Title Insurance on a new home
 

Does anyone know if we need Title Insurance if we are buying a brand new home from The Villages?

Cathy and Tony
Oceanside, NY
Atlantic Beach, NY
Soon to be Pennecampers :a040:

Personally, there is no way I would own any home without title insurance. While I'm sure that TV is pretty thorough in checking that there are no liens on property they have purchased, I just wouldn't be willing to take the chance. It's a small price to pay if someone comes along 10 years down the road and claims an inheritance or some sort of ancient land grant. Plus, it helps protect you from subcontractor liens.

All of that being said, it's not required and really up to you.

From my perspective, The land the villages is building on was all farm land and has not gone through a series of transfers as most individual homes normally do. Given that plus the fact that title insurance probably has one of the lowest payouts or claim ratios in the country, we decided against it. If you are taking out a loan you neeed to get it for the lender and then you would probably get one for yourself. If there ever is problem with the land title search, I think the Villages as a developer would have deeper pockets than an insurance company and just seeing how the Developer operates he would not want any problems such as this to taint the clean record they now have.

BTW at closing the Developer will give you (If asked IN ADVANCE) a notarized letter signed off by all the subcontractors waiving any future subcontractor claims to your new property. You should ask for "Contractors Sworn Statements to Owner and Final Release of Lien". I have 28 subcontractors who signed off everything from solar lights, Electrical to wood trim and windows etc.

It is an individual decision that each must decide on their own situation and level of risk. Maybe I am optimistic, but it would cost about $2-3,000 for total coverage...and yes total peace of mind. But I think this is a risk worth taking to pass on this insurance from this developer....but.... I also play Craps in a casino. If you are buying a resale..things could be entirely different.

Thank you to all of you for your advice. We decided to go with the title insurance. We've tried playing craps but haven't had much success with it.

Tony and Cathy
Oceanside, NY
Atlantic Beach, NY
Soon to be Pennecampers :a040:

Another issue would be mortgage or no mortgage. If you have a mortgage (I will have one until my northern home sells) then the bank is requiring it for their protection. My policy is optional but only a few hundred on top of what I have to pay anyway. Probably not needed - but.

Russ, it seems to be pretty cheap insurance in my book. I figure without it some obscure indian tribe will come out of the woodwork and own the whole place.

I choose not to pay the title insurance. I hope my cheapness doesn't come back and kick me where it hurts...the wallet.

We have not bought anything yet, but I am going to throw my opinion in here anyway.....

Banks require title insurance. Cash buyers will sometimes decide not to get title insurance because they do not have to. Cash buyers need to remember that they are the bank.

(But hey, I never pretend to have the definitive answer. I just like to think about things to think about. I play the stock market, but I have title insurance.)

Be sure to look at 784Caroline's post earlier in this thread. Caroline says that there are affidavits (with subs' signoffs) available to buyers of new homes if they request them in advance of closing. That's a really good piece of information to know. And whether you decide to buy title insurance or not, I think it would be wise to request those affidavits.

But what do I know. So please do not lie awake staring at the ceiling all night if you do not have title insurance.

Boomer

I figured better safe than sorry. And if anything comes up - like the Seminole Indians trying to claim my land for a casino - I have my title insurance.

Interesting thread, and great timing as I close on my new house early November. Whether to get title insurance never even crossed my mind, yet was always required and secured by my attorney when purchasing in the past. Guess I am so "punch drunk" with excitement I forgot all about that (but not about inspection prior to closing). Any info on where to get further info / pricing on title insurance?

784Caroline,

Thank you so much for this VERY useful information. We close on Oct 12 and I just used your info and sent an email to our agent asking for this letter! So again, THANK YOU so much for taking the time to share such helpful information.

We will be paying cash for our new home and I have thought in the past that Title Insurance was, in many cases, not needed, but have always bought it because my agent somewhat "scared" me into it -- but this time we want to decide for ourselves. Where do you get Title insurance from anyway? and is this a State by State thing? I will do some research myself, but if anyone would like to share their experience/info I'd love to hear it!

Thanks again and thanks to TOTV for making this forum available!

Your welcome...glad I could offer something you (and hopefully others) can use!

We are about to close in Oct. Still not sure if we will mortgage the property or not --but the Title insurance from our Bank estimate was $248.00

I think its a cheap hedge in the long run . Also one of my best friends is the regional director of a title company here in NY He would never forgive me if I didnt buy it.

I agree with asking for the signoffs by all contractors its a must

As a community banker for 48 years- I would never settle on real estate without Owners Title Insurance. Title policies not only pay claims ,they provide defence in title cases. The defense of a bogus or eroneous claim may be and usually is very expensive. Such claims can take months or years to settle. Why take a chance?

cost varies
 

i guess the cost must vary because i had to pay $800 from the company recommended by The Villages...and i have a patio villa. but being a former realtor the indian tribe scenario would not let me sleep at night without it...never even thought of the contractors!

I was supprised that the policy did not come with the mortgage closing costs. But as I was told it is optional. I like others looked at this property as being a land that has not been sold and bought several times but one would not know the history before The Villages purchasing it so I did purchase it for piece of mind. It cost $285.

$800 sounds like the price for title search and title policies. The bank required the search and mortgagee policy (Uunavoidable in today's market). The cost for the owners's policy to protect your interest was probably more like $250 or less.

Kelsie52, you got a good deal. We are also closing in October and were quoted $900 from the villages for title insurance. We were told by the title company that the state of Florida determines the rates that are asked. I might have to call them back.

Try this link for one or give Google a try on "Florida title insurance rates"

http://www.fullservicetitle.com/html...alculator.html

Lets not confuse apples and oranges here! There are different types of title insurance depending upon if you have a loan or not and who it covers.

If you have a loan you will be required to get title insurance for the lender up to the amount of the loan not the purchase price of the house. Separate cost.

IF you have a loan and also want personal title insurnace after buying tite insurance for the bank..Separate cost...this personal insurance is much cheaper...in essence you are only covering you Down payment and future appreciation costs, if any!

If you are paying cash....one cost for title insurance....cost similar as if you are buying it from the bank. in essence you are covering the purchase price of the house therefore more expensive.

You need to know what you are buying and what it covers!

Title insuarnce (for the lender and personal) is totaly different than a title search which will also be a line item cost on your closing statement.

title insurance - for a resale
 

I am changing the topic somewhat.

My question concerns the seller of a resale home.

As a seller, I think you have to provide title insurance for the purchaser.

If this is correct, is your fee providing insurance for the entire selling price of the home?

Does this charge include both the fee for a title search and the insurance policy?

You are saying that there are 2 separate title insurance policies if a lender is involved
1. for the lender in the amount of the loan and
2 for the purchaser for the price of the home


Does your fee also include the premium for the title insurance that may be required by a lender?


Please clarify for the state of Fl, what the seller is obligated to pay.

It would make sense to me that the seller would pay for the title search and the purchaser would have to pay for any insurance they would like to purchase whether it be for themselves or a lender.

Thanks

Have there been any successful cases in the state of Florida where Indians have reclaimed legal title to land?

Just wondering.

I am no lawyer, but I do know that all provisions of a sales contract (Im talking resale not a new buy from TV) is negotiable meaning Title Insurance may or may not be included as a sellers expense. What is customary practice may also vary between counties within the state of Florida..but again all is negotiable. I would find it rare that the seller is required to pay for the buyers Lenders and owners title insurance...but it could happen! Title search YES..title insurance no!!

Title insurance only covers the lenders loan exposure and the buyers equity. The only time title insurance covers the entire price of the house is if the buyer paid cash. The need for title insurance on a resale or a foreclosure property is MUCH MUCH different than buying a new home from TV.

Suggest you consult a lawyer or a closing agent before you go to the closing table......read up and ask the right questions so you have no surprises !