Closing costs

[Terriy]

Looking at a list of estimated closing costs on a new patio villa in Hawkins. One of the fees is Owners Title (Optional). Can someone explain the need for this on a new never occupied home? Looking at $7,178 in total closing costs and that doesn't include prepaids and reserves. I'm not locked into this lender yet and am definitely shopping around. Thanks for your help!

[Stu from NYC]

Would think it is title insurance for the land and would cover you.

Financial institution will want title insurance but that will only cover the balance of the mortgage no protection to you.

[retiredguy123]

I always buy the owners title insurance, but some people think that it is not needed for a new house.

It will insure that you will have a clear title forever.

[charlieo1126@gmail.com]

Have 5 new homes here , there is no need . I know many people on there second and 3rd née home none took it

[RangerJoe]

We opted out of the Owner's title insurance. Of course the lender's policy ($2400) was not an option. My thought on the Owner's coverage was that it was not necessary considering the house was new construction. The Villages development company purchases vast amounts of agricultural land to build on. There is due diligence performed on title search of that land because any future claim to title of that land would not only effect the individual homes built, but also the rec centers, golf courses, trails/roads and any other amenities.

[JohnN]

You don't need title insurance on a new dwelling.

[Neils]

You don't need title insurance on a new dwelling.

Do you know who owned the land over the past maybe 100 years?
A claim from a distant heir can get expensive to defend

[Scott O]

Do you know who owned the land over the past maybe 100 years?
A claim from a distant heir can get expensive to defend
And you don’t think that with the vast experience and lawyers of The Villages that was all previously taken care of...They didn’t become the largest retirement community in the country from careless real estate dealings...smdh

[DrBrutyle109]

You can shop around and probably get costs for a little less, but you have to realize that closing costs are a wat to basics steal money for the organizations that you pay. They’re a joke no matter who you go with

[Worldseries27]

and you don’t think that with the vast experience and lawyers of the villages that was all previously taken care of...they didn’t become the largest retirement community in the country from careless real estate dealings...smdh
idk. Maybe someone will
make a claim to build a casino.
just saying

[Weavej2718]

In the absolute worst case scenerio, which is unlikely, you could be asked to leave your home. The lenders coverage would pay off your home loan. If you did not choose the owners title you would walk away with $0.00. Equity is gone. So....i agree it rarely ever happens, am i willing to lose my entire equity for $200-300 policy...? It is a one time fee, and covers from the day of closing backwards in time. As you make payments the lenders exposure goes down while your exposure goes up.

[banjobob]

Do you know who owned the land over the past maybe 100 years?
A claim from a distant heir can get expensive to defend

A maybe one in a million chance since the land has been searched by the developer.

[EileenK]

Actually it is FL law that the owner of the property must give a free & clear title, however, TV passes this cost on to the consumer. One of the many deceptions we discovered about TV.

[retiredguy123]

In the absolute worst case scenerio, which is unlikely, you could be asked to leave your home. The lenders coverage would pay off your home loan. If you did not choose the owners title you would walk away with $0.00. Equity is gone. So....i agree it rarely ever happens, am i willing to lose my entire equity for $200-300 policy...? It is a one time fee, and covers from the day of closing backwards in time. As you make payments the lenders exposure goes down while your exposure goes up.
I think the policy cost is more like $1,000+. But, it is a one time fee, and over time, the cost is relatively low compared to your homeowners insurance, which you need to pay every year.

[Micki]

I always buy the owners title insurance, but some people think that it is not needed for a new house.

It will insure that you will have a clear title forever.

It does not insure that you have a clear title forever. What it does do is pay you the amount the title insurance policy is worth if someone comes around and proves the property is actually their’s and your seller had no rights to sell the property to you or anyone else.

[Alaska Butch]

Title insurance guarantees no lie s or encumbrances in your property when you take possession. Usually no issues but occasionally there is. They do thorough research for mechanic liens, unpaid taxes etc before underwriting the policy.

[Micki]

You don't need title insurance on a new dwelling.

Not necessarily true, other people have owned that land in the past. Title insurance assures the buyer that if a previous owner, no matter how long ago, can prove that property still legally belongs to them, that the buyer will receive back the amount of money the title insurance policy is for.

[richs631]

You don’t need it. The developer is well established.

[72eagleman]

I just closed on a resale home in Monarch Grove. The cost of the owners title insurance was paid for by the seller at zero cost to me.

[pgettinger01]

It started with native american indians making claims. There are some actions pending in different states.

[Micki]

And you don’t think that with the vast experience and lawyers of The Villages that was all previously taken care of...They didn’t become the largest retirement community in the country from careless real estate dealings...smdh

True, but title insurance insures against the unlikely possibility that the lawyers slipped up and made a mistake.

[Neils]

And you don’t think that with the vast experience and lawyers of The Villages that was all previously taken care of...They didn’t become the largest retirement community in the country from careless real estate dealings...smdh

Gee. I must be forgetful. Did not remember that all The Villages lawyers were looking out for my interests and protecting me from potential lawsuits.
Only in Fl are frivolous legal challenges not allowed.

So it seems you are right,,, waste of money to protect my investment.

[Micki]

Actually it is FL law that the owner of the property must give a free & clear title, however, TV passes this cost on to the consumer. One of the many deceptions we discovered about TV.

In Illinois it was required that the seller paid for the owners title insurance policy. Got here and they’re like “buy it yourself”. Couldn’t believe that they have no responsibility to insure me for what they sold the property to me for.

[Dlbonivich]

Lender usually require a lender policy, it doesn’t just cover your house it also protects the lender on the land transfer and any survey issues, public utility issues etc. They want to protect themselves. More than likely a lender is going to require a policy.

[Dlbonivich]

New construction is different than resale. I have a real estate license in 3 states. In all 3 the buyer paid for title policy on new construction

[yurkie]

IF Memory serves me,... I believe that My understanding was that the Seller normally pays for the Title Insurance, which I believe did when I sold my Villages house. However, I believe I remember being told that, a Florida New Construction, can reverse to the Buyer. I think got screwed on both sides of the deal!

[wsachs]

I've always had a real estate lawyer with me at every closing, whether for a new home or used. More than eight so far. The cost was small and since no one really represents you at the closing when your make such a large purchase, it was worth it. In three cases my lawyer questioned some of the closing costs since he had the papers in advance and at closing I saved more than his cost. Some one knowledgable about the real estate laws of the state and county you're in would be able to explain everything about the closing rather than getting information from this kind of forum.

[Sunfla1998@gmail.com]

Title insurance in not necessary but it is required if you finance your home. The lender requires it. The purpose is someone from the past could claim your property from an old bill of sale, wills, etc. If so you would need an attorney to represent you to protect your property. The title insurance is good as you own the property.

[oneclickplus]

Looking at a list of estimated closing costs on a new patio villa in Hawkins. One of the fees is Owners Title (Optional). Can someone explain the need for this on a new never occupied home? Looking at $7,178 in total closing costs and that doesn't include prepaids and reserves. I'm not locked into this lender yet and am definitely shopping around. Thanks for your help!

If an Indian tribe comes back and successfully convinces a court / jury that they own the land under your house, owner's title insurance is your economic parachute; otherwise you could lose everything. The mortgage company has their insurance for the same reason - it's called title defect.

[retiredguy123]

I get it that some people opt out of the owners title insurance on a new house because they think the risk is very low. But, the lender always requires a lenders title insurance policy as part of the closing costs. If the risk is so low, why don't the lenders opt out of the policy and reduce the closing costs to be more competitive with other lenders?

[wyatt1963]

The answer on a new construction purchase when financing is to ask the title company for a simultaneously Issue title policy
Problem solved

[retiredguy123]

The answer on a new construction purchase when financing is to ask the title company for a simultaneously Issue title policy
Problem solved
Huh? How does that solve the problem? Are you saying they will give you an owners title policy for free?

[Fisherman]

As a former banker for 37 years and mortgage lender, I would NEVER invest money in a home without buying a owners title insurance policy. Even if you are paying cash, you become the bank! If the bank or lender requires it to protect their investment, why wouldn’t you? I built one home here and I bought a resale. The Villages lawyers fought me on using my own real estate attorney in Gainesville to the point that they wanted to withhold the keys till the next business day after the money was wired in to their account. My attorney won that battle. On both purchases, I did due diligence, just like a bank does....survey, owners title insurance policy, appraisal, termite inspection and home inspection. If or when you decide to sell this property, you will have to provide one to the buyer. You will get a reduced price if you had the title search done when you purchased the property. I recently sold the house I built (new construction) and I was asked to provide, if I had them, a title policy, a survey, and a termite contract on a cash sale. They used these to get simple updates to them as new owners and we closed in 10 days. I gave copies to their realtor and the only pending issues were a home inspection and appraisal. Never say never to title issues. I have seen them in my career. And, more than you want to know about, with people not getting a proper survey. Seems like a small expense for peace of mind when you think about the purchase price of a home. Hope this helps future buyers and sellers, but in the end, it is each person’s choice. Last, but, not least, do you really want The Villages to represent you as both a buyer and a seller even if it is new construction?

[Bill14564]

I get it that some people opt out of the owners title insurance on a new house because they think the risk is very low. But, the lender always requires a lenders title insurance policy as part of the closing costs. If the risk is so low, why don't the lenders opt out of the policy and reduce the closing costs to be more competitive with other lenders?

Disclaimer: Not a real estate or banking lawyer.

My guess is the lender does not have a choice and is required by law to demand the insurance. Remember, the bank isn't playing with its own money, it is using its depositors' money to make these loans. Banking regulations looking out for depositors might limit the amount of risk a bank is allowed to take.

[Rlheinz19@yahoo.com]

All insurance is in it's simplest form is a wager. Insurance company is betting it won't happen and taking your bet that it will.

[retiredguy123]

You can shop around and probably get costs for a little less, but you have to realize that closing costs are a wat to basics steal money for the organizations that you pay. They’re a joke no matter who you go with
When you buy a new house in The Villages, I don't think you can shop around for a cheaper owners title insurance policy. The policy is issued by the developer's title company in conjunction with the title search done by the developer. I doubt that another company will sell you a title policy for a lower price.

[Krismaroney]

Hi Terry, Lender's title insurance protects the lender as security for making mortgage money available to a buyer. It does not protect the buyer. Owner's title insurance protects the buyer, lasts as long as you, the policyholder - or your heirs - has an interest in the insured property.



Looking at a list of estimated closing costs on a new patio villa in Hawkins. One of the fees is Owners Title (Optional). Can someone explain the need for this on a new never occupied home? Looking at $7,178 in total closing costs and that doesn't include prepaids and reserves. I'm not locked into this lender yet and am definitely shopping around. Thanks for your help!

[Bigmike18]

I am a retired title company owner,
Lets use car insurance as a comparison, there are two parts to car insurance. Liability coverage is for the other guy, if you have an accident, your liability insurance covers their damage and injuries, the other part is comprehensive, which covers you and your injuries.
Title insurance is similar, the lenders policy covers the lender if there is a title claim, the owners policy covers you and your home if a claim arises.
Over the 35 years in the title business, many claims came along that were unknown at the time of the original sale. So my advice is it is money well spent.
It is a one time premium, the owners policy provides coverage for all the years you own your home, with no additional premium.

[J1ceasar]

protects against builders liens as well as mortgage costs YOU have paid and lawyers fee's in future.


Would think it is title insurance for the land and would cover you.

Financial institution will want title insurance but that will only cover the balance of the mortgage no protection to you.

[rrb48310]

Actually it is FL law that the owner of the property must give a free & clear title, however, TV passes this cost on to the consumer. One of the many deceptions we discovered about TV.

That is how it is in Michigan, the seller supplies a clear title via title insurance. There use to be (back in the day I sold real estate) a credit to the seller if the previous title insurance policy was turned in.

[LuvtheVillages]

Looking at a list of estimated closing costs on a new patio villa in Hawkins. One of the fees is Owners Title (Optional). Can someone explain the need for this on a new never occupied home? Looking at $7,178 in total closing costs and that doesn't include prepaids and reserves. I'm not locked into this lender yet and am definitely shopping around. Thanks for your help!

Over $7,000! Wow!

There are places that will give a mortgage with no closing costs. You only have the prepaids and reserves to cover. Rate may not be the lowest, you have to compare that with the savings on closing costs and consider how long you will be in the house. (Average Villager moves 3 times.)

One place with no closing costs is Vystar Credit Union on 466A.

[spjvette]

At one time a title search was all that was needed. Title insurance is a lawyer’s scam

[Stu from NYC]

When the Village Indian tribe (or whatever tribe way back when) that used to control the land before they were forced out takes the Villages to court so as to build a casino sure would like to have some protection.

That is why we purchased our own title insurance policy.

[KRM0614]

Looking at a list of estimated closing costs on a new patio villa in Hawkins. One of the fees is Owners Title (Optional). Can someone explain the need for this on a new never occupied home? Looking at $7,178 in total closing costs and that doesn't include prepaids and reserves. I'm not locked into this lender yet and am definitely shopping around. Thanks for your help!
You don’t need title insurance if you are the first owner unless you are mortgaging it then your lender forces it on you ! Don’t use the Morse family bank called citizens.
Use a credit Union of even another bank outside Florida but commercial banks charge more for nothing. Don’t trust the sales people either they don’t just sell the houses they sell the villages bank title insurance and homeowners insurance. They quoted me 1200- for HO ins on a cash sale, I went to progressive insurance and my policy is $460-/yr. I also bundled my car insurance quotes MF me 600- for six months then they sent me a refund check

[KRM0614]

I always buy the owners title insurance, but some people think that it is not needed for a new house.

It will insure that you will have a clear title forever.
That’s not true at all whoever told you that is selling you more business.

[barblopps]

Looking at a list of estimated closing costs on a new patio villa in Hawkins. One of the fees is Owners Title (Optional). Can someone explain the need for this on a new never occupied home? Looking at $7,178 in total closing costs and that doesn't include prepaids and reserves. I'm not locked into this lender yet and am definitely shopping around. Thanks for your help!
What if you purchased a new home and opted out of the title insurance as it was optional. How does that affect your home when you go to sell it?

[newgirl]

That's crazy! Plus seller pays for title usually to prove clear title from liens.

[nick demis]

Do you know who owned the land over the past maybe 100 years?
A claim from a distant heir can get expensive to defend

There appears to be no limit to fear.

[chuckpedrey]

If you carry a mortgage the lender will require mortgagee title insurance and the closing agent will be able to offer owner title insurance at a substantial discount.

[Stu from NYC]

There appears to be no limit to fear.

But sometimes stuff does happen!

[retiredguy123]

Apparently, some people are confused between a title search and title insurance. The seller always has to do a title search to determine that they are able to convey a free and clear title to the buyer. If they make a mistake doing the title search, the buyer could sue them and the seller may be liable for damages or be required to correct a defective title. But, the buyer can purchase an optional title insurance policy that transfers the risk of a defective title from the buyer to an insurance company. So, if the title is defective, the insurance company, not the buyer, becomes responsible for suing the seller and/or correcting the title or paying damages caused by the defective title. It is possible that a defective title may not become an issue until years after the house has been sold, but the title insurance policy does not expire.

[Pairadocs]

idk. Maybe someone will
make a claim to build a casino.
just saying

LOL ! As they say, anything is possible right ? My opinion, I think most of us realize closing is much like your cable bill; some charges are actually legit and many are the "padding" for the corporate bottom line. While we chose not to pay it, some people who are just extra cautious, or routinely just worry excessively, are probably better off to just pay it (and yes, I think the lenders obviously know that, planting a small seed of doubt or fear works every time. Some people choose the minimum coverage in insurance, some do not feel comfortable unless they choose the maximum. The only thing people can really do is find out what MUST be paid (in a legal sense) and have someone HONESTLY explain the other/optional charges. When actually at the closing, I have noticed a tendency to really speed through this portion. Many people mistakenly believe because there is an attorney present, they HAVE an attorney and don't need to hire and pay one. The attorney present is not actually there to look after them, but to look after the lender involved. Never hurts to have someone looking after YOU.

[DecaturFargo]

Waste of money.

[retiredguy123]

What if you purchased a new home and opted out of the title insurance as it was optional. How does that affect your home when you go to sell it?
It should have no effect at all.

[Stu from NYC]

Waste of money.

unless or until it isnt.

[EileenK]

Looking at a list of estimated closing costs on a new patio villa in Hawkins. One of the fees is Owners Title (Optional). Can someone explain the need for this on a new never occupied home? Looking at $7,178 in total closing costs and that doesn't include prepaids and reserves. I'm not locked into this lender yet and am definitely shopping around. Thanks for your help!

Fl law that seller has to supply title insurance. Check with attorney. TV lies about everything.

[retiredguy123]

Fl law that seller has to supply title insurance. Check with attorney. TV lies about everything.
Not true. In Florida, owners title insurance is optional and not required to be paid by the seller. You may be thinking about a title search, not a title insurance policy. See post No. 51.

[candg1971peanut]

Ck Mid Florida

[mikemalloy]

We opted to not take the policy. My reasoning was that if there was a problem with the title, I'd sue The Villages. I'm pretty sure that they are collectable. Insurance companies sometimes deny coverage for some reason. I'd just a soon be in litigation with TV.

[biker1]

For a new home, I didn't see the need either, especially at a cost of $1200. For a resale, I definitely see a need. For a new home, if there was a defect in the transfer of the land to The Villages then literally hundreds, and perhaps thousands, of homes would be impacted. I am reasonably certain The Villages would have to deal with it or their ability to continue to sell new homes would be impacted.

We opted to not take the policy. My reasoning was that if there was a problem with the title, I'd sue The Villages. I'm pretty sure that they are collectable. Insurance companies sometimes deny coverage for some reason. I'd just a soon be in litigation with TV.

[Neils]

There appears to be no limit to fear.

No limit to ignorance of the law and reality of risk

[graciegirl]

Fl law that seller has to supply title insurance. Check with attorney. TV lies about everything.

It is negotiable who pays for title insurance in Florida.

Who Pays Title Insurance In Florida? • Real Estate Advice (https://www.manausa.com/blog/title-insurance-in-florida/)

I don't and never have sold real estate.

[Garywt]

I passed in it figuring the bank has it to cover any issues while we had a mortgage plus it was an expense I did not want to deal with.