Posted by William Bronchick on October 15, 2003 at 08:05:01:
Title insurance is a risk business, so generally you can’t get insurance unless the carrier feels there is very little risk.
Having said that, I would always advise people to purchase title insurance if there is a large downside.
For example, if you are giving the seller $1 to take a deed to his property subject to an existing loan and you simply rent it out, what’s the risk? If there’s a title problem or the seller’s loan gets called due, you have nothing at risk financially. If you sell the same property on a lease/option and now the buyer wants to exercise and there’s a title flaw, no you’ve got a problem.
When it doubt, buy title insurance.