Real Estate Q&A

Q. I am in the process of buying a new home on land that was previously owned by the federal government. The land was given to our local government that sold it to a developer, do I really need to pay for an owner’s title insurance policy.

A. Yes you do, if you don’t obtain this policy if any of the title transfers were faulty, you risk losing you home equity. Also, if the developer incurred any unpaid liens those liens could attach to your new home. Not buying title insurance policy is a bad idea because there are so many unexpected title risks that could cause you a financial loss. Since mortgage lenders insist on title insurance, so should you.

Posted by Donald Urschalitz P.A. at May 15, 2005 04:09 PM