Title insurance

[rrtjp]

Buying brand new construction in Citrus Grove and was wondering if I really need to spend $1232.00 on title insurance?

[retiredguy123]

I purchased title insurance when I bought a new house, but it is optional and the risk of having a title issue is probably pretty low. But, the insurance will cover you as long as you own the property.

[Stu from NYC]

Buying brand new construction in Citrus Grove and was wondering if I really need to spend $1232.00 on title insurance?

We bought. What happens if the Citrus Grove Indian tribe suddenly claims they own the land and they win their case.

If you have a mortgage your bank will insist on a policy protecting them.

[davem4616]

it's the same as any other insurance you buy....you hope that you never have to use it

[Koapaka]

Paying cash....your option. Getting financed....not so much

[Babubhat]

Awfully big risk not to buy even though chance of using it minimal

[Boomer]

When buying a house for cash, keep in mind that makes you the bank. Therefore, it is wise to do what a bank would do.

[rrtjp]

Thank you everyone. The bank is not requiring I get it but like some have said here for peace of mind I will be getting it. Like any insurance policy, you hope you never need it but if you do you are glad you got it.
10 days and counting till we close in TV. Excited and nervous.

[DaleDivine]

Seen a few posts on here where people have needed it. Not worth the risk of not having it. Like health insurance, I would be afraid to walk down the street without it.
:bigbow::bigbow:

[Bay Kid]

Only one payment for protection until you sell. Good insurance.

[Luggage]

First off the rates are set by the state so it's quite reasonable for the risk reward ratio. Secondly I believe and please correct me somebody if I'm wrong it will also help protect you in case you're lot lines are off and you get sued by your neighbors. I've seen this happen before for someone build something two feet over The line

[BlackHarley]

I thought it was crazy too when we bought new. A pre-owned home makes more sense, but we wrapped it into the closing costs anyway....done.

[mikemalloy]

[QUOTE=Stu from NYC;1998659]We bought. What happens if the Citrus Grove Indian tribe suddenly claims they own the land and they win their case.

You sue the seller ie. The Villages. I'm pretty sure that they are collectable.

[retiredguy123]

[QUOTE=Stu from NYC;1998659]We bought. What happens if the Citrus Grove Indian tribe suddenly claims they own the land and they win their case.

You sue the seller ie. The Villages. I'm pretty sure that they are collectable.
I agree, but who wants to sue someone? With title insurance, the insurance company does the suing.

[Petersweeney]

IMHO title insurance is right up there with annuities and whole life insurance policies dumb and dumber….anyone can go do a title search at the courthouse…..or even online

[Villages Kahuna]

If you’re paying cash for your new house, you won’t have to buy a policy. If you’re purchasing using a mortgage loan your lender will probably require a title insurance policy. Whether you choose to buy the protection offered by the insurance if not required is up to you. In the highly unlikely event that you’d ever need it’s protection to pay fir the legal defense of your ownership it would be too late to purchase the policy .

The title insurance company used by the Closing Department is another business that is owned by the Developer, so the title insurance premium you’d pay becomes part of his profit. That doesn’t say that the title policy you’d buy is defective in any way—it’s probably just as good as one from any other title insurance company. Obviously the Developer, who owns the land that your house is built on, has title insurance protecting his ownership of the property.

[MidWestIA]

I did not new if a problem comes up I and a bunch of people will sue The Villages - I did used

[Goinghiway]

You're buying from the Builder......how many lawyers have work on this transaction.??? Your recourse would be to the builder....do you think they are going out of business any time soon????

[PJackpot]

Buying brand new construction in Citrus Grove and was wondering if I really need to spend $1232.00 on title insurance?
That’s a ridiculous amount of money for title insurance. I would decline and shop for your own.

[sail33or]

I have a Lawyer friend who told me he started a Title Insurance Company because it was like taking free money. The premiums far exceed the rare cases of Title Defense. He said if you actually read the fine print (which no one does) just about every conceivable thing that could happen is excluded.

Then there is the ultimate lawyer weasel clause that specifically states that anything that the Title Company could not have known is excluded. It is actually very easy to do a Title search yourself going pretty far back. But yes, Indians, squatters, Spanish Explorers could come back and claim Title.

[retiredguy123]

That’s a ridiculous amount of money for title insurance. I would decline and shop for your own.
The State of Florida determines the cost for title insurance. Shopping around will not change the cost.

[Boomer]

That’s a ridiculous amount of money for title insurance. I would decline and shop for your own.

Not sure, but I am pretty sure the cost of a title insurance policy is based on the cost of the house, and it insures for the sell price only, does not include any increase in value.

If I am wrong, somebody here will tell me. I hope.

Boomer

[retiredguy123]

I have a Lawyer friend who told me he started a Title Insurance Company because it was like taking free money. The premiums far exceed the rare cases of Title Defense. He said if you actually read the fine print (which no one does) just about every conceivable thing that could happen is excluded.

Then there is the ultimate lawyer weasel clause that specifically states that anything that the Title Company could not have known is excluded. It is actually very easy to do a Title search yourself going pretty far back. But yes, Indians, squatters, Spanish Explorers could come back and claim Title.
I think that is true for just about any insurance you buy. But, over the years, you will probably spend more than 10 times as much on homeowners insurance as the one time title insurance cost. Although, I agree that the risk of a defective title on a new house is very low.

And, based on the amount of money spent on television advertising for auto insurance, I think that is probably a lot more profitable then title insurance.

[ellenwelsh]

Many, many years (more than 40) in the lending and closing business. I bought my house here for cash and didn’t buy title insurance. Felt it wasn’t really necessary since there has been nothing here for eons except cantaloupes and watermelons. I have not ever known of an instance where title insurance is needed. Prior ( and in this case, none ) transactions can be corrected. I used the money that would have gone to it to have the inside painted, etc.

[retiredguy123]

Many, many years (more than 40) in the lending and closing business. I bought my house here for cash and didn’t buy title insurance. Felt it wasn’t really necessary since there has been nothing here for eons except cantaloupes and watermelons. I have not ever known of an instance where title insurance is needed. Prior ( and in this case, none ) transactions can be corrected. I used the money that would have gone to it to have the inside painted, etc.
Probably not needed for a new house. But, I once bought a pre-owned house where the title search revealed that a previous owner, years earlier, had sold the house, and the ex-wife of a the jointly owned house had been the only signer on the deed. The lawyer had to find the ex-husband, who was out-of-state, and get his signature before the house could be sold again.

[Haggar]

Buying brand new construction in Citrus Grove and was wondering if I really need to spend $1232.00 on title insurance?

Bought title insurance for a house many years ago. Found out there was an IRS lien for $14,000 that was missed. Turned it over to title company and they took care of it right away.

[Blueblaze]

If it's a new house in The Villages, your risk in infinitesimal, and the reason it's so high is because it's just another Villages revenue source, through The Village's own title company. I wouldn't buy it if there's not a mortgage company demanding it. The SELLER is supposed guarantee their title, not you. If you were buying a used house in The Villages, THE SELLER would be the one buying the title insurance, and I don't understand why a developer gets away with shifting the risk to you.

Title insurance is like any other insurance, though. If it helps you sleep at night, go for it. Personally, I only insure against hazards that have a measurable risk that I can't afford to absorb. At my age, there aren't many of those left beyond homeowner's and automobile liability.

[BFISHER54]

Buying brand new construction in Citrus Grove and was wondering if I really need to spend $1232.00 on title insurance?

We opted not to. If there’s a issue with title it going to affect hundreds of homes since the villages buys large parcels of land. So if there’s a problem the villages should have no choice but to step in and resolve the issue.

[KRMACK55]

Buying brand new construction in Citrus Grove and was wondering if I really need to spend $1232.00 on title insurance?
You do not need title insurance if you are paying cash. I didn’t and no problems. It is one of the largest scams in the USA.
I sold my house last month and no issues as it was a cash buyer as well.

[KRMACK55]

When buying a house for cash, keep in mind that makes you the bank. Therefore, it is wise to do what a bank would do.
Title insurance only means that prior owner has no contractors liens and taxes / impact fees are paid. The title insurance provides no protection in title fraud or title dispute. Waste of money.

[Janette1]

total ripoff

[retiredguy123]

If it's a new house in The Villages, your risk in infinitesimal, and the reason it's so high is because it's just another Villages revenue source, through The Village's own title company. I wouldn't buy it if there's not a mortgage company demanding it. The SELLER is supposed guarantee their title, not you. If you were buying a used house in The Villages, THE SELLER would be the one buying the title insurance, and I don't understand why a developer gets away with shifting the risk to you.

Title insurance is like any other insurance, though. If it helps you sleep at night, go for it. Personally, I only insure against hazards that have a measurable risk that I can't afford to absorb. At my age, there aren't many of those left beyond homeowner's and automobile liability.
I have always bought an owner's title insurance policy when I bought a pre-owned house. I never bought one when I sold a house.

When a mortgage company demands a title insurance policy, it is a lender's policy that does not protect the buyer. You would need to buy a separate owner's policy to do that.

[retiredguy123]

If it's a new house in The Villages, your risk in infinitesimal, and the reason it's so high is because it's just another Villages revenue source, through The Village's own title company. I wouldn't buy it if there's not a mortgage company demanding it. The SELLER is supposed guarantee their title, not you. If you were buying a used house in The Villages, THE SELLER would be the one buying the title insurance, and I don't understand why a developer gets away with shifting the risk to you.

Title insurance is like any other insurance, though. If it helps you sleep at night, go for it. Personally, I only insure against hazards that have a measurable risk that I can't afford to absorb. At my age, there aren't many of those left beyond homeowner's and automobile liability.
It's not appropriate to fault the developer. The developer is not shifting the risk to the buyer. All title companies and others who do closings offer the buyer an owner's title insurance policy. It is a standard part of the closing process everywhere I have ever purchased a property. Offering the optional title insurance is definitely not unique to The Villages.

[mikemalloy]

[QUOTE=mikemalloy;1998841]
I agree, but who wants to sue someone? With title insurance, the insurance company does the suing.
I'll keep the $1000+ and risk the suit. And who's to say that the insurance company will balk and you'd have to sue them?

[damille]

The bank (if the property is financed) will require it to protect themselves. An owner's policy is usually a bit less but, in my opinion, is very important. We owned a property up North for 30 years and found out during a re-finance, years after the original purchase, that the boundaries were off by a few feet. The original title examiner had missed it. The title insurance took care of everything and the re-finance was not held up at all.

[Howone]

Title insurance covers what is not recorded. Title insurance is used in only 3 percent of all the real estate transactions nation wide. Buying in a sub division the risk is minimal.

[Juliebythesea]

Thank you everyone. The bank is not requiring I get it but like some have said here for peace of mind I will be getting it. Like any insurance policy, you hope you never need it but if you do you are glad you got it.
10 days and counting till we close in TV. Excited and nervous. the seller usually pays title insurance and picks the closing company

[dougawhite]

I have a Lawyer friend who told me he started a Title Insurance Company because it was like taking free money. The premiums far exceed the rare cases of Title Defense. He said if you actually read the fine print (which no one does) just about every conceivable thing that could happen is excluded.

Then there is the ultimate lawyer weasel clause that specifically states that anything that the Title Company could not have known is excluded. It is actually very easy to do a Title search yourself going pretty far back. But yes, Indians, squatters, Spanish Explorers could come back and claim Title.

Ditto on that! I always complained that it's a waste to spend for title insurance on the 8 homes we bought over the years. If you think the title insurance company will back you up in case of a dispute, think again. They will not do anything to help and you will be on your own to pay for an attorney and sue someone if there is ever a property problem. However, so that I can live a happy like with my wife, I bought it every time...:loco:

[Blueblaze]

I have always bought an owner's title insurance policy when I bought a pre-owned house. I never bought one when I sold a house.

When a mortgage company demands a title insurance policy, it is a lender's policy that does not protect the buyer. You would need to buy a separate owner's policy to do that.

I guess we live in different universes. This year I was required to buy title insurance when I sold a house in Texas. I used that money to buy three houses in Florida, and the seller paid the title insurance on each of them -- as it should be. Why would the buyer be required to guarantee that the seller has a marketable title?

But you can buy insurance for anything you want. The title company will certainly offer to sell a policy to the buyer. The question is, do you need it? I guess if I lived in a universe where sellers don't have to guarantee their title, I'd buy an owner's policy, too.

[DWatkins]

Buying brand new construction in Citrus Grove and was wondering if I really need to spend $1232.00 on title insurance?

We purchased a new build in Indiana several years ago. Our builder bought the lot from the previous owner who was developing the lots. It seems that the previous lot owner’s daughter used our lot to secure a loan that she defaulted on. The bank came after us now that a beautiful house was built on the lot. I contacted the title company and they took care of everything. I’ve never regretted paying for title insurance.

[retiredguy123]

I guess we live in different universes. This year I was required to buy title insurance when I sold a house in Texas. I used that money to buy three houses in Florida, and the seller paid the title insurance on each of them -- as it should be. Why would the buyer be required to guarantee that the seller has a marketable title?

But you can buy insurance for anything you want. The title company will certainly offer to sell a policy to the buyer. The question is, do you need it? I guess if I lived in a universe where sellers don't have to guarantee their title, I'd buy an owner's policy, too.
You may be confusing a title search and guarantee of clear title with a title insurance policy. Yes, the seller pays for a title search, but a title insurance policy guarantees a clear title for as long as you own the property. It would make no sense for a seller to buy a lifetime title insurance policy on a property that they do not own. Once they sell the property and get their money, why would they need a title insurance policy? Typically, sellers do not buy title insurance, but they do pay an attorney or a title company to do a title search. This is a one time process to make sure that a clear title is transferred to the buyer. It is not a title insurance policy.

[DebeeDoo]

Buying brand new construction in Citrus Grove and was wondering if I really need to spend $1232.00 on title insurance?

I just bought in Citrus Grove and I did not buy the owner’s title policy. (the bank requires one. The owner’s is optional.) The closing estimates had it listed for $1200, I said no, I don’t want it, then they came back and said it was only $268.00 and the estimates are “always high.” I told them I don’t care how inexpensive it gets, I do not need it. So if you feel that someone somewhere could come and lay claim to your tiny bit of this huge development, get the policy but hold out for a second offer. They’re just trying to get as much money as possible out of every sale.

[Koapaka]

Thank you everyone. The bank is not requiring I get it but like some have said here for peace of mind I will be getting it. Like any insurance policy, you hope you never need it but if you do you are glad you got it.
10 days and counting till we close in TV. Excited and nervous.
Old joke....your life insurance salesman is your BEST friend....you are betting him you are going to die, and he is betting you dont. :):pray:

[rrtjp]

Thats interesting. Thanks!

[tophcfa]

I would ask your closing attorney why you need title insurance when you are already paying them to do a title search to insure that the property you are purchasing is free and clear of any issues? If the attorney stands behind their work, why is title insurance necessary???

[TSO/ISPF]

I just bought in Citrus Grove and I did not buy the owner’s title policy. (the bank requires one. The owner’s is optional.) The closing estimates had it listed for $1200, I said no, I don’t want it, then they came back and said it was only $268.00 and the estimates are “always high.” I told them I don’t care how inexpensive it gets, I do not need it. So if you feel that someone somewhere could come and lay claim to your tiny bit of this huge development, get the policy but hold out for a second offer. They’re just trying to get as much money as possible out of every sale.


We bought a home in 2019 and the closing document shows a charge of 1700 for title insurance from the sellers funds. Did the seller get ripped off? This was all done through Peninsula Land and Title. I never met the seller until months after the sale because we closed over the phone using docusign.

[Mrfriendly]

Not sure what you mean by Bank does not require it? If using mortgage money your lender DOES require title insurance to protect their investment of lending you money to buy the property. I’m in the title business.

[Blueblaze]

You may be confusing a title search and guarantee of clear title with a title insurance policy. Yes, the seller pays for a title search, but a title insurance policy guarantees a clear title for as long as you own the property. It would make no sense for a seller to buy a lifetime title insurance policy on a property that they do not own. Once they sell the property and get their money, why would they need a title insurance policy? Typically, sellers do not buy title insurance, but they do pay an attorney or a title company to do a title search. This is a one time process to make sure that a clear title is transferred to the buyer. It is not a title insurance policy.

I think you might be confusing the laws in the state you moved from with Florida.

I'm sorta up on this, being the paranoid investor that I am, and having done four house deals since January. I suggest you pull out your closing statement on your Florida house and see which column the title charges are in. Oh, they'll certainly offer you an "Owners" title policy, but yours is optional -- the seller's isn't. Why should he buy insurance for a property he doesn't own? Because he's required by law to guarantee that he has a marketable title.

But it depends on what state you're in. When I lived in Oklahoma, "Title Search" was something the BUYER did to make sure he wasn't buying a pig in a polk. It was completely "buyer beware". I'd never heard of title insurance until I moved to Texas.

[retiredguy123]

I think you might be confusing the laws in the state you moved from with Florida.

I'm sorta up on this, being the paranoid investor that I am, and having done four house deals since January. I suggest you pull out your closing statement on your Florida house and see which column the title charges are in. Oh, they'll certainly offer you an "Owners" title policy, but yours is optional -- the seller's isn't. Why should he buy insurance for a property he doesn't own? Because he's required by law to guarantee that he has a marketable title.

But it depends on what state you're in. When I lived in Oklahoma, "Title Search" was something the BUYER did to make sure he wasn't buying a pig in a polk. It was completely "buyer beware". I'd never heard of title insurance until I moved to Texas.
I purchased my house from the developer. The only title insurance policy purchased at that time was my owner's policy that I paid for, and it was optional. I have sold houses in several other states. As a seller, I never bought or paid for a "title insurance policy" either for myself or for a buyer. But, as a seller, I always paid the title company or the closing attorney to do a "title search" to examine the title for any defects. I understand that the title search is a process where you are paying for the attorney's expertise to examine the title. The attorney is responsible for his/her work and could be sued, but they are not providing an ongoing insurance policy in the case where a mistake or defect may be discovered in the future. I know that some states have different requirements.

[Frame44]

The lender always gets a title policy. The borrower/owner has an optional policy that covers their interests not the bank.

[Dotneko]

Its a waste of money on a new build in the middle of a development.
Ask yourself - would the Villages be selling the title insurance if there was the slightest chance there was a defect in the title they passed to you?