Title Insurance – To Buy or Not to Buy

  
Brookhaven

2535 Brookline Circle

$479,900

• Foreclosure home! John Willis custom design below market value!
• Gorgeous five bedroom, four full baths in gated community
• Gourmet Kitchen, with beautiful designer cabinets, solid surface countertops
• Guest bedroom on main level, plus three additional rooms upstairs
• Enjoy your own sitting room in the master retreat with fireplace
• Fully finished basement with second kitchen, bedroom and bathroom
• Walk to all the shops off Dresden – wonderful area, fast appreciating!
• Don’t let this opportunity pass by!
• View the property at www.castlesbychrissy.com 

****If you know a friend, family member, or coworker who would like their home featured as the "Tuesday Tour" email the details to chrissy@castlesbychrissy.com****

Tuesday’s Tip

Should You Forego Title Insurance?

Buying a new home is the single largest financial investment for most families but there are risks. What if the seller doesn’t really own the home? What if there are mortgages, judgments or liens against the property? What if the property taxes have not been paid for several years? Title insurance protects you against these types of risks and against the risks of human error. It is your basic home ownership protection.

Title insurance protects you against future losses arising out of events that have happened in the past. Unlike other types of insurance, title insurance is paid when the policy is issued and is good for the life of the policy. The premium required is based on the amount of the sale or the mortgage.  For example, an owner policy may run somewhere around $3.50 per $1000.00 of home value.

Buyers can be tempted to save money by foregoing a title search but the risks are heavy because title problems are many and varied. Some typical problems that title searches have uncovered include a second mortgage on a home that does not appear to have been paid off. The sellers borrowed money years ago from a parent who insisted that a second mortgage be recorded. The loan was repaid but the title wasn’t cleared. Another typical problem occurs when an owner had work done on the property but for one reason or another failed to pay the contractor in full. The contractor filed a mechanic’s lien on the property and it has never been removed. These are liens on the property and if you take title to a property without clearing these liens or encumbrances, you may be responsible them.

The Real Estate Report
Volume 3, Issue 8