Originally Posted by GrnMtnMan
Not worth $200 for title insurance? Really, on a $10,000-$20,000 purchase?
Anyway, there's a huge difference between caveat emptor and having recourse. And any scenario where you did not get what you agreed to get in the contract, you have recourse.
Not to mention the seller possibly committing fraud (criminal, if they knowingly take the sale money and use the points), and the broker and title professionals putting there licenses and reputations at risk.
From a risk standpoint DVC is very easy to investigate. For most purchases I do not believe the cost is worth it but it does depend on the actual cost to a degree (of insurance and package) and it depends on the situation. If you're buying a divorce or bankruptcy situation it may be but not for the routine. I would suggest that having recourse and being successful in collecting are 2 different things. Plus, you might spend as much or more trying to collect. You also can't get blood out of a turnip or the seller may be in another country. Criminal actions also don't help you get your money back.
Most brokers and closing companies do a good job in this area, the info that you get from the broker and estoppel are helpful and there is a fair amount you can do yourself to protect yourself. You can also get the appropriate AG and BBB involved if needed. Heck, getting the title insurance to pay when they might should can be an issue in some situations. My point is there are many things you can do to protect yourself but NONE of them are absolute.