Quote:
Originally Posted by skyguy79
I think you're missing my point, being that even the clearest of titles and the best of legal minds cannot forsee the forseeable or research for what was created prior to governmental records being kept... and no malpractice insurance is going to pay for any such incidences. Also, what makes you think that there will be a law firm still existing or any malpractice insurance you're refering to 20 years down the road any more than there will be that title insurance company? If betting on this, I'd certainly not put my money on the law firm existing and the title insurance company not - come 20 years down the road!
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The law firm would not have to still exist.. you would sue the lawyer and he would notify his insurer.... so it is an insurance carrier either way.. but I would have an abstract and opinion that I could examine and analyze before I closed.. information is always better than just an insurance contract... and the title opinion is usually not much money.. $100 or so.. because if there is a root of title law, you look at the abstract, find the root based on the sales and time periods, and it usually is pretty obvious if the seller has good title.
I have no problem with title insurance if you think you need it for peace of mind.. but realize all you are doing is paying a pile of money to an insurance company for their promise to pay IF something unlikely happens, and the right to sue them if they dont pay,, all assuming they are still in business years or decades later. I would rather have the title researched, have an experienced real estate attorney look at it and, and show me and put in writing why the seller has good title.
Keep in mind most of these properties have in their title history the developer's corporation. Do you think they checked out the title before they bought the land? I am thinking yes.