I was originally taught to get title insurance whenever you spend any money in either acquiring or rehabbing/holding a property.
The title company I’m using now has told me that if you do get a policy and there is an issue, the underwriter is going to want to see proof that some consideration has been paid, and that doc stamps were paid when recording the deed. If, as is often the case when you put property into a trust to “hide” the transfer from the lender, there are no doc stamps paid, the claim is most likely going to be denied. Thus, title insurance in that situation – in the opinion on my title company attorney – is useless.
When taking a property Sub2 into a land trust do you obtain title insurance? I realize when taking property Sub2 and having it deeded directly to you, that Title Insurance is a good idea but I was just not sure if it is even possible to get Title Insurance when obtaining the property through the land trust method.