| 11 March 2010
With the growing concerns over foreclosures, unpaid taxes, bankruptcies and clouds on title, the need for title insurance is at an all time high. And yet every year a handful of purchasers waive their opportunity to purchase an Owner’s Title Insurance Policy. While the number that waives title insurance is small – probably less than 1% of all of our purchase transactions – the excuses for waiving are often similar.Our website provides an explanation of title insurance, but here are a few of the most common excuses used for waiving coverage, followed by the reasons why those excuses are unsound.
Excuse: “The sellers have lived there for 25 years. If there was a problem, it would have come up before.”
Debunked: Even though the seller has owned a property for 25 years, it does not mean that a defect does not exist – the defect could have been there all along. And new defects could have arisen during the prior ownership.
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