Trulia Chica…, Other/Just Looking in Chicago, IL

Do you need title insurance if you are paying cash for a brand new home?

Asked by Trulia Chicago, Chicago, IL Mon Dec 3, 2012

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Not required but HIGHLY RECOMMENDED that it is obtained. If you cannot afford the Title Insurance, Survey or an Attorney then you shouldn't be purchasing a home.
1 vote Thank Flag Link Tue Dec 4, 2012
Title insurance should not be required on a cash purchase.
3 votes Thank Flag Link Mon Dec 3, 2012
You need to do a title search and I would disagree and say it is mandatory for you, especially as a cash buyer and especially knowing there has been work done recently.
There is massive exposure to you from mechanic's liens, as well as possible encroachment and previous title issues from when the property was only land.
With no lender you stand alone facing these issues, and it is beyond foolhardy to not have it in your situation.
1 vote Thank Flag Link Mon Dec 3, 2012
The two issues are unrelated.

When you buy a property you want to know that previous liens and challenges to your sole ownership of the property post-closing will be remedied without your having to spend money should they surface after you close.

Title insurance makes sure that not only do you have clear title but that future issues with title are handled for you as well.

You could theoretically buy without title insurance but unless you're literally being given the deal of a lifetime and have done your due diligence I think you are taking an unnecessary risk.
1 vote Thank Flag Link Mon Dec 3, 2012
A title policy is worth the money and new construction sometimes have mech liens to sort through.
0 votes Thank Flag Link Wed Jan 23, 2013
One sure does need Title Insurance to protect oneself from any
Liens against the property that a Seller himself may not be aware of.

Many times liens get recorded late, inspire of best efforts on the part of
The seller.

Best regards
Perry
Web Reference: http://www.ruthandperry.com
0 votes Thank Flag Link Tue Jan 22, 2013
Of course you do.

First off, it is the seller - the Grantor - who pays for title insurance. A warranty deed is a guarantee, and a guarantee has no value without financial backing, which is why we back our warranty deeds with title insurance.

Plus, if you are paying cash, then it's all YOUR money on the line. Could there be mechanic's liens, survey issues, problems with the chain of title? And if there are, do you really think you can go back to Buildem-Fast LLC for compensation?
0 votes Thank Flag Link Tue Jan 22, 2013
Definitely get title insurance for your own protection.
0 votes Thank Flag Link Tue Jan 22, 2013
Costs are significantly less expensive for cash buyers & regardless you ashould definitely get Title Insurance!
0 votes Thank Flag Link Tue Dec 4, 2012
yep.. for your own protection
0 votes Thank Flag Link Tue Dec 4, 2012
I am curious to ask you why you would not get insurance?
0 votes Thank Flag Link Tue Dec 4, 2012
Think of it like any other insurance. You are not "required" to have it, but it is in your best interest to have it.
0 votes Thank Flag Link Mon Dec 3, 2012
Dear Home Buyer.

While title insurance is not required, I feel it is a very bad idea not to obtain it.
Title insurance will protect you against any mechanics liens, defects, etc. against the “title” (your property). You would be penny wise and pound foolish in the end if you did not purchase it.


Manuel Brown, Broker
iMove
0 votes Thank Flag Link Mon Dec 3, 2012
The answer is no, but it certainly is a good idea. Title insurance protects you against many potential problems: faulty chain of title, defective deeds, mechanics' lien claims, judgment liens, unpaid taxes or assessments etc. Title insurance will reveal any problems with title and will protect you for the entire time that you own the property. Do not overlook the many benefits it offers.

Here is some general information that may assist you in making your decision: https://www.ctic.com/whatistitle.aspx


Rusty A. Payton, Broker
iMove Chicago
1225 W Morse
Chicago, Illinois 60626

773-856-6200 [Office]
773-856-6201 [Fax]
773-682-5210 [Mobile]

e. payton@iMoveChicago.com


http://www.iMoveChicago.com

blog: iMoveBlog.com
0 votes Thank Flag Link Mon Dec 3, 2012
No, and neither is a survey, but why owuld you not get them?????? The cost is only a few hundred $$ and for the title insurance the seller pays more than half of it.
0 votes Thank Flag Link Mon Dec 3, 2012
In Chicago its pretty standard to have it done with. This is not the case in other states.
0 votes Thank Flag Link Mon Dec 3, 2012
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