Is title insurance worth the extra cost and paperwork? In a word, YES! Title insurance may not be the most talked about aspect of a property transfer but it is something that is hugely important. In a perfect world we would not have to worry about whether or not the person selling the home has the right to do so. They would have clear and free title to the property, enabling the swift transferrence of the property. It is unfortunate that we don't live in a perfect world. Today's real estate market has seen the gamut of real estate scams that are focused on title issues. Of course there are also more innocent issues with title, but those are not the ones that typically get noticed.
Title issues that catch public attention are the scams that are uncovered by police investigation units. Some go so far as to steal the identity of a home owner and simply sell the home out from beneath them. It seems unlikely that such large-scale identity theft would be possible but indeed it is. This is where title insurance comes into play. Essentially title insurance protects you as the buyer from issues with the title of the property. The insurance company will do a title search with the additional idea that they will pay any costs resulting from an error in the search. Title insurance protects the new owner of the home in the event that another claimant to the title of the property arises. If such a thing should occur the insurance will cover the legal costs and deal with the cost of the home in the event that the home is lost. In regards to new construction homes this will not be as much of a concern as it would be with a home that is 30 years or older. There can be a lot of action on a property's title over the years so title insurance is a smart choice when buying a home. Ask yourself, "can I afford to take a chance on this?"
