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Updated about 9 years ago on . Most recent reply

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2,997
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1,252
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Shawn Ackerman
  • Real Estate Entrepreneur
  • Mid West, East Coast
1,252
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2,997
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Title Insurance a MUST or a BUST

Shawn Ackerman
  • Real Estate Entrepreneur
  • Mid West, East Coast
Posted

If the inspection goes well tomorrow I will be buying a property from a wholesaler(cool person) and I wanted to know if I should get title insurance.  I'm buying the property cash and will most likely be putting a mortgage on it after purchase(unless i hit the lotto first).  I wanted to know two things.

I'm going with the wholesalers title company.  She seems to run a tight operation but I'm still a little apprehensive.  Thoughts?

Should I get title insurance?

Well three questions lol!!!  While doing my due dilligence i found out that the seller owes back money to the local water work to the tune of $1,500.  I was told by the representative that the back money was added to the taxes for the 2016 tax year(No goood) and the outstanding amount stays with the property.  I say all of that to say, Is this the job of the title company to make sure this is resolved before the transfer takes place i.e. closing or do I need to add this as a contingency in the contract?

Thanks for the HELP!!!!!!!!!!!!!!!!!!!!!!

  • Shawn Ackerman
  • Most Popular Reply

    User Stats

    119
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    David O
    • Investor
    • Detroit, MI
    64
    Votes |
    119
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    David O
    • Investor
    • Detroit, MI
    Replied

    I used to work for a title company dealing with all sorts of title issues-100% yes, get title insurance. Regarding title issues - you won't get title insurance without clear title. So any title defects (liens, judgments, deed issues) will be resolved with the transition. Either paid by seller or you depending how you have it set up.

    Title companies use large title underwriters for title insurance (Fidelity, First American, Stewart), so any title issues when you go to refi or sell will be insured through them. With title insurance you are 100% protected. 

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