Should A Buyer Purchase Title Insurance?
July 03, 2018
YES…YES…YES…always purchase title insurance. Purchasing an owner’s title insurance can provide the new homeowner with “peace of mind” as it relates to the title involving a property. The fee is a one-time fee that the buyer pays at time of purchase. You never pay this fee again as long as you own this property. When you sell, the new buyer will purchase his/her own owner’s title insurance policy. Your title insurance will not transfer to the new buyer.
A title search will be conducted to search:
The chain of title, the legal description, liens and judgements. See if property taxes have been paid and that they are current.
The main reason buyers decide not to purchase title insurance is to save money. I have heard this excuse numerous times since I was licensed in 1991
Personal testimonial for purchasing title insurance. Shortly after moving to Tennessee in 1990, I purchased a property. I obtained financing. And a title search was completed in order to obtain financing. The search showed a clear title…and I purchased the property. Two years later, an issue arose which would require my hiring an attorney. Imagine the expense I would have incurred during 2 years of litigation. Since I had an owner’s title insurance policy, I called a local attorney. It did not cost me any money. I was very thankful that I had an Owner’s Title Insurance Policy.
