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Old 09-21-2012, 07:33 AM
 
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what is title insurance?........not sure what the insurance of it covers......
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Old 09-21-2012, 07:39 AM
 
Location: Happy wherever I am - Florida now
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Title insurance is like other insurance policies in that you pay a premium (money) to an insurance company to protect you for a set of particular circumstances. In this case the insurance company would defend your interests in court should there be a discrepency, error in paperwork, or claim by another on your good title to your property.
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Old 09-21-2012, 08:10 AM
 
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The description that sgoldie gives is generically accurate but the real "value" of title insurance is not just for a court case. The title company works pretty hard BEFORE they agree to issue your "title guaranty" that there are NO existing liens of "title defects" on your property. The vast majority of these defects arise from a few major categories -- "mechanics liens" filed by firms that were not paid for work done on the home, disputes from neighboring property holders about the legal boundaries of your property, and parties to previous sales of the home/land that may not have been compensated for their ownership often through dissolution of marriage, proceeds from an deceased relatives estate or a dissolved business partnership.

Basically every lender will require title insurance to ensure that the value of the property as collateral is "undiminished". Even if you should buy a property for cash it would be foolish not to pay for title insurance (which is generally a one time fee based on value of the property and/or amount of work required to research title...) as the potential for some aggrieved party to materialize with a claim against your home/ land would be a nightmare...
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Old 09-23-2012, 11:36 AM
 
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An important thing to note about Title Insurance Policies, however, is the "Exceptions" to coverage. If you're not careful in determining the importance of those exceptions, they could essentially make your title policy worthless.
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Old 09-30-2012, 06:12 AM
 
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I know people who opt against title insurance. On a $2 or $3M home, it adds up. In my case my company paid for it, but I'd have considered skipping it as well.
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Old 09-30-2012, 06:29 AM
 
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Default I know of NO lender that would allow this and if you are a cash buyer...

...and you are spending $2 or $3M and you think you're saving anything by opting out of a title insurance that is unlikely to cost as much as even six months of your first years property tax then I can only imagine how much you'll spend on lawyers to defend some nut job claim against the property. I suppose if the millionaire buyer is a partner at a law firm he can throw his personal legal problems at some new hire and sorta get defended for free but that hardly seems ethical....


Quote:
Originally Posted by chicagotodc View Post
I know people who opt against title insurance. On a $2 or $3M home, it adds up. In my case my company paid for it, but I'd have considered skipping it as well.
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