Do I Need Title Insurance If I'm Only Holding Property For A Short Time?
If I buy a property but only hold it for a month let's say, should I get title insurance or is this unnecessary?
I plan to sell to a rehabber, and I don't want to do a double closing for this deal.
I always get title insurance. It's cheap and if it is needed, it is worth every penny. Similiar to homeowners insurance, even though you may never have had a claim, you still buy it - just in case.
If you don't want a double closing, how are you putting property in your name? If you are putting property in your name, and you don't get title insurance you could get jammed up at the next closing. If you are selling in one month, I suggest you use a trust and assign over the equity interest to the rehabber in one month. That way you won't have to buy title insurance twice and you the rehabber are covered.
lori
Lori
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What would cause troubles? Couldn't the rehabber just get title insurance or is there something else I'm missing?
As for the trust, do I need to involve the seller in that? Would the seller deed her property over to the trust, and then I assign over interest to the rehabber?
Or could I just take title from the seller normally, and then put the property into the trust?
How much extra expense would this trust be?
You first need to decide if you are going to buy it or assign it.
Lori
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I don't think you realize the importance of title insurance. Title insurance guarantees a good title. If you don't get the insurance, then how do you know whether or not you will be able to legally sell the property?
I am going to buy, in this situation I don't want to go with a double closing or assignment.
Then you would definately need title insurance. There are two types: owner and lender
Lori
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