If you’re looking for ways to save on a real estate transaction and wondering if you should waive owner’s title insurance, we’re here to tell you that you may want to think twice.
Buying a home is one of the most important financial decisions you will probably make in your lifetime – by waiving owner’s title insurance, you are essentially choosing to not protect your purchase and new asset.
What You Need to Consider Before Waiving Owner’s Title Insurance
While every transaction is different, and every homeowner has different priorities, there are definitely a few universal things to be aware of before you go ahead and waive your right to title insurance.
Problems with Your Seller’s History – it can be easy to give a seller the benefit of the doubt when it comes to issues in their homeowning history, and let’s be honest, that’s the last thing you want to think about in the homebuying process, but all too many times that blind trust leads to problems down the road. Title insurance protects you from any potential issues with your seller’s history, such as missed liens, entire history of sellers, title fraud, and incorrect records.
Attorney’s Fees Down the Road – the associated costs of needing to hire an attorney to help circumnavigate any potential issues that could arise as a result of waiving your title insurance could be more than the one-time cost of owner’s title insurance.
So, while the short answer is a resounding “yes, you certainly can waive your right to owner’s title insurance,” we want to make sure you understand the the risks don’t quite outweigh the benefits on this one.
Homebuying can be a long and stressful process, but title insurance is your best bet at preventing issues down the line.
If you’re in the process of making a real estate transaction or deciding if title insurance is right for you, give us a call – we’re here to help you navigate things stress-free.