Quote:
Originally Posted by graciegirl
This has always been my understanding of title insurance.
Title insurance does NOT protect you after you gain possession of your property. It only researches the title and checks the history of the property up to the time of your closing against liens and encumbrunces.
During the time you own it others can place liens on your property if you do not pay a contractor or fail to follow deed restrictions. It is then needful for the next buyer to research the property when you sell it.
We opted to trust the developer was transferring a clean property.
It is my understanding that title insurance does not insure the title once you own it. It just gurantees it is clear up until that date and insures that any thing that may appear that happened prior to closing is insured..
What Does Title Insurance Cover? | eHow.com |
It is not a case of trusting or mistrusting the Developer. I also trusted him otherwise I wouldn't have bought a house from him. It is unscrupulous people who may know I have no title insurance and file a nuisance claim. The peace of mind far outweighs the small premium.
By the way, I believe the Developer's own bank requires title insurance on their mortgages.