Does anyone know of a case where they would not take title insurance in a closing?

Question

My friend was buying a condo, there were some title issues and when my friend went to buy title insurance, the lawyer said they wouldn't take it? Weird.

Answer 1

Title insurers often have authorized agents that can issue title insurance on their behalf.  A lot of times these authorized agents can get shut down and their documents are no longer accepted if they do anything fraudulent or don't adhere strictly to policy.  I work for a mortage company and we get notification at least once per week about which companies we can no longer accept insurances from.

You should see if they offered her a big "discount" for using them or anything like that.  If they did, they're probably shady because the prices are mostly regulated by the states.

Answer 2

There are some title companies out there that are black listed for 1 reason or another!

Answer 3

I only had that happen when there were ex husbands and wives running around with unfinished business.  The title company only likes divorces which are clear and final and the ex can not spring a surprise.

I tried to sell my grandpa's house without going thru Probate.  It was legal for me to sell it.  I inherited it.  But they wouldn't issue title insurance without the Probate Court letter.  The buyer backed out even tho he said that he understood what i was doing and the price was $50,000.  After Probate, i sold it for $79,900 with the title insurance.  He should have gone thru with the sale without insurance.

Did someone die on your friend's sale