Talk of The Villages Florida - Paying Buyer versus Lender Title Insurance

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Quote:

Originally Posted by jbrown132 (Post 1802900)

What I have never understood about any of this is that when buying a home you pay the attorney to do a title search. So when you go to sell the home if they find a problem with the title shouldn’t the attorney who did the original search be liable to make the title good. To me this is just a money making scheme.

Just adding to your comment of money making add-ons to buying a house, one of the worst is a mortgage company requiring a buyer to buy mortgage insurance to protect the lender against the buyer defaulting on the loan. This is added to the monthly payments for the life of the loan. How they get away with these things is criminal.

Quote:

Originally Posted by jimhurtt@twc.com (Post 1803241)

If you make a 20 percent down payment, you don't need to pay mortgage insurance. I think that should be the minimum standard requirement to buy a house. Buying mortgage insurance should not even be an option.

Quote:

Originally Posted by retiredguy123 (Post 1802917)

You are correct that the attorney who does the title search is liable, but you would need to hire another attorney to sue the title seach attorney. Good luck with that. If you have a title insurance policy, you just file a claim against the policy like you would with homeowners insurance. But, it is a money making scheme, like homeowners and auto insurance. A title insurance policy is only paid for once, and it covers you for life, unlike homeowners and auto insurance that you need to pay for year after year.

Typically, you cannot sue the person who did the title search. The law is that a title search is not performed for the home owner. Rather, it is performed for the title company so that they can decide what to insure. If there is an issue with your title, the remedy is to then file a claim under your title policy. Most states do not recognize a cause of action for a “negligent title search”. You can get around this by ordering an abstract of title - which can be more expensive than a standard title search.