If you have a mortgage on a property the bank only requires you to secure the mortgage amount with title insurance...not the entire property....and BTW that only insures the bank against any potential loss. You would have to also buy an owners title insurance policy on top of what the bank requires.
For a new home bought from the developer, getting title insurance only provides you peace of mind....but in 99.99% it is not required or even needed. The deveoper would have hundreds of lawsuits on their hands if they did not provide you free and legal title to the property. You should however have the develloper give you a signed and notarized Release of all Liens from its subcontractors who worked on your house.
If you are buying a resale property, you are definitely open to more exposure and it would in most cases be worth the additional monies to pay for owners title insurance.
I have 2 questions for Hertigage Title Insurance company : 1) can you cite statistics showing how many claims have been made in The Villages where the Developer has not provided clean title to the original homeowner and the title insurance company paid a claim.???? And 2) how many title Insurance claims have been made / paid in for Village pre=owned (resale) properties since 1975 .
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