New Home Title Insurance
 

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?

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.

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.

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

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"

Insurance
 

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:

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.

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

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.

A Few Truisms About Title Insurance
 

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.

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.

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

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

:agree:

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.