With so many upfront costs involved in buying a home, many first time buyers wonder if they should spent the money to get title insurance on the property. REALTOR® Eileen Smith of Tucker, GA says the answer is “yes”: “You paid an attorney to perform the closing, a title search has been done (you saw the fee on your closing statement), you received a General Warranty Deed at the closing, and you had to purchase Lender’s Title Insurance.
With so many upfront costs involved in buying a home, many first time buyers wonder if they should spent the money to get title insurance on the property.
REALTOR® Eileen Smith of Tucker, GA says the answer is “yes”:
“You paid an attorney to perform the closing, a title search has been done (you saw the fee on your closing statement), you received a General Warranty Deed at the closing, and you had to purchase Lender’s Title Insurance. Do you really need to spend the extra couple hundred dollars to purchase your own policy? Yes!
A home is the most important, and in many cases the largest investment you will ever make. You purchase homeowner’s insurance to protect that asset from wind, water and fire. Do you really want to take the chance of losing it because you refused to purchase a one-time, life of ownership policy that would protect you from fraud, mistakes and undisclosed ownership? No!
Title insurance will pay to defend you and your interest in a property against any lawsuit attacking the title. It will either clear up the problem or compensate you for your loss. The most common causes of title emcumberance include:
False impersonation of the true owner of the property Forged deed, releases or wills Undisclosed or missing heirs Instruments executed under an invalid or expired power of attorney Mistakes in recording legal documents Liens for unpaid estate, inheritance, income or gift taxes Fraud
An enhanced Title Insurance Policy might also protect you against encroachments, zoning violations, and pay your rent in the event of displacement, just to name a few.”
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Should You Purchase Owner’s Title Insurance?