Should I Get Title Insurance?

A few years back I had purchased multiple vacant “land lots” properties in Port Charlotte Florida which I had opted out for a title search to be performed. In most cases the titles had been fine with no real issues, can’t say this for all of them though. I guess I saved the best for last… Well not really. The last property had multiple Code Enforcement Lien(s) that had been put in place by the county not based on the property in question but rather other properties that the previous owner had owned. The violations stemmed from a trailer that was in complete disarray and after multiple attempts by the county to rectify the situation they decided to attach the said lien(s) to any and all “Real Property” the owner was listed on. This was completely new to me that a piece of property could have a lien placed on it that has nothing to do with the lien(s) in question.

After hours of reading through the Liens my take was once the previous owner was no longer associated with the property I now own these liens would no longer exist. So I contacted the county and sure enough I was right. Next was to get the title company up to speed so I asked the County to generate a confirmation.

My feeling is this could of played out badly for me and as an investor my only goal is to make a profit however if this didn’t go in my favor I would actually have to payout at closing. Lesson learned, get title insurance no matter how small a purchase in the end it will be worth it.

*Note: Title Insurance would roughly cost $395-$500.

 

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