title opinion vs title insurance

title opinion vs title insurance

Real Estate Consultant · Minneapolis · Member since 2009 · 60 posts · 8 votes

I've used attorney title opinions instead of title insurance in the past - however buying a foreclosure I'm MORE concerned about undiscovered liens or clouds on the tile.

In Minnesota an opinion is a fraction of the cost of insurance.

Anyone else used attorney's opinions - what clouds on title could they miss?

Is there another way to save on tilte insurance? Thanks

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  • Manhattan, NY · Member since 2008 · 801 posts · 61 votes
    17y
    Originally posted by Tim B:
    I've used attorney title opinions instead of title insurance in the past - however buying a foreclosure I'm MORE concerned about undiscovered liens or clouds on the tile.

    In Minnesota an opinion is a fraction of the cost of insurance.

    Anyone else used attorney's opinions - what clouds on title could they miss?
    Almost anything. The reason it is cheaper is the liability to the one giving the opinion is nill.

    Title insurance, like all insurance, is never considered expensive when you need to file a claim.

    I always buy title insurance. No exceptions.

  • Real Estate Consultant · Minneapolis · Member since 2009 · 60 posts · 8 votes
    17y

    This is a cash purchase so no title insurance is required.

  • Manhattan, NY · Member since 2008 · 801 posts · 61 votes
    17y

    Title insurance required by a lender ONLY protects them. If you want protection you must get a buyer's policy too.

    Always, always, always get a buyers title insurance policy, even if the lender doesn't require it or no lender is involved. It is not very expensive.

  • Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
    17y

    Typically the seller pays for the new owners title insurance. The buyer only pays for the lenders title insurance policy.

  • Manhattan, NY · Member since 2008 · 801 posts · 61 votes
    17y

    Often, but not universally true.

    The cost is small though, get the policy.

  • Real Estate Consultant · Minneapolis · Member since 2009 · 60 posts · 8 votes
    17y

    In my situation, a cash purchase, the buyers title policy is calculated based on the full purchase price(no lenders policy) - over $1000.
    Tilte opinion $125

  • Manhattan, NY · Member since 2008 · 801 posts · 61 votes
    17y

    Okay, well, you seem to have talked yourself into your choice.

    Personally, I think it is a mistake to take that kind of risk. But, that is what makes this country great. We each get to make our choices from the options before us and accept the consequences of those choices.

  • Indianapolis, IN · Member since 2008 · 759 posts · 185 votes
    17y

    This is not an area to cut corners as an investor.

  • Will BarnardPro Member
    Moderator
    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    17y

    I second and third the advice. Get the policy. For the minimal cost (if that cost is 1,000, it is still minimal compared to the purchase), get the policy. You NEVER skip this step/cost.

  • Real Estate Consultant · Las Vegas, NV · Member since 2009 · 26 posts · 0 votes
    17y

    I think title insurance is a must. I purchased a bank owned (foreclosure) and when I went to sell it, I found that there had been a mistake by the title company for the bank and it looked like it could turn into a nightmare. I simply went back to the title company and said "This is your problem, fix it." They did and I sold the property for a nice profit. As a real estate broker I have seen several other properties that the title companies had to fix. I also know of one property that the new owner is going to have to fix some improper title matters and it doesn't look good. Get title insurance!

    However, sometimes you can save money.

    1. If you are first time investor and actually a first time buyer, many title companies offer first time buyer discounts.
    2. In many states title companies have different rates, so feel free to shop around.
    3. If the current title policy was issued recently (recent depends on the company - 6 months to 10 years), there may be a discount.
    4. In some states, title companies will discount there rates to clients who buy multiple properties.
    5. Sometimes you can purchase a policy that will allow you a special rate if you resell the property within a certain time frame.

    I used to shop around and save money for my clients and I also got my favorite company to match lower rates just to get the transaction.

    A good real estate agent in your area can probably give you some good advice -- but remember -- it is your money - so you may want to make a few phone calls which can really make sense and save you money.

  • Member since 2009 · 499 posts · 117 votes
    17y

    Okay IF you really wanna save money,,,I will give you MY opinion for 124 bucks,,see the savings?? Ever try to sue an attorney for his opinion??successfully??? Thats why title insurance has come to be instead of those stupid opinions,,they are like noses,every body has one (or more)

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