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Title Insurance is indeed a racket at this point. Their payouts are a tiny percentage of their overall premiums. As you mention, this seems like a good option b
by UncleMeat 5y ago
Title Insurance is indeed a racket at this point. Their payouts are a tiny percentage of their overall premiums. As you mention, this seems like a good option but in fact isn't a good one.
In order to replace title insurance and make it so anybody can verify the state of a property you need to first make all liens ever live on the blockchain. That's the hard part here. If it is possible to have a lien on a home without that appearing on a blockchain then there is still a need for somebody to review the title.
Further, there is no need for decentralization! The state can simply operate a centralized append-only database where transactions are recorded and liens are created and publish that to everybody.
- throw0101a 5y agoThe average price of a house in Ontario, Canada is $922K: * https://wowa.ca/ontario-housing-market https://wowa.ca/ontario-housing-market When purchase through a lawyer, title insurance in Ontario is around $250: * https://www.getwhatyouwant.ca/what-the-heck-is-title-insurance https://www.getwhatyouwant.ca/what-the-heck-is-title-insuran... 250 / 922000 = 0.000271 or 0.03%. I've had bar tabs larger that $250.
- UncleMeat 5y agoIt is true that the price of title insurance is very small compared to the price of the house. But their expected payouts are still a smaller percentage of their premiums than other insurance.