I once told a story about a real estate agent that couldn’t believe how I was able to sell land so easily.
Her big hang up was on the fact that I don’t fall for the title insurance scam.
Yeah, that’s right, I called it a scam, and I’ll explain why soon.
Whats more important is why I don’t use them at all.
I don’t know about you, but when I make a sale, I want that money right away.
Nothing feels better than seeing that email from PayPal, stripe or zelle that shows my back account balance increasing.
Sometimes I need that some of that money to do the next deal
Or maybe, its to pay a bill or buy something to treat my family.
Either way, I be like those JG Wentworth commercials “Its my money and I need it now!”
(if that phrase aint familiar to you, YouTube it, its day time TV commercials at its finest)
Anyway, when you use a title company, your money is put in an escrow account while they slowly do their work.
What work do they do exactly?
The same exact work that I do before I even buy the property!
However, the work I do is free (besides my time, which is 30 about minutes or less)
Here’s the thing, they don’t do the work in the brief amount of time, its 30 days or so.
I also get to pay $1000+ for the “privilege” lol
You may be thinking “okay, that kinda sucks, but how is this a scam”
The scam is the fact that title insurance DOES NOT INSURE ANYTHING!
Here is a screen shot of a title insurance contract to show what I mean (I highlighted the points of interest)
Notice how theres a whole section about what things are not included in the coverage you pay for…
Including defects in the title they don’t know about?
Isnt that the whole point of title insurance??
To find defects in the title you as the potential buyer can’t find on your own??
So, how is this insurance?
Anyway, I will go more into this, but I included a small video of how I do my title search.
This video is something I send prospects to show how I can sell on warranty deeds and how they will not buy a property with a cloudy title.
(don’t worry, I will explain all of these terms soon)
Just know this, you have the power to buy and sell with confidence, you just need a little know how.
Everything you need to know will be on public record.
If its not on public record, its probably not official.
Also, it doesn’t take long to see the title chain or who is the rightful owner (ill explain these terms soon)
One last thing before I go, there are time I have used a title company, but Its always at the buyer’s expense.
And the 2 times Ive used them, I regretted it because of the amount of time this takes.
So now you know why I avoid title companies…and why I don’t recommend them for this business.