Whenever you buy real estate, one small expense that you should always add to your total real estate purchase costs is title insurance. If you are going through a lender, they require title insurance that protects them from any problems down the road should problems arise with the title to the property. As a cash buyer, why should you have less protection than these lending institutions?
The short answer is you shouldn’t, and below are some good reasons why title insurance is a buyer’s friend.
Your ownership rights are protected
There is nothing worse than settling into your dream home, decorating it just as you intended, only to learn someone has made a legitimate claim to your property. Having a title insurance policy in place provides you with the peace of mind you need to fully enjoy your homeownership experience.
It costs relatively little
Buying a home is not cheap. When you add up all the costs before you go to closing, it can seem as if there’s no end to all the extra charges. And while there are some purchases where you can cut some corners to get good deals, that principle does not apply to home-buying.
Title insurance is a one-time expense that can save you tens of thousands of dollars in litigation and other costs. There just is not a single good reason for prudent cash buyers to skip buying a title insurance policy that covers their home.
Make prudent real estate choices
Gather all the information possible about the home you intend to buy, which includes having a legal or real estate professional run an abstract that guarantees the title is clear. That will be money well spent.
