[VillageIdiots]

Originally Posted by retiredguy123

Are you saying that the title insurance to protect the bank's interest in the property is optional, or just the owner's title policy? It is my understanding that the bank always requires a bank title policy, but that the owner's policy is optional. An owner's policy will only protect your interest in the property, so the bank doesn't care whether you buy it or not.

Correct. I went back and checked my estimated closing costs statement and there is a lender's title policy that is not optional and a borrower's policy that is optional. I guess that explains why they make it optional for the buyer - because they are covered for their interest in the property either way.

[Challenger]

Originally Posted by Carla B

When the first owner of a Villages house resells it the buyer would insist on a title policy. So how many titles have "failed" because of problems with the title passed by the developer to the first owner, then by the first owner to the second. Probably none so far.

Quite often , title claims , pop up after 50-100 years or more. Ask people in Connecticut about Indian tribe claims on land which now houses Indian casinos . others where there were transfers with erroneous metes and bounds descriptions. Some where the Federal government claimed previous domain, etc.etc.etc. Even if you are finally supported by court action to be the rightful owner, your defense could cost $thousabds . If you were insured, the title company would defend or pay for your defense.

[manaboutown]

I try not to be pennywise and pound foolish so I purchase owner's title insurance which assures coverage for marketable title. My primary concerns in purchasing a home within a large development include the developer obtaining marketable title from the landowner, release of construction and other prior loans and mechanics liens.

My only experience with title company issues is one I used for years on commercial properties went out of business which forced me to purchase reissue lender title insurance from another company. Fortunately the state stepped in and required them to offer a low rate.

I had an encroachment problem once but resolved it without the title insurance company needing to get involved.

[biker1]

In the case of new homes in The Villages built on large chunks of land bought by the Developer, if there was a title defect in the land bought by the Developer it could impact literally hundreds and possibly thousands of homes. In that case, all bets are off and things could be tied up in court for who knows how long with class action lawsuits. It would be ugly. For resales, I can see the need for title insurance. For friends who bought new, I don't recall any of them actually opting for the title insurance.

Originally Posted by Challenger

Quite often , title claims , pop up after 50-100 years or more. Ask people in Connecticut about Indian tribe claims on land which now houses Indian casinos . others where there were transfers with erroneous metes and bounds descriptions. Some where the Federal government claimed previous domain, etc.etc.etc. Even if you are finally supported by court action to be the rightful owner, your defense could cost $thousabds . If you were insured, the title company would defend or pay for your defense.

[manaboutown]

Originally Posted by retiredguy123

All true, but the Native Americans still think it is their land. If they ever win in court, they will take your house. Stranger things have happened.

With a Mountain at Stake, Tiny Tribe and New Mexico Neighbors Do Battle - The New York Times

[Henryk]

Originally Posted by tom_sjc

Does anyone know from whom the builder purchased the Fenney land?

Would the builder ensure the title was clean?

Why would I buy title insurance? Piece of mind, there has to be a better reason.

NOTE: There is no lender so buying it is optional.

I am not certain, but I was told the seller pays for title insurance in Florida That was the case in my purchase. In any event I would be certain to get it. (I worked for a real estate attorney.)

Another way to look at it is if a lender won’t loan without it, I wouldn’t buy without it.

[suebanj]

If you got both policies, the title premium would be calculated on your sales price with the lenders policy costing just an additional $25.00 plus endorsements as they are being simultaneously issued. To compare the price, you would need to find out the difference between the cost of the owners policy and the cost of just the lenders policy as the loan policy would be less.

[CT514s]

Originally Posted by Henryk

I am not certain, but I was told the seller pays for title insurance in Florida That was the case in my purchase. In any event I would be certain to get it. (I worked for a real estate attorney.)

Another way to look at it is if a lender won’t loan without it, I wouldn’t buy without it.

I've sold properties in other parts of Florida, and the seller either provided you with a copy of their title policy OR gave you a closing credit of $300. This was to cover the cost of a full title search rather than just a run-down of title. Here in TV, the developer does NOT pay for the buyer's title insurance. But if you're the Seller of a resale property you are required to pay for the Buyer's title insurance policy. And that's not negotiable. Not quite fair in my opinion, but it seems to be the cost of doing business here. Incidentally, the company (law firm, closing title company, etc.) retains a percentage of the title insurance fee as their commission. Maybe that explains it all.

[JOERILLA]

It was almost $1500 i believe when I bought in Fenney in Dec. I opted out of buying it...not to worried about any future problems

[Henryk]

Originally Posted by CT514s

I've sold properties in other parts of Florida, and the seller either provided you with a copy of their title policy OR gave you a closing credit of $300. This was to cover the cost of a full title search rather than just a run-down of title. Here in TV, the developer does NOT pay for the buyer's title insurance. But if you're the Seller of a resale property you are required to pay for the Buyer's title insurance policy. And that's not negotiable. Not quite fair in my opinion, but it seems to be the cost of doing business here. Incidentally, the company (law firm, closing title company, etc.) retains a percentage of the title insurance fee as their commission. Maybe that explains it all.

In Massachusetts, the title agent (attorney) got 70% of the title insurance premium.