Would you buy title insurance

[Codewiz]

Closing on a house in about an hour. It was built in 1991. We are buying it from the original owners. The house is in a subdivision.

I don't see any reason to spend $100 on title insurance. It isn't like the house has had 10 owners.

Would you buy it? A lawyer friend of mine said he has NEVER seen it used but of course he recommends it to everyone(of course he does since he makes money off of it).

 

[isasir]

It's possible that they had some construction done on the house, perhaps a new marble countertop, for example, that they didn't fully pay off, thus there's a lien on the house.

 

[Megatomic]

I bought it. I'm the third owner of the house I bought, I didn't want to be held accountable for anything the previous owners did or didn't do.

 

[Garet Jax]

In poker sometimes a bad bed is worth it because of the size of the pot.

Presumably your house is worth much more than $100. Is it worth the risk of losing your house entirely because you didn't pay the $100.

 

[Farkshiatdamn]

You're a fool if you don't buy it.

 

[aphex]

BUY IT! Some guy on the forums less than two weeks ago ran into a problem with the title on the house he bought.

 

[Modeps]

Originally posted by: Farkshiatdamn
You're a fool if you don't buy it.

 

[Codewiz]

Originally posted by: Modeps

Originally posted by: Farkshiatdamn
You're a fool if you don't buy it.

I like all the, "you're a fool stuff". It is a lovely way to make an argument. I was wanting some examples. If someone on the forum had it come up I would like to see the thread.

 

[Mill]

100 bucks can prevent a major hassle. It is "insurance" and thus you DO NOT have to buy it, but the chances of there being some random lien or a problem does exist.

 

[Papagayo]

Originally posted by: Codewiz
Closing on a house in about an hour. It was built in 1991. We are buying it from the original owners. The house is in a subdivision.

I don't see any reason to spend $100 on title insurance. It isn't like the house has had 10 owners.

Would you buy it? A lawyer friend of mine said he has NEVER seen it used but of course he recommends it to everyone(of course he does since he makes money off of it).

$100 dollars? That's a steal..

It cost us $600 for out title insurance..

I think it's worth it.. We had problems before with our old house..

 

[Megatomic]

Yeah, ours was $250. $100 is a good price for the protection you get.

 

[Conky]

$100 is nothing and a cheap price for the peace of mind.

 

[JulesMaximus]

95% of the time you probably don't need it but for $100 I'd rather have it and not need it than not have it and need it. You could spend much much more if something pops up a few months down the road.

 

[Tifababy]

Part of our mortgage agreement stated that we had to have title insurance on our house. $100 is a steal. Definitely get it.

 

[bobbybe01]

I don't know ... I wouldn't spend too much on titty insurance.

 

[bunker]

I'm the first owner...I bought it and needed it. One of the subcontractors had a lein on the house that the title company didn't catch. Title insurance handled it.

 

[captains]

Originally posted by: Farkshiatdamn
You're a fool if you don't buy it.

 

[woowoo]

Buy it.
$100 is nothing.....

 

[Ausm]

Originally posted by: Farkshiatdamn
You're a fool if you don't buy it.

I agree'

Ausm

 

[Armitage]

Absolutely
Compared to the hassles you can get into ... big $$$ hassles ... it's well worth it.
Read the fine print though. There are different levels of title insurance that protect you from different types of problems. At the least, you want something that protects you from bank & mechanics liens that your title search might miss.

 

[Armitage]

Link to previous ATOT post mentioned above: Text

Some good stuff in there.

 

[dullard]

It was a $500 cost required by law for me. Take it for $100 and be happy.

 

[Thump553]

I'm in the business. If you have a mortgage (from anyone but mom and pop) its almost certain that the lender will require you to pay for title insurance to protect them. It's considered a necessity to be a prudent lender and to be able to resell the loan. The $100 is probably what it costs in addition to buy title insurance to protect you.

I've been practicing real estate law over twenty years and have only seen a half dozen title insurance claims. In those cases, though, both I and my clients have been very glad to have it.

Given the cost of your home, the cost of title insurance is trivial. Buy it. It also protects you from title claims after you sell the house (generally speaking, if you give a warranty deed when you sell the property, you are responsible to all subsequent purchasers for any problems which breach your warranty).

 

[DeMeo]

As was jsut stated, lenders typically require it. You don't buy it, they don't lend you the money. I've purchased properties for cash and still bought titel insurance.
You'd be surprised at the things that come up. Even if its a new house, the land can have a title defect.

You'd be foolish not to get the insurance.

 

[Triumph]

Someone in a recent homeowners thread said that their title insurance didn't even protect them in case a lien was brought against the house... if someone brought a lien the insurance company would only return your deposit! I don't know how true it is, but definitely read the fine print and be sure of what they'll cover.