Title Insurance? Buy it or not?

Question

We are closing on our 3rd property on the 23rd.  We have not purchased a new property in a 10 years or more so please forgive my ignorance.  One of the items we are being asked about is title insurance.  What are your thoughts?  Good investment or not?  Truly appreciate your input.

Marc Winter · Answer

Title insurance is an absolute MUST!  If some hourly-paid abstract researcher misses a $10k mortgage or lien on the property and you close on it, guess what?  You own the house AND the lien.  Not worth it to take a chance.

Dennis M. · Answer

In some circumstances on low end properties you don’t necessarily need to but not knowing your situation or what you are getting I’d agree with the others and say you really oughta get it

Tom Shallcross · Answer

@Steven McLarty - I agree w/@Kyle J. and @Scott Wolf.   If you are financing the deal, I would think your lender will insist on it as well.

Similar to other insurances in your life, the odds of needing it are low but the potential cost of not having it can be substantial.  There are items like unpaid taxes, mechanical liens you can look up yourself, but other items like recording errors, forged signatures (my title company actually said this was the biggest one missed by most title companies as even the best will not catch a forged signature),  ex-spouse making a claim...etc, can be insanely costly.

Kyle J. · Answer

I always buy it when I purchase a property, and I require my borrower’s get it when I’m loaning on a property. It’s relatively cheap insurance and peace of mind for what it costs, and if you ever need it you’ll be glad you have it.

Derek Guivehchi · Answer

@Steven McLarty it’s to cheap not to buy.

Steven McLarty · Answer

Thank you everyone!  Your input is very appreciated.  The risk of not having the insurance isn't worth it so we will buy!

Russell Brazil · Answer

At times I buy it, and other times I pass. However I fully understand the risks of not buying it, and can self fund correcting a title issue. I typically recommend to my clients that they get it.

Caleb Heimsoth · Answer

@Steven McLarty. Yes buy it

Scott Wolf · Answer

I may be biased (I'm in the industry), but protecting a purchase as large as a home or investment property is worth it in my opinion.

Title Insurance? Buy it or not?

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