I’m surprised to hear that a member of the public knows what title insurance IS, so imagine my reaction when I heard someone “got in a fight about title insurance.” A friend is on the Board of Directors of her condominium association and apparently got in quite the dustup with others on the board over whether or not they needed to buy title insurance on parking spaces the association was buying downtown Minneapolis. Luckily, she was in the majority and the association purchased policies for all of the spaces, but some common perceptions and misperceptions about title insurance came up in the “argument.” Dissenting board members argued the following things:
- Title insurance is expensive.
Well, it does cost money – but the price is nothing compared to the expense of defending yourself against a lawsuit, mechanic’s lien or another hostile claim to the ownership of and equity in your property.
- We’re buying five parking spaces, but we only need title insurance on one.
Wrong! These parking spaces are newly-constructed and the chance of mechanic’s liens popping up is higher than on a piece of property that has been built for many years. Also, every owner of each piece of property generally gets named in the types of suits that these new spaces are vulnerable to. If something went wrong, the only space protected would be the one with a policy.
- Title companies only insure things when there is no risk.
Wrong again. I could tell you so many stories….
There’s a reason lenders require title insurance policies – they need to make sure their interests are protected. Home buyers should do the same. Title insurance protects you against things you never imagined would come up. The lady that went to the mat to convince her condo board to buy title insurance was pushing to spend some of the association’s money – but the amount they paid is well worth what they’ll save if there’s a problem. Got questions? The GCS Title team and I are here – call anytime! ~Charlie
If you read the team bios at gcstitle.com, you’ll notice themes: We all appreciate how every day in this business is different, we thrive on solving problems and we love helping people – not only buyers and sellers who are going through an important transaction that they only do a handful of times in their lives, but the Realtors as well. The 2016 National Association of Realtors member profile came out recently and I noticed that the median gross income for agents with 16 years of experience or more went up $4600 last year – great news for those seasoned pros. Not so great news was the fact that NAR members with two years of experience or less fell $600. Being self-employed and working on straight commission is challenging and we understand the importance of every client and transaction to the Realtors we work with and we consistently work to help agents and loan officers to develop business instead of simply asking them for it.
Closings and everything that goes into them is our business at GCS but we believe our role extends beyond that in the industry and beyond. We also work with our real estate and lending partners to reach out to the buying and selling public, participate in community events with Spare Key, support our veterans through organizations like the American Warrior Initiative. We believe we’re all in this together and we’re always looking for ways to support our partners and community. How can we help you? ~Charlie