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They can sue the dealer that sold them the object. I'm sure they can get insurance too but possibly the insurer would do some research on the object before unde
by pkaye 7y ago
They can sue the dealer that sold them the object. I'm sure they can get insurance too but possibly the insurer would do some research on the object before underwriting. Kind of like title insurance.
- Waterluvian 7y agoI bought title insurance last week because I had to. But I'm curious what it's about. Is it in case someone shows up and is like, "no I'm the actual owner of the house. The seller defrauded everyone, look at all this evidence."?
- bardworx 7y agoYes, that’s exactly what it’s for. A more realistic scenario is a family member sold a house but didn’t own the rights. Next thing you know, another family member shows up and tries to dispute the sale. That’s how I understand it.
- pkaye 7y agoYes the title insurer does their research for any discrepancies and then insures you and the lender against certain risks.
- sparky_z 7y agoThe other replies are correct, but there are also subtler problems that title insurance can cover. One example I remember reading about was an old surveying error that resulted in an inlaw unit encroaching 6 inches on a neighbor's property. If such a problem is discovered, the insurance company might negotiate with the neighbor to purchase a perpetual easement or, failing that, pay to have the inlaw unit either moved or altered to correct the problem.