Quote:
Originally Posted by sail33or
I have a Lawyer friend who told me he started a Title Insurance Company because it was like taking free money. The premiums far exceed the rare cases of Title Defense. He said if you actually read the fine print (which no one does) just about every conceivable thing that could happen is excluded.
Then there is the ultimate lawyer weasel clause that specifically states that anything that the Title Company could not have known is excluded. It is actually very easy to do a Title search yourself going pretty far back. But yes, Indians, squatters, Spanish Explorers could come back and claim Title.
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I think that is true for just about any insurance you buy. But, over the years, you will probably spend more than 10 times as much on homeowners insurance as the one time title insurance cost. Although, I agree that the risk of a defective title on a new house is very low.
And, based on the amount of money spent on television advertising for auto insurance, I think that is probably a lot more profitable then title insurance.