A Tip About Title Insurance.

The importance of title insurance. In a recent transaction, I heard an escrow officer tell me "No need for title insurance." This sent up a huge red flag because it's dangerous and wrong information. This information came from someone that I was suppose to trust. He was also a friend and a fellow real estate professional.

So here it is, in black and white, okay black, orange, and purple, if your gonna be picky! Never, yes, never buy any kind of real estate without getting title insurance. If there is no existing policy, then be smart and get one.

Here's what title insurance does for you:

• Adds you as the insured.

• Insures that any liens are valid and enforceable.

• Insures that you are in the senior position.

• Insures that you have a valid and enforceable assignment to the real estate, free and clear of any liens.

They do not insure against any invalid information that was used as a violation of any consumer credit or truth in lending law. Be very careful of hard money lending. If this is a real estate transaction using a carry back note you should be safe. Additional safety tips would be to use a seller-financing disclosure statement in states where seller financing is used especially in the sale of real estate through a real estate agent. Always ask for a copy of any paperwork involved.