[784caroline]

There has been a number of threads about title insurance and the pros and cons of securing such insurance. One pro (for New Construction) was to guard against and future Mechanics liens being placed on the property. However, at closing, I requested and received a notarized "Contractors Sworn Statements to Owner and FinalRelease of Lien. This document identifies in one spot 28 contractors who worked on my house specifically by trade...all have signed off so I think I have less of a problem with a mechanics lien against a newly constructed house.

This is a valuable document to have and eliminated (in my mind) one need for title insurance. The bigger need of course is peace of mind and each individual must determine that themselves.

[redwitch]

Nice as long as the developer is honest and actually lists each and every contractor and, more importantly, that the contractor has in fact paid off all sub-contractors. (This is true for a previously owned home that has had some renovations and/or repairs done to it.)

To not have title insurance today is asking for trouble. In new construction, there are just too many fingers in the pot for my comfort. In a previously owned home, there are too many secrets. So, I'd go for any and all insurance.

[SteveFromNY]

How much money does title insurance actually cost? I recall it being in the hundreds of dollar range. Am I wrong? When you are talking about protection against this kind of problem, and the risk is hundreds of thousands of dollars, it seems to be such a small price. Are we talking half of a percentage point? Seems like such a nit I wouldn't take the risk of not having it.

[784caroline]

If I recall, title insurance is based on the value of the property and an owners title policy for a $300K house cost approx. $1200-1500...one time at settlement.

[Boomer]

Originally Posted by SteveFromNY

How much money does title insurance actually cost? I recall it being in the hundreds of dollar range. Am I wrong? When you are talking about protection against this kind of problem, and the risk is hundreds of thousands of dollars, it seems to be such a small price. Are we talking half of a percentage point? Seems like such a nit I wouldn't take the risk of not having it.

Steve,

You are right. It is not hugely expensive, especially when compared to what could be lost. It is based upon what you pay for the house. I can't remember the formula.

There was a huge scandal a few years ago close to where I live. A major developer who had been around for quite awhile and was well-known had not been paying his subs.

People lost their homes. Cash buyers were the ones who were left completely alone, out in the cold, if they had not bought title insurance.

Mechanics liens were crawling out of the woodwork and the plumbing and the landscaping and the heating and the air conditioning and on it went. Headlines raged for a long time and I think the guy ended up in prison.

I do think there is a comfort level that people seem to have when they buy in TV because things have run along smoothly. And I am certainly not saying that is likely to change. That is not what I mean here at all. It is just that my own cost of sleep is having that policy, even if I was buying the property from a long lost twin.

So like everybody else in these threads, I have my reasons. The main one here is that I like getting sleep. But others have their reasons, too. And their cost of sleep is likely different than mine.

And, Steve, you are so right. The cost of sleep, in this case, is pretty minimal.

Boomer

[SteveFromNY]

BBB - One thing to remember, especially about TV - the gigantic tract of land being developed was purchased in little increments over time. A farm here, a house there, probably over years. Not to sound alarming, but one of those many lots could have a title problem, meaning that everything could theoretically go super smooth around you and your house is part of a dispute because the little tract of land you purchased from the developer had a claim on it from years ago. Again, not to sound paranoid, but it seems that 1/2 a percentage point on top of a large investment to preserve title is nothing. I just think of it as part of the price of a house. So instead of buying a $300,000 home, I'm buying a $301,500 home. If that $1500 were made part of the mortgage, it would equate to around $10/mo.
So I'd pay $10/mo to sleep better, for sure.

[Boomer]

Steve,

If we buy, we're buyin' the title policy, too.

Boomer

[Lil Dancer]

If you have a mortgage, wouldn't the bank's title insurance cover any problems that arose?

[redwitch]

The bank's policy covers them until the time it sells to another IF the bank even has a title policy on the property. Then, any problems would be the new owner's liability. So, if a contractor owes a sub money but the sub waits 11 months for payment and the house sells 10 months after construction, the new owner would be responsible for that mechanic's lien. The same is true if, after 15 years, you discover the land was really not free and clear. Without the title insurance, the odds are you would lose the home and not be compensated in any way.

[geobar]

We appreciate reading everyones comments on Title Insurance to guarantee you a free and clear title on you purchase. Extremely important and worthwhile the cost.
My other concern being from New York doesn't anyone purchasing a new home hire an Attorney for your protection on your expensive purchase.
Not being From Florida and not Knowing the FL State Laws I would consider in hiring an Attorney to represent us for our purchase.
Any comments, criticisms and concerns are welcomed.
We be back in TV 5/16 to 5/24 to look again.
If anyone can send updated (April) reduced pricing of new homes in TV it would be very appreciative.

[SteveFromNY]

I am also from NY, and was equally surprised at the recommendation to not use an atty.
We bought a new house, and I rationalized that everyone before me had signed the same contract (which wasn't negotiable) so I took the plunge. Everything worked out just fine.
Buying a resale, with the potential for more negotiations, would probably push me toward hiring one.

[geobar]

Thanks Steve from NY
No there are no negotiations with TV R.E..
Yes they have been doing this a long time, but things do happen/change. Protect yourself and your investment.

[Sidney Lanier]

Our experience in buying a resale proved absolutely smooth, with no attorney for buyer OR seller, just McLin & Burnsed, the law firm here in TV, handling the closing (VERY different from New York State). The plus on the closing of a resale is that the seller pays practically all the closing costs, including title search AND title insurance. Must say, though, that even if this weren't the case, I would not buy a house without title insurance; over the long haul, it's relatively inexpensive peace of mind!

[784caroline]

Sidney
Just curious, how much are closing costs today on a resale and can you provide some details. I can see the seller paying the bank required title insurance, but are sellers also paying the optional owners title insurance?? If that is the case why not get it.