Title Insurance for New Construction

[tom_sjc]

Does anyone know from whom the builder purchased the Fenney land?

Would the builder ensure the title was clean?

Why would I buy title insurance? Piece of mind, there has to be a better reason.

NOTE: There is no lender so buying it is optional.

[Gpsma]

Peace of mind would be the only reason. I was told by a title person that there is lottle chance of a title problem because most of the land here, before the villages, was rarely sold.

[JoMar]

I believe that land was owned by another developer before The Villages purchased it. I understand that developer became insolvent. However, I agree, would doubt there would be an issue but you need to determine what will give you peace of mind.

[VillageIdiots]

I'm buying with a mortgage and it's still optional. Wondering how many people opt out. If it was a few hundred bucks, it's certainly worth the peace of mind. But a couple grand or more, I just wonder if it's really necessary. The fact that the bank, Citizens First no less, still lets it be optional, makes me think there is a very low chance of it being necessary.

[tom_sjc]

I'm buying with a mortgage and it's still optional. Wondering how many people opt out. If it was a few hundred bucks, it's certainly worth the peace of mind. But a couple grand or more, I just wonder if it's really necessary. The fact that the bank, Citizens First no less, still lets it be optional, makes me think there is a very low chance of it being necessary.

Good info. Thanks

[retiredguy123]

All true, but the Native Americans still think it is their land. If they ever win in court, they will take your house. Stranger things have happened.

[vintageogauge]

We didn't take out the insurance and if the Native Americans ever win in court they would not get the land back and would most likely receive a financial settlement. But in any case, I doubt very much that I will still be around by the time any such case is settled so not worth the $2,000.00 cost of such a policy.

[asianthree]

Bought three houses here 2 new, no insurance. Preowned yes.

[retiredguy123]

I'm very cost sensitive, but I have always bought title insurance. I once purchased a house where the title seach revealed that the house had been sold previously without obtaining a divorced spouse's signature, who was the co-owner at the time. Luckily, the attorney was able to discover the error, locate the spouse, and get a waiver. Otherwise, I would not have received a clear title, and could have lost the house without title insurance.

[Challenger]

Spent 50 years financing homes. Would never opt out of title insurance. Chance of loss very small, however if there is a problem , it could cost you complete title to the property $(?) In my opinion opting out would be , as the brits say, "penny wise and pound foolish".

[Carla B]

When the first owner of a Villages house resells it the buyer would insist on a title policy. So how many titles have "failed" because of problems with the title passed by the developer to the first owner, then by the first owner to the second. Probably none so far.

[retiredguy123]

When the first owner of a Villages house resells it the buyer would insist on a title policy. So how many titles have "failed" because of problems with the title passed by the developer to the first owner, then by the first owner to the second. Probably none so far.
Is that just a guess? How would you know? People make mistakes, and, without title insurance, you would have to go to court and sue whoever made the mistake.

[VillageIdiots]

If it happened here with any frequency, in the past, no doubt someone here would have heard about it and posted it around here somewhere. Doesn't mean it never happened or can't.

[retiredguy123]

If it happened, you would only hear about it if the owner didn't have title insurance, because the title insurance company would handle it. Over the life of your house, title insurance is a lot cheaper than homeowners insurance, and if you need to use it, it will probably save the entire value of your house. That is why I always buy it.

[retiredguy123]

I'm buying with a mortgage and it's still optional. Wondering how many people opt out. If it was a few hundred bucks, it's certainly worth the peace of mind. But a couple grand or more, I just wonder if it's really necessary. The fact that the bank, Citizens First no less, still lets it be optional, makes me think there is a very low chance of it being necessary.
Are you saying that the title insurance to protect the bank's interest in the property is optional, or just the owner's title policy? It is my understanding that the bank always requires a bank title policy, but that the owner's policy is optional. An owner's policy will only protect your interest in the property, so the bank doesn't care whether you buy it or not.

[VillageIdiots]

Are you saying that the title insurance to protect the bank's interest in the property is optional, or just the owner's title policy? It is my understanding that the bank always requires a bank title policy, but that the owner's policy is optional. An owner's policy will only protect your interest in the property, so the bank doesn't care whether you buy it or not.

Correct. I went back and checked my estimated closing costs statement and there is a lender's title policy that is not optional and a borrower's policy that is optional. I guess that explains why they make it optional for the buyer - because they are covered for their interest in the property either way.

[Challenger]

When the first owner of a Villages house resells it the buyer would insist on a title policy. So how many titles have "failed" because of problems with the title passed by the developer to the first owner, then by the first owner to the second. Probably none so far.

Quite often , title claims , pop up after 50-100 years or more. Ask people in Connecticut about Indian tribe claims on land which now houses Indian casinos . others where there were transfers with erroneous metes and bounds descriptions. Some where the Federal government claimed previous domain, etc.etc.etc. Even if you are finally supported by court action to be the rightful owner, your defense could cost $thousabds . If you were insured, the title company would defend or pay for your defense.

[manaboutown]

I try not to be pennywise and pound foolish so I purchase owner's title insurance which assures coverage for marketable title. My primary concerns in purchasing a home within a large development include the developer obtaining marketable title from the landowner, release of construction and other prior loans and mechanics liens.

My only experience with title company issues is one I used for years on commercial properties went out of business which forced me to purchase reissue lender title insurance from another company. Fortunately the state stepped in and required them to offer a low rate.

I had an encroachment problem once but resolved it without the title insurance company needing to get involved.

[biker1]

In the case of new homes in The Villages built on large chunks of land bought by the Developer, if there was a title defect in the land bought by the Developer it could impact literally hundreds and possibly thousands of homes. In that case, all bets are off and things could be tied up in court for who knows how long with class action lawsuits. It would be ugly. For resales, I can see the need for title insurance. For friends who bought new, I don't recall any of them actually opting for the title insurance.

Quite often , title claims , pop up after 50-100 years or more. Ask people in Connecticut about Indian tribe claims on land which now houses Indian casinos . others where there were transfers with erroneous metes and bounds descriptions. Some where the Federal government claimed previous domain, etc.etc.etc. Even if you are finally supported by court action to be the rightful owner, your defense could cost $thousabds . If you were insured, the title company would defend or pay for your defense.

[manaboutown]

All true, but the Native Americans still think it is their land. If they ever win in court, they will take your house. Stranger things have happened.

With a Mountain at Stake, Tiny Tribe and New Mexico Neighbors Do Battle - The New York Times (https://www.nytimes.com/1998/09/08/us/with-a-mountain-at-stake-tiny-tribe-and-new-mexico-neighbors-do-battle.html)

[Henryk]

Does anyone know from whom the builder purchased the Fenney land?

Would the builder ensure the title was clean?

Why would I buy title insurance? Piece of mind, there has to be a better reason.

NOTE: There is no lender so buying it is optional.

I am not certain, but I was told the seller pays for title insurance in Florida That was the case in my purchase. In any event I would be certain to get it. (I worked for a real estate attorney.)

Another way to look at it is if a lender won’t loan without it, I wouldn’t buy without it.

[suebanj]

If you got both policies, the title premium would be calculated on your sales price with the lenders policy costing just an additional $25.00 plus endorsements as they are being simultaneously issued. To compare the price, you would need to find out the difference between the cost of the owners policy and the cost of just the lenders policy as the loan policy would be less.

[CT514s]

I am not certain, but I was told the seller pays for title insurance in Florida That was the case in my purchase. In any event I would be certain to get it. (I worked for a real estate attorney.)

Another way to look at it is if a lender won’t loan without it, I wouldn’t buy without it.

I've sold properties in other parts of Florida, and the seller either provided you with a copy of their title policy OR gave you a closing credit of $300. This was to cover the cost of a full title search rather than just a run-down of title. Here in TV, the developer does NOT pay for the buyer's title insurance. But if you're the Seller of a resale property you are required to pay for the Buyer's title insurance policy. And that's not negotiable. Not quite fair in my opinion, but it seems to be the cost of doing business here. Incidentally, the company (law firm, closing title company, etc.) retains a percentage of the title insurance fee as their commission. Maybe that explains it all.

[JOERILLA]

It was almost $1500 i believe when I bought in Fenney in Dec. I opted out of buying it...not to worried about any future problems

[Henryk]

I've sold properties in other parts of Florida, and the seller either provided you with a copy of their title policy OR gave you a closing credit of $300. This was to cover the cost of a full title search rather than just a run-down of title. Here in TV, the developer does NOT pay for the buyer's title insurance. But if you're the Seller of a resale property you are required to pay for the Buyer's title insurance policy. And that's not negotiable. Not quite fair in my opinion, but it seems to be the cost of doing business here. Incidentally, the company (law firm, closing title company, etc.) retains a percentage of the title insurance fee as their commission. Maybe that explains it all.

In Massachusetts, the title agent (attorney) got 70% of the title insurance premium.