What is title insurance and do you really need title insurance?

What is title insurance and do you really need title insurance?


Title insurance is exactly what it sounds like, it is insurance that the title to the property which you are buying is free from defects.

Do you really need title insurance?

Yes you do, if you are buying any sort of real estate.  Notice that I said “buying” this may not apply to strategies where you are flipping an option to buy a property or some other advanced real estate investor strategies.

If you are using some of the creative techniques to buy or control real estate then you may not need a title insurance policy.  You may just need a less expensive title check or an attorney certificate of title.  These two services can be purchased for less than the price of a title insurance policy.

All of these services are similar in that a professional has looked at the history of a title and found no defects or found defects and made you aware of them so that you can cure the defect before you close on the property.  The difference is that a title insurance policy will pay you if they missed a problem with a title, so that if the title has a defect which is discovered in the future, then you have some recourse.  That is why you NEED a title policy if you are actually buying real estate, and maybe you don’t if you are just controlling real property using some advanced investor strategy.


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