Owners Title Insurance. Yes or No

[JimJohnson]

Lenders will not lend you the mortgage without you buying a lenders title insurance.

If you purchase from an individual, it would be smart to buy or insist that the Seller buy you aN owners title insurance policy.

If you buy a new home from the Villages, save your money and IF, anything should go wrong, you have the option of suing The Villages for selling you a piece of land that they DID NOT OWN.

[retiredguy123]

You always have the option to sue a seller, but who wants to do that? And, a lender's title policy does not protect the owner. I have always bought an owners title insurance policy. When I bought my first house, the attorney who examined the title found that the a previous owner had sold the house to the current seller without getting her divorced spouse to sign the sales documents. His name was still on the previous title. The attorney had to track down the spouse in another state to get his signature. If the attorney had not discovered the error, the title insurance could have been well worth the cost.

[leftyf]

I have always included in my offer that the seller pay for title insurance and survey, always accepted.

[Challenger]

Lenders will not lend you the mortgage without you buying a lenders title insurance.

If you purchase from an individual, it would be smart to buy or insist that the Seller buy you aN owners title insurance policy.

If you buy a new home from the Villages, save your money and IF, anything should go wrong, you have the option of suing The Villages for selling you a piece of land that they DID NOT OWN.

Spent 40years working for community banks whose major line of business was home mortgages . Always advised customers to buy Owners policy . This post is very questionable advice . Many other threads on the issue - read them for more info.

[Challenger]

You always have the option to sue a seller, but who wants to do that? And, a lender's title policy does not protect the owner. I have always bought an owners title insurance policy. When I bought my first house, the attorney who examined the title found that the a previous owner had sold the house to the current seller without getting her divorced spouse to sign the sales documents. His name was still on the previous title. The attorney had to track down the spouse in another state to get his signature. If the attorney had not discovered the error, the title insurance could have been well worth the cost.

An owners policy will provide legal representation at their costs if an issue arises. This can be a very significant cost . Many thousands is common place. Peace of mind for the life of your ownership for a few hundred dollars.

[charlieo1126@gmail.com]

If this was Massachusetts with land owners going back 100’s of years I would say yes , but I’ve owned 5 homes here , the last thing the family would want from d a land dispute , save your money and say no

[vintageogauge]

Say no if it's a new home and yes if it's a used home.

[JimJohnson]

You always have the option to sue a seller, but who wants to do that? And, a lender's title policy does not protect the owner. I have always bought an owners title insurance policy. When I bought my first house, the attorney who examined the title found that the a previous owner had sold the house to the current seller without getting her divorced spouse to sign the sales documents. His name was still on the previous title. The attorney had to track down the spouse in another state to get his signature. If the attorney had not discovered the error, the title insurance could have been well worth the cost.

Could happen, but notice I am talking about a new home on village bought property. So again, save your money

[JimJohnson]

Spent 40years working for community banks whose major line of business was home mortgages . Always advised customers to buy Owners policy . This post is very questionable advice . Many other threads on the issue - read them for more info.

And you would be correct if you are mortgaging between a buyer and seller. But note, I’m referring to buying a new home from a large corporation. So I get where your coming. From, but in this case your way off target.

[JimJohnson]

If this was Massachusetts with land owners going back 100’s of years I would say yes , but I’ve owned 5 homes here , the last thing the family would want from d a land dispute , save your money and say no

Well said.

[JimJohnson]

Say no if it's a new home and yes if it's a used home.

Correct.

[Challenger]

Owners Title Ins costs hundreds- Will provide coverage of up to Value of property for the life of ownership, including legal costs of a suit to defend your ownership. The major cost items for Title insurance companies is the costs of defending the property rights of their insured. Value of home and property $000,000s - Cost of Owners Title Ins. $000s one time. The fact that the Villages was the last owner prior to the the purchase by the last buyer is comforting, but won't pay you bills for defense of your property rights. "Caveat Emptor" in either case

[Stu from NYC]

Worth it for peace of mind

[BobnBev]

Lenders will not lend you the mortgage without you buying a lenders title insurance.

If you purchase from an individual, it would be smart to buy or insist that the Seller buy you aN owners title insurance policy.

If you buy a new home from the Villages, save your money and IF, anything should go wrong, you have the option of suing The Villages for selling you a piece of land that they DID NOT OWN.

Good luck on suing the villages:ohdear::ohdear:

[JimJohnson]

I would say with great confidence that over the Last 30 years, there has never been one, not one Case of owners title insurance for a Villages built and sold home Being needed for any legal problem. Save your money and don’t buy it. .

[CFrance]

Lenders will not lend you the mortgage without you buying a lenders title insurance.

If you purchase from an individual, it would be smart to buy or insist that the Seller buy you aN owners title insurance policy.

If you buy a new home from the Villages, save your money and IF, anything should go wrong, you have the option of suing The Villages for selling you a piece of land that they DID NOT OWN.
And pit your puny little self against their huge corporate machine!


I would bet for darn sure they had clear title to the land your house is sitting on.

[Boomer]

Weird stuff can happen. With one of our houses — not in TV — there had been a typo in the record. It showed the wrong lot number. Nothing nefarious, just a typo, but it could have eventually become messy because it looked like the house was sitting on the neighbor’s lot.

Our title company caught it. (In our home state, the buyer usually buys the policy.) The previous owners had mortgaged and even second-mortgaged, twice, but, even so, nobody had caught the error.

Being concerned about a clouded title, we stopped the deal until the original owner, the developer, was tracked down. A quit claim deed for somewhere along the line was a part of what needed to happen. It was a bit of a tizz but everything got worked out and we bought the house.

I have heard people say that they do not need title insurance because they are paying cash for the house, no bank involved. To them, I have to say, “When you are a cash buyer, you are the bank so do what a bank would do.”

[JimJohnson]

And pit your puny little self against their huge corporate machine!


I would bet for darn sure they had clear title to the land your house is sitting on.

Exactly my point. I trust the Villages and their subcontractors to have all the i’s dotted and the t’s crossed. I have been here ten years and have never heard of a title dispute with a Villages new home. More importantly, I Trust that the Villages would stand by their properties.

[Bay Kid]

It is insurance. You hope you never need it, but if you ever do you will be very happy you did.

[caseycasebeer]

This is somewhat ‘off the “title insurance” topic, so let me apologize.

I have heard a radio commercial for “title lock insurance” several times and wonder if this advisable, or is it a newish scam?

Supposedly, “...according to the FBI” title theft is a major and growing problem. Supposedly a fraudster will hack county records and revise your property title to show him(her)self as the new owner, then retitle, get loans, arrange to sell your property, etc.

Of course the “title lock” company will sell you protection for $xx/month to give you peace-of-mind. Naturally they are willing to check your title’s validity for free if you merely give them your name, address, etc. Sounded scamish to me.

Just for the heck of it I went to the Sumter County record office to make sure no one had been messing with my ‘records. I was safe ... whew! I was also assured that the records department would become quite curious if anyone other than the listed taxpayer were to initiate a claim on my property.

Any thoughts, or was I just being paranoid?

Thanks / Casey

[Dust Bunny]

I am just about to close and I am using my own title insurance company. Sounds like a kick back to me.

[Challenger]

This is somewhat ‘off the “title insurance” topic, so let me apologize.

I have heard a radio commercial for “title lock insurance” several times and wonder if this advisable, or is it a newish scam?

Supposedly, “...according to the FBI” title theft is a major and growing problem. Supposedly a fraudster will hack county records and revise your property title to show him(her)self as the new owner, then retitle, get loans, arrange to sell your property, etc.

Of course the “title lock” company will sell you protection for $xx/month to give you peace-of-mind. Naturally they are willing to check your title’s validity for free if you merely give them your name, address, etc. Sounded scamish to me.

Just for the heck of it I went to the Sumter County record office to make sure no one had been messing with my ‘records. I was safe ... whew! I was also assured that the records department would become quite curious if anyone other than the listed taxpayer were to initiate a claim on my property.

Any thoughts, or was I just being paranoid?

Thanks / Casey

This coverage would be included under the Owners policy bought when settled on the purchase. The Title company would provide a defense against such a claim, at their total expense.

[Jayhawk]

Lenders will not lend you the mortgage without you buying a lenders title insurance.

If you purchase from an individual, it would be smart to buy or insist that the Seller buy you aN owners title insurance policy.

If you buy a new home from the Villages, save your money and IF, anything should go wrong, you have the option of suing The Villages for selling you a piece of land that they DID NOT OWN.

Sellers don't need title insurance. Buyers and lenders do.

None of these ideas are good ideas.

[Jayhawk]

I am just about to close and I am using my own title insurance company. Sounds like a kick back to me.

Kickbacks are illegal with mortgage transactions. Like, Jail illegal.


Real Estate Settlement Procedures Act (RESPA) (https://www.investopedia.com/terms/r/real-estate-settlement-procedures-act-respa.asp)

[JimJohnson]

Sellers don't need title insurance. Buyers and lenders do.

None of these ideas are good ideas.

Buyers purchasing a new home from The Villages DO NOT NEED TITLE INSURANCE. Save your money.

[Jayhawk]

If this was Massachusetts with land owners going back 100’s of years I would say yes , but I’ve owned 5 homes here , the last thing the family would want from d a land dispute , save your money and say no

Can we call Charlieo when that missed lien shows up?

Contractors are not immune from liens by suppliers. Good intentions I'm sure, but I wouldn't buy ANY house without title insurance.

[Jayhawk]

And you would be correct if you are mortgaging between a buyer and seller. But note, I’m referring to buying a new home from a large corporation. So I get where your coming. From, but in this case your way off target.

I believe it is you, sir, who has a bad arrow. The banker is 1000% correct.

[Alana33]

Title Insurance is a buyer's responsibility to pay for in a transaction.
Mortgage lender's require it for a loan.
It's not a huge fee and well worth the piece of mind.
Like any type of insurance, you hope you never need it but it's darned good to have if you ever do.

[retiredguy123]

This is somewhat ‘off the “title insurance” topic, so let me apologize.

I have heard a radio commercial for “title lock insurance” several times and wonder if this advisable, or is it a newish scam?

Supposedly, “...according to the FBI” title theft is a major and growing problem. Supposedly a fraudster will hack county records and revise your property title to show him(her)self as the new owner, then retitle, get loans, arrange to sell your property, etc.

Of course the “title lock” company will sell you protection for $xx/month to give you peace-of-mind. Naturally they are willing to check your title’s validity for free if you merely give them your name, address, etc. Sounded scamish to me.

Just for the heck of it I went to the Sumter County record office to make sure no one had been messing with my ‘records. I was safe ... whew! I was also assured that the records department would become quite curious if anyone other than the listed taxpayer were to initiate a claim on my property.

Any thoughts, or was I just being paranoid?

Thanks / Casey
Title Lock is not insurance. It is a monitoring service similar to the identity theft monitoring services, like LifeLock. In my opinion both services are a ripoff. Title Lock will charge you $15 per month to supposedly monitor your property title and notify you if someone tries to alter it. If you are concerned about it, you can easily do the same thing yourself for nothing. I think the service is worthless.

[JimJohnson]

I believe it is you, sir, who has a bad arrow. The banker is 1000% correct.

LOL. I respect your right to your own opinion, and under most circumstances you are correct, but in the case of buying a new home from the Villages, an OWNERS TITLE INSURANCE IS THROWING MONEY AWAY.
Please read twice and answer once. :ohdear:

[retiredguy123]

I would say with great confidence that over the Last 30 years, there has never been one, not one Case of owners title insurance for a Villages built and sold home Being needed for any legal problem. Save your money and don’t buy it. .
You may be correct, but I don't know how you could possibly know that there have been no title insurance cases in 30 years. A case like that would probably be resolved without a lot of publicity. But, I agree that there is far less title risk when you buy a new house in The Villages vs buying a preowned house. However, an owners title policy may cost as much as your annual homeowners insurance policy premium. The homeowners policy only lasts for one year, but the title insurance lasts forever. I am very careful when I spend money on things like insurance, but having title insurance on my house provides peace of mind. But, it is a personal decision and you are correct that the risk of a title problem with a new house is low.

[Fred2016]

I have always included in my offer that the seller pay for title insurance and survey, always accepted.
Everything is negotiable in a real estate sale. What you are saying doesn't mean the seller will pay for these things. In my real estate business the seller provides the survey. Most of my sales are larger land properties. Title insurance is a must for a buyer. Buyers pay for that.

[KRM0614]

Cannot sue in the villages every contract has arbitration. A judge decides, elected officials who receives contributions from those who benefit the most the Billionaire Morse Family.

[KRM0614]

If I sell my free and clear house I must provide the buyer with the deed. The buyer must buy title insurance there is no state law mandating I pay his costs. Only costs each incur are required by law not by a real estate person whose interests are not with either party.

[JimJohnson]

You may be correct, but I don't know how you could possibly know that there have been no title insurance cases in 30 years. A case like that would probably be resolved without a lot of publicity. But, I agree that there is far less title risk when you buy a new house in The Villages vs buying a preowned house. However, an owners title policy may cost as much as your annual homeowners insurance policy premium. The homeowners policy only lasts for one year, but the title insurance lasts forever. I am very careful when I spend money on things like insurance, but having title insurance on my house provides peace of mind. But, it is a personal decision and you are correct that the risk of a title problem with a new house is low.

Then, you should buy owners title insurance. As a retired federal contracting officer with extensive title, property and contract law experience, I’m advising you to save your money. The Villages lawyers have their land purchases sewed up very tight. If it gives you pease of mind then waste your money.

[Jayhawk]

Cannot sue in the villages every contract has arbitration. A judge decides, elected officials who receives contributions from those who benefit the most the Billionaire Morse Family.

You've read every contract?

:shocked:

[Jayhawk]

Then, you should buy owners title insurance. As a retired federal contracting officer with extensive title, property and contract law experience, I’m advising you to save your money. The Villages lawyers have their land purchases sewed up very tight. If it gives you pease of mind then waste your money.

With your experience, surely you know about construction liens.

ACCORDING TO FLORIDA'S CONSTRUCTION LIEN LAW (SECTIONS 713.001-713.37, FLORIDA STATUTES), THOSE WHO WORK ON YOUR PROPERTY OR PROVIDE MATERIALS AND SERVICES AND ARE NOT PAID IN FULL HAVE A RIGHT TO ENFORCE THEIR CLAIM FOR PAYMENT AGAINST YOUR PROPERTY. THIS CLAIM IS KNOWN AS A CONSTRUCTION LIEN.

So if the sub-contractor didn't pay for those roof shingles or the plumbing fixtures or anything else, the vendor CAN put a lien on the property before or after the deed is transferred. THIS is a great reason to have owners title insurance, no matter who pays for it.

Title Insurance: What It Is and Why You (Probably) Need It - NerdWallet (https://www.nerdwallet.com/blog/mortgages/what-is-title-insurance-do-you-need-it/)

[dougawhite]

if the sub-contractor didn't pay for those roof shingles or the plumbing fixtures or anything else, the vendor CAN put a lien on the property before or after the deed is transferred. THIS is a great reason to have owners title insurance, no matter who pays for it.


I have always hated to pay for title insurance in 8 home purchases. When you Google how title insurance companies often wriggle out of responsibility for faults it just backed all my misgivings. However, my wife always 'forced' me to buy it.

[JimJohnson]

With your experience, surely you know about construction liens.

ACCORDING TO FLORIDA'S CONSTRUCTION LIEN LAW (SECTIONS 713.001-713.37, FLORIDA STATUTES), THOSE WHO WORK ON YOUR PROPERTY OR PROVIDE MATERIALS AND SERVICES AND ARE NOT PAID IN FULL HAVE A RIGHT TO ENFORCE THEIR CLAIM FOR PAYMENT AGAINST YOUR PROPERTY. THIS CLAIM IS KNOWN AS A CONSTRUCTION LIEN.

So if the sub-contractor didn't pay for those roof shingles or the plumbing fixtures or anything else, the vendor CAN put a lien on the property before or after the deed is transferred. THIS is a great reason to have owners title insurance, no matter who pays for it.

Title Insurance: What It Is and Why You (Probably) Need It - NerdWallet (https://www.nerdwallet.com/blog/mortgages/what-is-title-insurance-do-you-need-it/)

That is true and Florida law requires the contractor to file a mechanics lien within 90 days of the work completed that the builder has not paid. That lien is transferred to the buyer if agreed to by the buyer at time of closing. Your reaching, but I don’t feel ya. Do you work or own a title insurance company?

[JimJohnson]

Keep in mind, I am only referring to Owners Title Insurance when buying a home from The Villages. The dot on a map for your property is just a speck of the large piece of property purchased to build houses on. A Construction lien, If applicable is between the contractor and the builder. I have not found a single unsettled construction lean on a villages home.