You will be purchasing title insurance for your lender at closing. This is a mandatory item and it does not protect you, the buyer. It only protects the lender or mortgage company. All efforts are made to insure clear title when you buy however, there can be clouds or defects in the title that are not readily evident when the title search is done. A defect or cloud such as this may become evident years later when you are selling the property to another buyer. If you do not have title insurance, you will have to hire an attorney to clear the title. This could cost you thousands of dollars in attorney fees.
If you have purchased title insurance for yourself, it will cost you nothing. That title company will do the work of clearing the title with no charge to you. If you have a problem, you will agree that this was money well-spent. Of course, if you never have a problem, you could consider it a waste of a few hundred dollars but that is what insurance is all about. When you need it and have it, terrific. If you need it and don't have it, the money will come out of your own pocket.
Penny for your thoughts?
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You will be purchasing title insurance for your lender at closing. This is a mandatory item and it does not protect you, the buyer. It only protects the lender or mortgage company. All efforts are made to insure clear title when you buy however, there can be clouds or defects in the title that are not readily evident when the title search is done. A defect or cloud such as this may become evident years later when you are selling the property to another buyer. If you do not have title insurance, you will have to hire an attorney to clear the title. This could cost you thousands of dollars in attorney fees. 