Title Insurance. Yes, No? What Do You Suggest? Why?
Hello,
Title insurance...
If I'm selling conventionally (via a realtor) a home that I took Subject to, do I really need title insurance, or can I just provide a warranty deed, being that that is what I have?
I'd just pay the title co. their fee for doing a title search; then the County its transfer tax and the State's tax proration.
Let me know what ya think.
Thanks,
OTW :-D
I'm not sure if I can offer you a good opinion because title insurance is illegal in Iowa! Although there is a decent move to bring it back, the state realized some time ago that title insurance companies rarely pay out and fix problems.
Anyway--we also still use abstracts so the first thing I do is get the abstract updated. I then rely on an attorney's title opinion as to the quality of title.
The error and omissions insurance policies that the abstract companies and attorneys carry cover any problems that come accross.
Iowa does have a "title gurantee program" which is basically government sponsored title insurance. The big move to make title insurance legal is because of this monopoly the state has.
A lot of the guru's preach to get title insurance. Frankly I have no idea what it costs but if you can pick it up for a few hundred bucks it probably is worth it. It all depends on the level of trust you have at your title company. The biggest thing is to provide your seller with what is "normal. so that there are no problems. When buyers are buying from professionals any problem with title can make them leary.
GOOD LUCK
do you need title insurance?
Well do you need car insurance ?
same answer for both and same reason why
LAW SUITE.
I seen the result when someone has NO insurance.
Be carefull
i know that lock says, when doing a title search to search as far back as the last insurance policy. does this mean the last title ins policy? and if the previous owners had title ins then would i need a new policy? by the way this would be sub2 deal.
The title search gives you a sense of security that there are no unexpected surprises with the title. The last title insurance policy insures the title until the present owner acquired the property. You want to have the title search done to ensure that the new owner hasn't had something done to the title that would prevent you from delivering good title to any future buyers that you find. If you are satisfied that title is ok when you acquire the property then don't get title insurance. Your buyers lender will most likely require a title insurance policy be in place when they fund the deal.
Jeff