Title insurance is an important consideration when buying your home; however, even the most seasoned, educated real estate broker is susceptible to myths about title insurance. Here are just a few of these myths dispelled.
Myth 1: Title Insurance Policies are Too Expensive
There are a variety of providers with basic packages that should do what they’re meant to do. Having said that, it’s important for you or your client to understand what kinds of protections are important when shopping for title insurance. Primarily, you want to protect from being impacted by pre-existing, unknown title issues, such as: document forgery, liens, deed errors, undisclosed heirs, etc.
Myth 2: Title Insurance is Required
While lender’s often require lender insurance, title insurance is not legally required. Having said that, according to some sources, as much as 25% of property deeds include some sort of error, rendering the validity of the deed itself potentially contestable in a court of law. Given this, although title insurance is not legally required, in a significant number of cases, it’s a good idea.