Use Title Insurance to Insure Real Estate Options

The very first thing that I do after I have done my preliminary due diligence and determined that the property owner is willing to sell me an option is to have a title search done on the property’s title by a seasoned title professional who has experience doing title searches in public records libraries for [...]

Prior to ever buying a real estate option, you need to first contact a reputable at-torney or title insurance or escrow company and have them perform a title search to determine if they will issue an owner ’s title insurance policy commit-ment  to insure the property ’s title. You must do this so you do [...]

A title insurance policy, like all types of insurance policies, is only as good as the company underwriting it. So, when you buy any type of title insurance, always use the services of a board-certified real estate attorney or a title or escrow agent whose title insurance policies are underwritten by a reputable regional or [...]

Here is a listing of what title insurers look for when reviewing a real estate option agreement to determine its insurability: 1. Does the real estate option, prior to its being exercised, create an estate in land under state statutes? 2. Is the real estate option recordable under state statutes so that it constitutes constructive [...]

Generally, a standard real estate option endorsement does not insure against loss or damage caused by: 1. Disaffirmance of the real estate option, under the provisions of the U.S. Bankruptcy Code. The interest of a real estate optionee is subject to being rejected as an executory contract under the U.S. Bankruptcy Code in the event [...]

Please keep in mind that title insurers, by the very nature of their business, are rather skittish when it comes to what they will insure. And to most title insurers, insuring real estate options is perceived as being risky business. Title insurers generally consider straight or naked real estate options, which are not contained in [...]