TITLE INSURANCE IS YOUR FINANCIAL SEATBELT
Until you need a seatbelt, you just don’t realize how important it is. As a homeowner you wear your financial seatbelt—your Owners Title Insurance. In either case, you never want to use your seatbelt, but it’s there if you need it. Furthermore, Title Endorsements are your airbags; they add more protection. I don’t care how safe you drive—it’s all the other crazies out there!
You could argue that the Marketable Records Title Act (MRTA) prevents you from needing Title Insurance, and you could be right, but you could also be sued and have to pay legal fees to make that defense in court. Our office had a Seller with a record of over fifty years of ownership, and still got sued. You need a good attorney to say, “Under MRTA, go pound sand!” An Owners Title Insurance policy pays for and provides that attorney.
The cost to defend real estate title starts at $5,000 to $10,000 up-front, non-refundable retainer, plus $350 per hour in attorney fees, plus court costs.* You do the math—is this worth the risk? Or, for a low, one-time fee you could get Owners Title Insurance.
When does Owners Title Insurance expire? When you’re dead. The policy is in place even after you sell, and will defend your link in the chain of title, thus protecting your ongoing financial interest and liability.
Don’t let the crazies out there crush your wallet. Wear your financial seatbelt and get Owners Title Insurance when you take real estate title.
*These are estimated charges, it depends on the attorney.
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