Apr
7
Title Insuance
Posted by davidsonteamblog1 under For Buyers, For Realty Professionals, For Sellers, General Information
I thought I would share with you some insight on title insurance that I was given last week after a closing by the attorney. The closing involved me as the agent for the buyer who was purchasing a townhome in Stonelake on the westside of Savannah. The issue came up in the closing whether the buyer would purchase title insurance for herself in the transaction. The lender always requires title insurance be purchased for the lender. The cost is part of the closing costs and is either paid by the buyer or seller according to how it was negotiated in the contract. However individuals have the option of purchasing title insurance for themselves. In this case the buyer elected not to buy title insurance for some different reasons. Afterwards the closing attorney and I were talking about scenarios where the buyer might elect to buy the title insurance. One of the aspects of this transaction was that the seller’s wife was actually signing for him at closing through a Power of Attorney. She was using a very good local agent and seemed very honest so in this particular case there didn’t seem to be any concern whether the Power of Attorney was real or not. However Let’s say that for whatever reason that power of attorney was not real and the seller came back 2 weeks or 2 months later and in fact the person signing didn’t actually have the authority to sign for the seller. There are lots of cases of different types of fraud being reported these days. What happens to the buyer? Well whatever might happen, if the buyer had purchased title insurance thebuyer would be protected. Something to think about. As always please review your specific situation with an attorney to determine what is the best choice for you.
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