[kitnhead]

Originally Posted by retiredguy123

I bought it, but, obviously, the risk is lower for a new house than for a resale. But, over many years, it is less expensive than homeowner's insurance. But, also, if there were no risk, why do lenders require it?

My guess is that the lenders have a hook-up going with the insurers. The rule for buying any insurance: weigh all of the risks. If you are going to pay more over time for the insurance product itself than it would cost you to replace the item, or in this case defend you claim, then the insurance is not worth it. If you are insuring a potentially catastrophic event that has a likelihood of occurring (car accident with injuries) then it is worth it. A good example is buying insurance at one of those electric stores. You buy an item for $150 and they sell you insurance for $4 per month. Odds are you’ll pay more in insurance than you paid for the product in the end.

[westernrider75]

We did not buy it and bank did not require it on our new home.

[Mrfriendly]

Originally Posted by retiredguy123

I once bought a house and the title search revealed that, two owners ago, a divorced woman had sold the house. Her ex-husband's name was on the deed, but he didn't sign off on the sale.

If the divorce was finalized in the court, the divorce decree will stipulate who gets title of the home and property. That is enough to satisfy title company ensuring the chain of title and no need to spend the money to make a new deed and have recorded.

[Wondering]

Originally Posted by djlnc

We're purchasing a house in the Village of Richmond. Seems to me there is virtually no risk of some sort of previous claim against the property. Don't want to waste $1500.

$1500 seems high. Better safe than sorry. Don't know if someone, before The Villages bought the land, may have a claim to it.

[Love2Swim]

Originally Posted by Mrfriendly

If the divorce was finalized in the court, the divorce decree will stipulate who gets title of the home and property. That is enough to satisfy title company ensuring the chain of title and no need to spend the money to make a new deed and have recorded.

We bought two houses in The Villages and didn't get the insurance on either one. I'd say your risk is very low.

[RiderOnTheStorm]

Originally Posted by djlnc

We're purchasing a house in the Village of Richmond. Seems to me there is virtually no risk of some sort of previous claim against the property. Don't want to waste $1500.

The bank charges you for a title search and then charges you again for title insurance in the event their own search was defective. They should not have it both ways; either charge for the search or the insurance, not both. Nice business if you can get it.

[golfing eagles]

Originally Posted by Wondering

$1500 seems high. Better safe than sorry. Don't know if someone, before The Villages bought the land, may have a claim to it.

To paraphrase a line from the movie "Contact": We can think of dozens of reasons to buy title insurance, it's the reasons we haven't thought of that makes it a good idea

[RustyN]

When you close on a new home you are provided a guarantee that the title is free and clear. But that is from tv. If you think they may go out of business then you may want to get it. Lol. Different story on a preowned home. Bottom line is do what makes you feel comfortable.

[retiredguy123]

Originally Posted by Mrfriendly

If the divorce was finalized in the court, the divorce decree will stipulate who gets title of the home and property. That is enough to satisfy title company ensuring the chain of title and no need to spend the money to make a new deed and have recorded.

That could have happened, but the title search attorney tracked down the ex-husband in another state and he was willing to sign off on the sale. The divorced woman was not the current seller and could not be located. I'm not sure all title companies would accept an unrecorded deed, especially if the divorce decree was from another state.

When my mother passed away, her will gave me her house as the only heir. I had to go through probate to get permission from a court to sell the house. I could use the will and death certificate to change the name on her vehicle title, but not on the house. Bummer.

[retiredguy123]

Originally Posted by RustyN

When you close on a new home you are provided a guarantee that the title is free and clear. But that is from tv. If you think they may go out of business then you may want to get it. Lol. Different story on a preowned home. Bottom line is do what makes you feel comfortable.

I agree, but, if The Villages sells you a defective title, do you really want to hire a lawyer and sue them?

[jparsoneau@aol.com]

So what I have not seen on here is this question is about new construction which is built by The Villages, sold by The Villages. And titled through The Villages escrow department. They offer you title insurance through The Villages. Yes these are all different sister companies all owned by the villages.
The only real legit question is what if on this property 5 million years ago idians owned it and have a legal right to it now. And if that’s the case I would come back and sue The Villages. But having The Villages sell you a house and sell your title insurance is basically paying the same person for the same thing that you’ve already bought.
Plus I do believe the village is doing this for 30 years plus hast to know what they’re doing at least a little bit by now.
And no I did not buy it on my new house no need. On a used house I would definitely buy it

[retiredguy123]

Originally Posted by jparsoneau@aol.com

So what I have not seen on here is this question is about new construction which is built by The Villages, sold by The Villages. And titled through The Villages escrow department. They offer you title insurance through The Villages. Yes these are all different sister companies all owned by the villages.
The only real legit question is what if on this property 5 million years ago idians owned it and have a legal right to it now. And if that’s the case I would come back and sue The Villages. But having The Villages sell you a house and sell your title insurance is basically paying the same person for the same thing that you’ve already bought.
Plus I do believe the village is doing this for 30 years plus hast to know what they’re doing at least a little bit by now.
And no I did not buy it on my new house no need. On a used house I would definitely buy it

The cost, value, and reasons for buying title insurance are pretty much the same everywhere. The Villages is not unique in that respect. But, one of the reasons for having title insurance is that you don't need to sue anyone in the event of a defective title. The insurance company is supposed to handle it.

Also, human beings have only been around for about 150,000 years.

[Fltpkr]

We can speculate about the likelihood of a future insurance claim or the scope of the coverage. I understand the reasoning for not spending money needlessly, but the homes here are huge investments and commonly cost $400,000 - $ 700,000. The one-time cost of the title insurance for an investment that large, even if the risk is very small, is an easy decision for me.

[kkingston57]

Originally Posted by djlnc

We're purchasing a house in the Village of Richmond. Seems to me there is virtually no risk of some sort of previous claim against the property. Don't want to waste $1500.

Great ? Looks like another way for title companies to make money. Only way there might be a problem is if the estate of someone like Christopher Columbus claimed they have ownership rights to the property.

[golfing eagles]

Originally Posted by jparsoneau@aol.com

So what I have not seen on here is this question is about new construction which is built by The Villages, sold by The Villages. And titled through The Villages escrow department. They offer you title insurance through The Villages. Yes these are all different sister companies all owned by the villages.
The only real legit question is what if on this property 5 million years ago idians owned it and have a legal right to it now. And if that’s the case I would come back and sue The Villages. But having The Villages sell you a house and sell your title insurance is basically paying the same person for the same thing that you’ve already bought.
Plus I do believe the village is doing this for 30 years plus hast to know what they’re doing at least a little bit by now.
And no I did not buy it on my new house no need. On a used house I would definitely buy it

You might be technically correct. However, what do you think is easier (and less stressful):

Buying a one-time title insurance for $500-1000 OR suing The Villages?????