(EMAILWIRE.COM, July 11, 2013 ) Taylorville, IL -- One question that buyers commonly have is whether they need title insurance when purchasing a home. If you are taking out a mortgage, the answer is easy enough yes. Lenders require the purchase of title insurance when a buyer is borrowing money for a home. The insurance reduces the risk to the lender if there are claims against the title presently or in the future. The cost for title insurance is generally minimal.
If you are paying cash, the question becomes a little more complicated. On new construction, the risk is minimal because nobody has owned the home before. However, there may be risks associated with the builder and former owners of the land. It may not be necessary; it depends on your risk tolerance. A previously owned home carries more risk from previous owners. Title insurance offsets this risk by providing protection against claims to the property that are not necessarily on record.
A few years ago, a buyer purchased a large apartment building in Virginia. The buyer also purchased title insurance and collected on it when the wife of the seller claimed she did not approve the sale. The wife had a claim against the property of the husband. This particular buyer was very glad he had purchased the title insurance.
When it comes down to it, it depends on the buyers financial situation and risk tolerance. If legal fees and the potential costs of litigation would be devastating to the buyer, the present cost of title insurance is well worth the expense.
About SpurlingTitle.com
Spurling Title, Inc. (http://www.spurlingtitle.com/) opened its doors in 1995 with the goal of providing efficient, friendly service to all customers. We provide quality land title services, escrow and closing services, and 1031 exchange springfield in Christian County, and surrounding counties in Illinois.
Customer Service
217-824-3899
news@postpressrelease.com
Source: EmailWire.Com![]()
If you are paying cash, the question becomes a little more complicated. On new construction, the risk is minimal because nobody has owned the home before. However, there may be risks associated with the builder and former owners of the land. It may not be necessary; it depends on your risk tolerance. A previously owned home carries more risk from previous owners. Title insurance offsets this risk by providing protection against claims to the property that are not necessarily on record.
A few years ago, a buyer purchased a large apartment building in Virginia. The buyer also purchased title insurance and collected on it when the wife of the seller claimed she did not approve the sale. The wife had a claim against the property of the husband. This particular buyer was very glad he had purchased the title insurance.
When it comes down to it, it depends on the buyers financial situation and risk tolerance. If legal fees and the potential costs of litigation would be devastating to the buyer, the present cost of title insurance is well worth the expense.
About SpurlingTitle.com
Spurling Title, Inc. (http://www.spurlingtitle.com/) opened its doors in 1995 with the goal of providing efficient, friendly service to all customers. We provide quality land title services, escrow and closing services, and 1031 exchange springfield in Christian County, and surrounding counties in Illinois.
Customer Service
217-824-3899
news@postpressrelease.com
Source: EmailWire.Com