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Originally Posted by starflyte1
Very nicely thought out and written NJblue. Thank you.
Coming from Lake of the Ozarks in MO, the thought would never occur to me to NOT get title insurance. However, after reading your post, it is worth thinking about not getting it in TV.
Two questions? Is there a time frame that a lien can be placed against your property for work done and not paid? And, could it be possible for someone to take out a 2nd mortgage from a private party and not record it? Just hold it privately?
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If you read the post by nanci2359 in the linked threads, you'll see that her house was built on someone else's land 25 years before, and she wound up losing.
Probably the most common issue resulting in making a claim against TI is for a mechanics lien, but there is the remote possibility that someone, even a long time ago, has some proof they own the land you're on. Given TV is built on many relatively small parcels purchased over time, can anyone be sure there isn't some unopened will out there that says "Johnny gets my farm" dated before the property was sold to TV?
Maybe you are over-insured. But considering that TI runs only a couple of percentage points of the sale price, it's low cost protection for what could be a painful process. Even if "Johnny" never gets the property out from under you, the stress induced just getting served the lawsuit papers would be worth the cost of TI to me.
I'm not that kind of gambler, and I'd consider buying a house that costs $1200 less and thinking of the TI as part of the price if the money is that tight.
Good luck to you - whatever you decide to do.