Thursday, February 28, 2019 / by Andy Mandel
Today I’m joined by Paul Mandel, title attorney, and owner of Capital Abstract & Title (and also my father), to answer two very important questions: What is title insurance, and do buyers really need it?
What is title insurance?
Essentially, title insurance is an insurance policy that ensures that you have clear title to your house and that there are no other owners who can lay claim to it or any mortgages, liens, or encumbrances on it. If you don’t have title insurance, you guarantee these things.
If you buy a property without title insurance, you don’t really know what you’re buying because a title search hasn’t been done on the property, and there could be prior encumbrances from prior owners of the property.
Do buyers need title insurance?
Absolutely. While it’s not legally required of you to get title insurance, closing agents won’t help you close on a home without it because they want to make sure you’ll be able to sell the home down the line without any issues.
In terms of cost, you can expect to pay $5.75 for every $1,000 worth of title insurance coverage. If you have $100,000 worth of coverage, for instance, you’d pay $575 for it. Obviously, your premium can go up based on the purchase price of your home.
I like to refer to title insurance as an invaluable asset because of the peace of mind it affords you when you buy a home. It protects what’s likely the largest investment you’ll make in your lifetime.
If you have any more questions about title insurance, you can give Paul a call at (954) 344-8420.
As always, if you have any other real estate questions for me, don’t hesitate to give me a call or send me an email. I’d be happy to help you.