If you are purchasing a home or another piece of property, you may wonder if you really need title insurance. If you’re borrowing money, you’ll find that lenders insist upon its purchase to protect them from financial losses stemming from property ownership disputes.
But you have the option to purchase tile insurance for owners. So, is this just another way to dissipate limited funds or a necessary protection?
Sure, you can go ahead and gamble that the abstract you paid for and which returned a clear title is accurate. At face value, it probably is. But that does not guarantee that if an unknown heir crawls out of the woodwork with a legitimate claim to the property that you could wind up taking a major hit.
Even if you prevail in court, your bank account will likely be significantly tapped for legal fees and court costs. And if you lose, you could lose big, e.g., your property and any improvements you made.
If you’re the belt-and-suspenders type, you probably want to go with the purchase of title insurance for your new property simply for your own peace of mind. After all, it’s a one-time expense for a nominal fee and not an ongoing monthly debt for which you’ll be on the hook for the next couple of decades.
If you’re the type who tends to fly by the seat of your pants, you may be comfortable foregoing this extra expense. The decision is yours to make.
It is always prudent to seek the counsel of your Las Vegas real estate attorney on these matters. Their answer may be able to guide your decision in the matter.