Posts tagged "Title Insurance"

Do I need to purchase title insurance on my condo?

I am financing it through a bank.
Yes, I agree I should get it. My question is will the bank give a mortgage without it?

Yes, all bank require title insurance.

Title insurance guards against claims to title (eg. other liens against a property, proper chain of title) This is done to ensure that the bank is in first position (set by recording date a lien is filed, oldest first).

Therefore, should something happen, and the bank need to foreclose, the property value would not be diminished by someone’s lien being paid off before theirs.

Title insurance covers the lender in the event of an error, and another claim to title affects their collateral. (the title insurance for a lender is only for the loan amount).

Closing Costs Explained – Settlement Services, Title Insurance

Closing Costs Explained Visually is a 3-minute informative video that explains settlement services that take place at the end of a real estate transaction. The video communicates a general overview of title insurance in layman’s terms and is sponsored by Federal Title & Escrow Company, located in Washington, D.C. http://www.federaltitle.com

Duration : 0:2:44

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Should I get title insurance for a condo I’m paying cash for?

The only reason everyone gets title insurance is because 99.9% of home buyers need to take out a mortgage and mortgage companies make you pay for title insurance or they won’t give you the money. In my case, I’m paying cash for a 190k condo. Do I really need title insurance? The husband and wife that Im buying it from have owned the condo for 13 years. If they had title insurance on the condo, doesn’t that take care of finding out about all the previous owners? Can’t I just do a search on the husband and wife to make sure they have no liens on the property?

Absolutely. I don’t think you’ll find anybody who will advise you against purchasing title insurance, whether you’re paying cash or not. There could be liens on the property that you’ll never be able to find on your own, and there may be liens that the sellers aren’t even aware of. You could potentially lose your home just because you wanted to save a few thousand dollars. It’s not worth the risk.