title insurance

what happens if i purchase property without title insurance? Doesn’t the “search” process turn up most of the liens anyway? How much trouble am I going to have reselling if any?

Howdy JBJR:

You may be fine. It is like a crap shoot. Sometimes you win and sometimes not. A search will show all current recorded liens and let you know who is in title. It will not let you know a lot of stuff too. Ex wives or hubbies can show up claiming title. The paint guy did not get paid and is owed thousands along with the AC gal. A will did not get probated properly and any number of things may come up.

It is a risk you may take is you have nothing in the property like in sub2’s where you take over the loan with only perhaps a few hundred down. You are risking little cash and there was more than likely a policy bought when the current owner bought the property. Still a calculated risk if you spend much time managing the property for years to find out there are title problems.

Hope this helps a bit LOL

Thanks Ted, it was helpful, my question stemmed from the fact that I closed on a few properties and when i read the title insurance policies (mailed to me about 3-4 weeks after closing) there are all these exemptions that the insuranc company saus they could verify, so they are not insuring against this items. I thinking what the hell I paying a couple grand in title insurance if they not covering everything…

But I still would like to know if I would have trouble selling the property if I just transfer when I purchase if I don’t use title insurance, ( using cash to purchase)

Howdy JBJR:

No problem selling if you have no insurance, unless a new lien or other problem arises. That 2 grand could seem cheap to you if title disputes come up. Sure it is expensive but just cost of doing business. Get the seller to buy the policy next time


You probably right, I should just swallow it. I guess I just bitching about the extra people with fingers in the pot every time I buy something

Howdy JBJR

Me too I like to cut off as many fingers as I can

Take care