When it comes
to buying and selling real estate, no matter where you plan on
doing it, you need to be assured that what you are buying or
selling has no ghosts in the closets or in the title.
By ghosts, I am referring to hidden and/or unknown liens and
unknown unreleased claims to a piece of property before you get
caught up in a whole mess of trouble that can spoil the best of
real estate transactions.
A title search is done to make sure there are no liens or
any claims against the property and you can transfer it legally
to a new owner. A researcher, usually done by a clerk from a
closing attorney's office does this search. There is a fee paid
for this service.
A title opinion letter is a letter that states there does
not appear to be any liens against a piece of property, but
no assurances or guarantees are given. This letter is sometimes
given in lieu of a more costly version of a title search that
includes title insurance. Do Not Ever Under Any Circumstances
Settle for a Title Opinion Letter!
Insurance is an assurance that if something may have been
missed or overlooked in the original title search for any liens
or unreleased ownership of a piece of property, you are covered
by this title insurance that protects you from legal or
financial recourse. Insist On Title Insurance on All Real Estate
Real Case History in Gallatin
It was several years ago, but there was a family that got a
notice some 15 years
after owning a piece of property and living in their home, that
stated there was a
builder's lien disclosed by a plaintiff that never received
payment for their work performed on this property and they were
demanding some $4,000 in restitution.
Unfortunately, the buyers, and now long time owners of the
property, only paid for a title opinion letter in order to save
a few hundred dollars at closing, and did not have a title
insurance policy. Well, guess who had to pay for the $4,000?
Yep, the family that had been living in their home for 15
So, you never know when that title insurance policy will come in
handy. Don't buy a home or property without it!