Homeowner Title Insurance
 

During our final design meeting TV had advised us that title insurance wasn't necessary as they affirm that there are no liens on the property or building. Now while filling out the closing documents there is a page where they recommend title insurance and you must sign off if you want to accept or decline the insurance. I would appreciate knowing what others who have gone before us have done. Thanks.

My wife and I recently (40 days ago) purchased a new home in the Villages in Fernandina and had a similar suggestion by The Villages staff when arranging the down payment and purchase contract. Of course when we received the preliminary closing package it had the same page you referred to in it. Being a banker myself, I consulted with a real estate attorney we use at my bank and he still urged me to spend the relativley small sum to obtain the title insurance. while a claim is not likley to be initiated by you due to a title defect, there are occasions when issues come up. If you are financing the purchase, it is almost certain your lender/bank will require it. My opinion.

Of course, a title company would recommend that you buy it. Many of us who bought new homes from the developer did not. For those who buy preowned, in my opinion it is necessary and the party who pays is a matter of negotiation.

I wonder if everyone who bought a new home in TV without getting a title policy and then sold it had any trouble providing clear title to their buyer?

I believe it is required by the bank if you have a mortgage.

Do you wear a seatbelt when u drive.

U get simultaneous coverage for $385, if you bought your home for less than that U don't need it.

just get it!

If you have a mortgage on a property the bank only requires you to secure the mortgage amount with title insurance...not the entire property....and BTW that only insures the bank against any potential loss. You would have to also buy an owners title insurance policy on top of what the bank requires.

For a new home bought from the developer, getting title insurance only provides you peace of mind....but in 99.99% it is not required or even needed. The deveoper would have hundreds of lawsuits on their hands if they did not provide you free and legal title to the property. You should however have the develloper give you a signed and notarized Release of all Liens from its subcontractors who worked on your house.

If you are buying a resale property, you are definitely open to more exposure and it would in most cases be worth the additional monies to pay for owners title insurance.

I have 2 questions for Hertigage Title Insurance company : 1) can you cite statistics showing how many claims have been made in The Villages where the Developer has not provided clean title to the original homeowner and the title insurance company paid a claim.???? And 2) how many title Insurance claims have been made / paid in for Village pre=owned (resale) properties since 1975 .

I agree with every word of this post.

One of the other reasons to get it is if, for some reason, deed is misfiled, releases are not properly applied etc. or other clerical errors occur, the HOTI protect you. We have had 9 homes and have always just done it, like Jimbo says!

Bob:

What is simultaneous coverage? The quoted price on the closing doc was over $1600.

Rich

Shop a bit more Rich, simultaneous means using the same company for all, that is what makes it cost less.

The Villages only guarantees clear title up to the day of closing. You can say there would be many law suits against the developer if there was a claim against your title, but you would lose. The title insurance will cover you if something comes up after your closing date. It's just like any other insurance, it will protect you in the event something happens. There is no way the developer would know if someone or something would jeopardize your title. Just like the rest of us, they have no crystal ball. It can be VERY expensive if you have to defend your title. The one time cost of insurance is a deal for peace of mind. And, just so you know, the Insurance Commissioner for the state of Florida sets the cost of title insurance, so it is not arbitrary.

The lender will require that you protect thier interest( the balance of the loan). You will be asked and required to sign off if you do not use owners covrage( protects your interest i.e.downpayment and equity buildup over ensuing years)
For a few hundred dollars more , your interest is protected for the duration or your ownership. I was in community banking for 40 years, financed thousands of homes and have seen many claims some of which were bogus and required owners to pay thousands to defend. Title insurance paid these costs.
Have owned 9 houses and bought owner's coverage on all. Please read previous threads TOTV:blahblahblah:

Well said.

I wouldn't dream ...
 

... of buying a piece of real estate without paying a one-time charge for title insurance, no matter on what--or whose--reassurance that it isn't necessary. The likelihood of anything happening is probably slim, but that doesn't mean that it's impossible. Why take a chance on the most expensive thing we'll likely ever own in our lives?!

This has always been my understanding of title insurance.

Title insurance does NOT protect you after you gain possession of your property. It only researches the title and checks the history of the property up to the time of your closing against liens and encumbrunces.

During the time you own it others can place liens on your property if you do not pay a contractor or fail to follow deed restrictions. It is then needful for the next buyer to research the property when you sell it.

We opted to trust the developer was transferring a clean property.

It is my understanding that title insurance does not insure the title once you own it. It just gurantees it is clear up until that date and insures that any thing that may appear that happened prior to closing is insured..

http://www.ehow.com/about_7464705_ti...ce-cover_.html

The real jip is on a refi
 

You have to have title insurance when you have a mortgage that protects the lenders interest.
What I hate is having to pay the same company all over again when you refi with a different lender. It is a little cheaper than the initial but not much. I mean other than checking for any leans recorded since the last time whats the deal.

I did have on a purchase once have the title company find out about an ex wife that had a claim against a house I was buying held in a corporate name. When buying it pays. As I said I think the charges in this internet age when the research is alot easier especially on a refi are too high.

Just my opinion

Your choice
 

It is a small risk not to get title insurance. I do not like risk and spent $1400 on title insurance. It is a "Sleep Factor" for me. Only you can determine your risk level.:22yikes:

It is not a case of trusting or mistrusting the Developer. I also trusted him otherwise I wouldn't have bought a house from him. It is unscrupulous people who may know I have no title insurance and file a nuisance claim. The peace of mind far outweighs the small premium.

By the way, I believe the Developer's own bank requires title insurance on their mortgages.

We never heard from Hertitage on my 2 questions...Surprise surprise?? Nationwide Title insurance has a very low payout rate compared to the premiums paid......and I bet it is ZERO (for new homes bought from the developer) here in The Villages going back 20 years or more. If you are buying New from the developer, you avoid the nuisance claims by requesting at closing a notarized statement signed by all contractors who worked on your home a "Release of Lien" document ..and the Villages will provide this for you. If you are buying a resale then mortgage insurance may be in order.