$596,000,000.
That is how much the title industry paid in claims in 2022, according to a recent article by DS News’ Eric C. Peck.
Imagine, after months of searching, you finally find the perfect property. It meets all of your needs and even has a few extras you hadn’t counted on. Best of all, even though it is a bit more than you wanted to spend, the seller is offering it for an excellent price, considering the current market.
You sign the contract. Inspections go well – a few minor issues, but nothing you can’t manage.
The appraisal comes back, and you spend all week getting documentation into the lender.
Your attorney asks if you would like title insurance.
“Insurance?” you ask, “Why would I need insurance?”
I’ll give you 596,000,000 reasons why you need title insurance.
Prior to closing, your attorney, and the title company they select, no doubt work extremely hard to ensure that you are purchasing a piece of property free of liens, unwanted easements, and other encumbrances. But even with all of that effort, the fact remains that there is a sizable amount of title insurance claims made every year.
Title insurance provides you with peace of mind and protection against title issues that may not arise prior to closing, such as issues that were not initially located in the public record, unknown boundary disputes, defaulted taxes, even errors and forgeries in recorded documents.
Additionally, an article published by the NYS Attorney General’s Office in April 2023 noted that from 2014 to present, nearly 3,500 complaints of deed theft were counted by the New York City Sheriff’s Office – that’s in New York City alone!
Title insurance is not an unnecessary or careless expense. After putting so much of your time and resources into finding the perfect property, don’t risk losing it all.
Protect your investment. Get title insurance.
