold the properties to others without disclosing to them the resulting defects in title, according to the disciplinary board. Those parties later sold to other innocent buyers who discovered they could not sell their property because of the title problems.
One couple suffered "extensive financial harm and emotional anguish" after their 2008 closing on their Abita Springs home fell through because of title problems, the disciplinary board's report said.
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