Title Insurance

[Alan L. Weeks]

I'm buying a condo converted in 2007 from a 3 family rehab in the state of MA with cash.  Trying to decide if I need title insurance.  Anyone have any guidance on what to look for after the title search is completed that might suggest more or less risk?  

[Chris Mason]

@Michael C Gregory - Yup that's a type of insurance policy. I know it exists, but don't know a lot about it. Call your go to insurance gal.

@Alan L. Weeks - Absolutely get title insurance. The very first home I ever purchased, two weeks after I moved in I got something in the mail addressed to MY NAME saying that I MYSELF hadn't payed the garbage bill in 6 months and they were going to put a lien on the property. I'd only owned the place for like a month, but the city was saying that I PERSONALLY owed this and was responsible, including late fees and accrued interest! There was a scheduled court date that I (again, MY NAME was on this, not 'current owner' or 'resident'!) was expected to appear at, and everything.

You can do all the title searches you want, you're not going to find paperwork evidencing just cause for a lien that's sitting in someone's desk and hasn't been filed yet. Especially if you're buying distressed properties, you have NO IDEA what bills the previous owner was not paying aside from her or his mortgage. For all you know, there's $500k in IRS debt out there (the most I've seen in IRS liens was $900k fyi - long story involving a family member who as a shady CPA).