aquabliss said:I don't think you can opt out anyhow. It's mostly a scam but this may give you a warm fuzzy:http://www.nolo.com/legal-encyclopedia/title-insurance-buyer-needs-36126.html
Edit: you can probably opt out if you're an all cash buyer but otherwise you're stuck as the lender will require it and bundle it with your closing. Are they using First American Title? Easy $ all day long for those guys...
RangeRover said:I'm no expert either but it's only a one-time purchase unlike a home insurance. I would not take that risk. If you end up being involved in a lawsuit regarding your title issues, your title insurance will defend you up to whatever the policy amount is.
rayzam said:Out of 30+ properties I have purchased over the past couple of years, I had to resort to title policy 2 times. Granted, both were REOs with bitter past owners or prior issues with liens, etc, but even with a new construction, someone can always come out of nowhere and lay claim on the land or maybe a disgruntled contractor decides to go after the builder over some unpaid or disputed bills for the work it has done in your home. Will they get anywhere with their claim? Probably not, but just to defend yourself and make the case that their claim is baseless, you could be out several grands in legal fees with tons of headache. With the title policy in place, all you have to do is to forward the claim to them and forget about it.
eyephone said:I don't mean to sound mean or anything like that. But are people that cheap? That they don't want to pay the title fee and are willing to take the risk that there might be an issue with the title.