New Home Title Insurance

[canajunfool]

Can anyone give me a good reason why I should purchase New Home Buyer Title Insurance for a brand new home in The Villages? The lending firm is pushing this product and I want to know if this is just another cash cow product they offer (like extended warranties on evey electronic you buy these days). I would think that if I had title issues with my property everyone else in the Village of Sanibel would too?

[Count'n the days]

I understand your logic and know others have expressed passing on the title insurance. I however knew I would sleep better at night if I purchased it. Wish I wasn't such a worrier. There are other threads on this subject that you may want to search. Good luck.

[784caroline]

For all the years in The Villlages I have never heard of a claim against the title. Now can it happen, of course, but knowing this operation I would suspect the chances are remote. From a national perspective if you look into title insurance, it is a cash cow for most companies that offer it .

Bottom line if you are buying NEW from the villages , it most likely is not needed. Before you go to closing I would suggest you ask for a "Contractors Sworn Statements to Owner and Final Release of all Liens"....The Villages will provide you this at closing or shortly afterwards.

If you are buying resale from a home owner, then you may want to seriously consider Owners Title Insurance ....which is different than what the bank requires. An remember the insurance amount is only the the amount of the loan...not the value of the house itself.

[jimbo2012]

If you get simultaneous policies it's only a few hundred $, like less than 400

[Challenger]

I was in the community banking business for over 40 years and financed thousands of homes . Never worked for or received any compensation from a Title insurrance co. I have seen Title insurance companies expend extremely large amounts of money defending the ownership rights of property owners from fradulent claims , claims where ther was improper sale of land 50 or 100 years previously, governmental claims. etc. IMHO it is unwise to go without this coverage especially since the premiums are paid once and provide coverage for the full term of the policyholder's ownership of the property. I would suggest consulting with an experienced RE attorney , not involved with the transction before going "naked"

[2 Oldcrabs]

We bought title insurance & live in Sanibel. Banks require it if you get a loan. Banks like to protect their bottom line. I like to sleep at nite.:read:

[graciegirl]

We paid cash twice on new homes here. Didn't buy title insurance here. Would ALWAYS buy title insurance in old life.

To each his own.

We thought about it and talked to others who we knew to have good sense and decided we didn't need it....HERE.

If you borrow money then you pay for your home with money of people who want to be darn assured THEIR investment is safe.

Makes sense to me.

[mulligan]

To keep the record straight, banks require lender's title insurance. That does NOT protect the owners' equity, only the mortgage amount.

[Challenger]

Wikipedia has a complete explanation of The Title Insurance Industry and their products.

Search "Title Insurance" = Long article, which will explain why buying from a great developer doesn't protect aqainst claims that may date back 100 plus years.

[Bonanza]

If you get simultaneous policies it's only a few hundred $, like less than 400

A simultaneous issue title insurance policy will probably be more than $400 unless it is a very inexpensive property. The fee is based on the price of the home. None of the money goes to line the pocket of Morse, unless he personally owns the title company. It is, however, a fee regulated by Florida law so you can't be gouged. If there is a previous existing policy, you can gain the benefit of a re-issue policy which will save you a couple of bucks.

[Challenger]

Wikipedia has a complete explanation of The Title Insurance Industry and their products.

Search "Title Insurance" = Long article, which will explain why buying from a great developer doesn't protect aqainst claims that may date back 100 plus years.

Those who advise not to buy will also refuse to pay the claim ,if and when it occurs. Title issues can arise regardless of how good the developer or how careful. Before you decide against please search the literature and don't rely on the advice of people who are inexperienced or untrained in this subjest.

[echo11]

I choose to purchase title ins on a new house. It is just that- insurance. The cost for mine was $1541.

[Villageswimmer]

To keep the record straight, banks require lender's title insurance. That does NOT protect the owners' equity, only the mortgage amount.

Really? So, as the principal decreases over time, so does the value of the title insurance? Never heard this before.

[GPGuar]

For all the years in The Villlages I have never heard of a claim against the title. Now can it happen, of course, but knowing this operation I would suspect the chances are remote. From a national perspective if you look into title insurance, it is a cash cow for most companies that offer it .

Bottom line if you are buying NEW from the villages , it most likely is not needed. Before you go to closing I would suggest you ask for a "Contractors Sworn Statements to Owner and Final Release of all Liens"....The Villages will provide you this at closing or shortly afterwards.

If you are buying resale from a home owner, then you may want to seriously consider Owners Title Insurance ....which is different than what the bank requires. An remember the insurance amount is only the the amount of the loan...not the value of the house itself.
:agree:

[OBXNana]

We're now within 48 hours of signing for a new construction. (The 30 day part of the contract is like watching a clock.) The contract for purchase states there is a clear title. Our lender is fine with the wording on the contract and has approved the loan. We are not using a Village lender.

We have purchased at least 40 houses during our marriage and always purchase title insurance for existing property. With The Village purchase, the legal document to purchase has a clear title to the property. Yes, we are one of those people that reads every word of a legal document before signing.

[Phanatic Luvr]

You can also request a letter from The Villages, stating that all sub-contractors, who did work on your home, sign off that they were paid in full.

[OBXNana]

Page 2, item #1 of the contract to purchase a property in The Villages states there is a Warranty Deed issued to the buyer from the seller. In other purchases we have had outside of The Villages, this is recorded at the Court House at the time of closing and mailed soon after.

"Warranty Deed:
An instrument that transfers real property from one person to another and in which the grantor promises that title is good and clear of any claims.

A deed is a written instrument that transfers the title of property from one person to another. Although many types of deeds exist, title is usually transferred by a warranty deed. A warranty deed provides the greatest protection to the purchaser because the grantor (seller) pledges or warrants that she legally owns the property and that there are no outstanding liens, mortgages, or other encumbrances against it. A warranty deed is also a guarantee of title, which means that the seller may be held liable for damages if the grantee (buyer) discovers the title is defective."

This includes, but is not limited to, Sub Contractors.

[villager]

To clarify, the contractor's affidavit signed by all who worked on your new home is entirely separate from title insurance. All the contractors are signing is a form saying they have been paid for their work. Apples and Oranges to title insurance.

The warranty deed you receive at closing from The Villages gives you clear title to the property up to the time of closing, based on all information The Villages has at the time of closing. If someone comes forward the NEXT day and says they have an interest in your property, you have NO recourse back to The Villages. Note, I said up to the time of closing you are covered. The Villages doesn't have that crystal ball to know what could happen in the future and will not guarantee future events. Would you? Be reasonable. And, TAKE THE VILLAGES OUT OF THE EQUATION! They are no different than any other developer, while everyone may think they are. Title insurance is like any insurance, you are glad you have it if/when you need it. The cost of defending your title is VERY expensive and title insurance will pay for all attorney's fees and any restitution needed to be paid. Title insurance covers any human errors (I'm sure we've all encountered human error in business at least once), covers if someone's property was not probated properly and a claim is made, covers if someone signed a document regarding the property and didn't have the right to do so, and many, many, many other circumstances. Title insurance covers the time from the first owner of the property up to you. Sorry to ramble, but I've been in the lending industry waaayyyyy too long and have seen too many instances of title issues that were a complete surprise to the owner. Make a wise decision and purchase the title insurance! After all, why wouldn't you want to protect one of the biggest assets you own - your house! The insurance commissioner for the state of Florida sets the price for the title insurance - no attorneys, developers, sales agents, etc. This is not the time to be cheap. You'll spend more on that new TV and sound system than your title insurance will cost. And, no, I do not own, work for, or have any financial interest in a title company.

[Challenger]

To clarify, the contractor's affidavit signed by all who worked on your new home is entirely separate from title insurance. All the contractors are signing is a form saying they have been paid for their work. Apples and Oranges to title insurance.

The warranty deed you receive at closing from The Villages gives you clear title to the property up to the time of closing, based on all information The Villages has at the time of closing. If someone comes forward the NEXT day and says they have an interest in your property, you have NO recourse back to The Villages. Note, I said up to the time of closing you are covered. The Villages doesn't have that crystal ball to know what could happen in the future and will not guarantee future events. Would you? Be reasonable. And, TAKE THE VILLAGES OUT OF THE EQUATION! They are no different than any other developer, while everyone may think they are. Title insurance is like any insurance, you are glad you have it if/when you need it. The cost of defending your title is VERY expensive and title insurance will pay for all attorney's fees and any restitution needed to be paid. Title insurance covers any human errors (I'm sure we've all encountered human error in business at least once), covers if someone's property was not probated properly and a claim is made, covers if someone signed a document regarding the property and didn't have the right to do so, and many, many, many other circumstances. Title insurance covers the time from the first owner of the property up to you. Sorry to ramble, but I've been in the lending industry waaayyyyy too long and have seen too many instances of title issues that were a complete surprise to the owner. Make a wise decision and purchase the title insurance! After all, why wouldn't you want to protect one of the biggest assets you own - your house! The insurance commissioner for the state of Florida sets the price for the title insurance - no attorneys, developers, sales agents, etc. This is not the time to be cheap. You'll spend more on that new TV and sound system than your title insurance will cost. And, no, I do not own, work for, or have any financial interest in a title company.

Well written and factual. I also have been in the real estate lending business for more than 50 years and would not ignor the oppurtunity to purchase buyers insurance.

[asianthree]

You can also request a letter from The Villages, stating that all sub-contractors, who did work on your home, sign off that they were paid in full.

:agree:

[buzzy]

can you purchase title insurance a few years after closing?

[KeepingItReal]

can you purchase title insurance a few years after closing?



According to Zillow you can only buy it at closing, sometimes according to some there is a possibility also if you are refinancing.

Title Insurance for the Buyer - Zillow (http://www.zillow.com/home-buying-guide/what-is-title-insurance/)

he Title Search. In other words, nobody wants an unpleasant surprise after the settlement. ... The only time you can purchase insurance is at closing.

[Madelaine Amee]

Wikipedia has a complete explanation of The Title Insurance Industry and their products.

Search "Title Insurance" = Long article, which will explain why buying from a great developer doesn't protect aqainst claims that may date back 100 plus years.

We paid cash for our property, but we still bought the insurance. Was inexpensive and we got peace of mind in return. To each his own!

[buzzy]

According to Zillow you can only buy it at closing, sometimes accoring to some there is a possibility also if you are refinancing.

Title Insurance for the Buyer - Zillow (http://www.zillow.com/home-buying-guide/what-is-title-insurance/)

he Title Search. In other words, nobody wants an unpleasant surprise after the settlement. ... The only time you can purchase insurance is at closing.

Interesting. Our first adjustment (at the end of three years) should be in Feb. We may end up re-financing.