Surf’s up! It’s a great time to have title insurance! There are a lot of great deals in the real estate market with REO’s and foreclosure sales. You can pick up an investment property or a primary residence for a bargain purchase price. Don’t be pennywise and pound foolish.
Just because you saved a bundle on the purchase price doesn’t mean you should go on a cheap streak and not buy title insurance. Regrettably the real estate industry has gone through some hard times, especially in the documentation of who owns the note. People think they’re getting a great buy, then it turns out the company they bought from did not have the rightful authority to sell it. The sale gets challenged in court and the new homeowners have to defend their ownership from somebody else’s error.
That legal defense is dang expensive!
Or it can be a smaller title problem, like a dispute over a property line. Maybe the neighbor’s survey puts the line six feet over the homeowner’s easement. That’s not as dramatic, but you still have to face a claim or litigation. Again: Dang expensive!
Title insurance pays claims or litigation costs if there’s a debate over a title. Doesn’t matter whether it’s a question of the entire property or a just a property line location, title insurance pays your legal fees to defend your ownership. It doesn’t give a discount towards legal fees—it pays them. Period.
With the current conditions of the documentation, we are likely to see more confusion over a property title both now and in the future, making this a great time to have title insurance.