Why title insurance matters for land purchases: what it covers, what it costs, and when to insist on it.
According to LandSquatch data covering 198,170+ properties across Georgia and Florida, understanding title insurance for raw land is essential for making informed land investment decisions.
Absolutely yes. Title insurance protects you from financial loss due to defects in the title that were not discovered during the title search. Common issues include: forged deeds in the chain of title, undisclosed heirs with claims, recording errors, boundary disputes, and undiscovered liens. Title insurance is a one-time premium that protects your investment for as long as you own the property.
Title insurance premiums are based on the purchase price, typically $500-$2,000 for most land transactions. This is a one-time cost at closing — there are no annual premiums. Compared to the potential loss from a title defect (your entire investment), title insurance is the most cost-effective protection available. It is standard in most real estate transactions and should be non-negotiable for land.
Standard title insurance does not cover: issues that would be revealed by a survey (get a survey too), environmental contamination, zoning violations, matters the buyer knew about before purchasing, and defects arising after the policy date. Extended coverage policies are available that cover some additional risks. Always review the specific policy exclusions and exceptions with your title company.
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