Is Title Insurance Necessary?

[Pharmacist Amanda Member Find all posts View Profile Close Pharmacist Amanda]

Chart TItle Insurance_Basic Vs Advanced.pdf My husband and I are closing on a home in the next few weeks.

Purchase Price: $792k
HOA community
2 Previous Owners
Built in 2004 by regional building company

Our title company is offering:
Enhanced Package: $2197.00
Basic Package: $1555.00

Do we really need this insurance? Is this one of the "got to haves" like life, auto, home, health and disability insurance?

Thank you in advance,
Amanda

[CordMcNally Moderator Find all posts View Profile Close CordMcNally]

It's one of those things that you most likely won't need but I wouldn't chance it. I'd be curious if anyone here has had or knows of somebody that has had issues.

[Peds Member Find all posts View Profile Close Peds]

i assume you mean buyers title insurance. yes we got. yes it feels like a scam. but the house was > 50 years old so who knows ....

[billy Member Find all posts View Profile Close billy]

whats the difference between the basic and enhanced package? (just curious)

[Cubicle Other Professional Find all posts View Profile Close Cubicle]

In NJ, my lawyer would not close my house purchase if I did not get title insurance. And he was not involved with the company selection, so no financial interest there. And I hate to say it like this, but even the enhanced package is only 0.27739898989898989898989898989899% of the home's purchase price ($2,197 / $792,000). I would at least get the basic package.

[Tim Member Find all posts View Profile Close Tim]

A lender and any future lender will require a lenders policy. A property lien is a legal claim on assets that allows the holder to obtain access to the property if debts are not paid. It’s amazing in any dispute how fast a lien can get filed, no so amazing when the release filing is low priority.

“It will include the amount of taxes owed and who they are owed to. A title search will also outline whether there are liens or special assessments against the property and who they are owed to. ... Finally, a title search will outline any restrictions or easements on a property.”

[EntrepreneurMD Banned Find all posts View Profile Close EntrepreneurMD]

Title insurance covers you for title problems that may be discovered after the title search. That can include unknown liens, unknown easements, illegal deeds, errors in the public record, forgeries, boundary disputes, an undiscovered will if you buy from the family of the deceased, etc.

[Steven Podnos MD CFP Member Find all posts View Profile Close Steven Podnos MD CFP]

Title insurance is vital. I've personally had title insurance pay for the entire cost of a rental home that ended up having a "bad" title after purchase. As noted above, it is a small percentage of the cost of the property and can avoid a large loss (the basic premise of insurance).

[G Physician Find all posts View Profile Close G]

Title insurance is vital. I've personally had title insurance pay for the entire cost of a rental home that ended up having a "bad" title after purchase. As noted above, it is a small percentage of the cost of the property and can avoid a large loss (the basic premise of insurance).

Wow. Are you comfortable sharing details?

[Pharmacist Amanda Member Find all posts View Profile Close Pharmacist Amanda]

Thank you all. Appreciate the insight.

[Pharmacist Amanda Member Find all posts View Profile Close Pharmacist Amanda]

whats the difference between the basic and enhanced package? (just curious)

I edited the original post with a PDF link, page 2 has the chart of the differences.