Do you still need title insurance if you're paying cash for a brand new home?

Asked by Trulia Brooklyn, Brooklyn, NY Fri May 3, 2013

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Wed Nov 6, 2013
Especially then because there isn’t a lender in front of your equity that will fight to protect their mortgage position so you don’t get free legal assistance. If that isn’t convincing enough just ask yourself why do lenders require it at least up to their loan amount?

Jim Simms
NMLS # 6395
Financing Kentucky One Home at a Time
I answer questions about financing real estate based on my decades of experience dealing with mortgage underwriters. This answer is my personal opinion, has not been reviewed or approved by the company I work for. I do not offer legal or tax advice, if you need answers from an attorney or CPA find one knowledgeable in your local market.
0 votes
Michael Denn…, Agent, Queens, NY
Wed Nov 6, 2013
No, I don't believe it's required for private cash transactions. But of course, you should consult and attorney. And as my colleagues have suggested it may be foolish and costly to close without it. In the event a issue comes to light after your closing, you could easily end up paying 1000s or even 10s of thousands to resolve same.

I value your opinion, please hit best answer or thumbs up, if my reply was helpful. All the best.

Michael Denniston
Senior Mortgage Banker
NMLS# 24076
The Federal Savings Bank
Direct Lenders. All 50 States
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Bev West, Agent, Greeley, CO
Mon Nov 4, 2013
It is not required, but I would highly recommend it.
0 votes
Scott Godzyk, Agent, Manchester, NH
Wed Jun 12, 2013
It is often the least expensive insurance you will purchase compared to the risk of needing it and not having it. 1 hour of lawyers fees is often more than the cost of a whole policy
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Jennifer Say…, Agent, Brooklyn, NY
Wed Jun 12, 2013
Consult with your attorney, but if it were me, I would get t title insurance. Compared to the price your spending on purchasing the home, whats a little extra to protect you in case a problem arises in the future. When a persons sells their property, they must deliver marketable title to the buyer. Title insurance protects you by ensuring the home you are buying did in fact belong to the seller and is marketable, meaning free and clear of claims from outside parties. If you buy the home and years from now, someone pops up and claims they are the owner of the home, title insurance would protect you. This is especially true if you are buying a home that is registered to a trust. If you need any assistance, please feel free to contact me.

Jennifer Sayad, Esq.
NYS Lic. Real Estate Assoc. Broker
Neuhaus Realty, Inc.
Direct: (917) 499-9832
Fax: (718) 987-3225
0 votes
Ann Zemaitis, Agent, 10013, NY
Fri May 3, 2013
I would advise you to consult with your attorney, but my personal understanding of title insurance is you don't want to be without it. My mom would say, "don't be penny-wise and pound foolish". The reason is because it guarantees that the title to the property is free and clear and there are no prior claims to it or its ownership. Would you really want to buy a home for several hundred thousand or millions only to find out it belongs to someone else in the past legally? Title insurance would cover this, is my understanding. I've always gone with it personally, though, as I said professionally consult with your attorney. They'll likely say the same.
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