Hello and thank you for the opportunity to assist you. My name is XXXXX XXXXX I will do my very best to answer your legal questions.Q:
however, is this a case of 'you get what you pay for' -- meaning, would the title insurance be all but useless in the event that something goes wrong when the buyer goes to sell down the line.A:
That would depend upon the terms of the title insurance policy. Since I haven't read the terms, I can't say one way or the other. However, I will point out that you will want to review the title insurance policy to be certain that you are a beneficiary in the event that there is a problem. Lenders always purchase title insurance policy to protect their own investment. However, the homeowner
is not a beneficiary under those policies. Accordingly, you would want to review the policy to be sure that you are a beneficiary.Q:
if it is the case that we'd get lesser service using one of the fannie/freddie title companies, and if we'd already bought using their title services, then would it be worth it to reinsure our title with our own title company?A:
Whether or not it would be worth purchasing your own insurance depends on how risk adverse you are, and whether you can afford your own policy. A policy costs about $3.50 on average for every $1000. So, for example, if the house costs $300,000, then the policy will cost you about $1000. It is highly unlikely that you'd ever have a claim. On the other hand, if there is ever a cloud on the title, then it could be extremely costly to resolve, and the resolution may not be in your favor. In that scenario, the fee would be well worth it. But again, the vast majority of people never have a title issue.
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