[twoplanekid]

Originally Posted by Dr Winston O Boogie jr

There are two different Title Insurances. One covers the bank and one covers the homeowner. The bank insurance is mandatory. Homeowner's is optional. I'll be closing on July 22 and I'm thinking of rejecting it.

I just looked at my paperwork. The cost for lender's title insurance is $25.00. The cost for homeowner's title insurance is $1,005. Huh? Same coverage.

You are correct about the two Insurances. As my lawyer friend says, you always want to avoid paying lawyer fees for litigation. I don’t believe the Developer would be of any help and certainly don’t want to sue them( The Developer) as they have more money to spend on lawyers than I . So, I added the personal one which was around $327.

[Challenger]

Spent 40 years in Community Banking- Primary business was financing homes.

My advice is buy owners title insurance . Yes, the incidence of title problems is relatively infrequent, but when a problem arrises, it can be incredibly expensive. Most claim costs are for attorneys fees to protect your ownership position.

Take advice from a real estate attorney, not neighbors and friends , who have no real knowledge of the subject. Free legal advice is usually worth what is paid for it.

Full disclosure= I am not an attorney.

[mgcsooner]

Generally, lending institutions require it if you are financing the purchase, but if not it's up to you. Past experience I have had is the lender's policy is very priced low for THEIR COVERAGE, figuring you are going to buy it too. If you decline, the lender still requires it and the closing amount you are required to pay is drastically increased and it is still only covering them.

Also in some states (TX) the price of the policy is dictated by the state.

[JCMSr]

I personally would not purchase any real estate without obtaining Title Insurance. Over the years I have experienced on two separate occasions a problem with property titles which resulted in a claim against said policies. The first one had to do with back taxes owed on the undeveloped lot by the developer who was no longer in business. Rather than create an insurance claim the closing attorney paid the back taxes himself to clear the matter up. The second time was much more involved and had to do with a condominium we owned in Georgia. In this case, the original condominium documents were so screwed up by the original owner's attorney they had to be completely rewritten and refiled. This took over a year for the title insurance attorneys to straighten out and provide us with a clear title without exceptions. I have never seen a situation where Owner's Title Insurance was mandatory. Banks, on the other hand will always require title insurance for the amount of the loan to protect their interest. As someone has already stated, most insurance is a waste of money until you need it!

[Dr Winston O Boogie jr]

Originally Posted by twoplanekid

You are correct about the two Insurances. As my lawyer friend says, you always want to avoid paying lawyer fees for litigation. I don’t believe the Developer would be of any help and certainly don’t want to sue them. So, I added the personal one which was around $225.

If they sold me a house that they don't own the title to, I certainly would want to sue them.

[Challenger]

Originally Posted by Dr Winston O Boogie jr

If they sold me a house that they don't own the title to, I certainly would want to sue them.

and well you should. But there are many title defects that go undiscovered for many many years . I have enoiuntered illegal conveyences dating back more than 50 years. Sometimes by people not even in the chaim of ownership.

[CT514s]

Recently we tried to sell our house on our own. Contacted 3 different closing agents, including McLin and ALL three would not close without title insurance. In my former life I worked as a Real Estate Paralegal and while I certainly understand the benefits to title insurance, I have never heard of a closing agent requiring it. It just seems unjust that they will close new construction without it, but mandate it for a resale. Seems to be only in this area.

[dsnrbec]

Yes, that is what I am finding out as well. I was a Realtor in VA and never experienced this kind of requirement. I can't help but think they all agreed to take the same stand which probably violates some kind of anti-trust law.

[biker1]

Bought a new house last year and did not buy the title insurance either.

Originally Posted by village dreamer

I closed last sept. and did not buy title insurance,new house.

[Chatbrat]

If you don't have a mortgage-you should not need title insurance- title insurance protects the lender from liens

[dsnrbec]

It's true you don't have to buy it when purchasing a new house but if you are selling a previously owned home, you WILL be required to purchase it for the buyer. Still looking for someone to do a closing without it, but coming up empty.

[Boomer]

AAAAAUGH!!! It makes me crazy when I hear people say that cash buyers do not need title insurance.....

There are two kinds of title insurance. Lender's title insurance covers the bank for the amount of the mortgage. Of course, a bank requires it of the borrower. But as the mortgage amortizes, the bank's interest becomes less and less.

BUT.....Owner's title insurance covers the buyer for the entire amount paid for the house and stays with the buyer throughout ownership of the insured property.

The reason it makes me crazy when people say cash buyers do not need title insurance is because.....Hellooooooo, when you are buying a house for cash YOU are the bank. I would be protecting my investment in the house, just like a bank would do.

So anyway, if you do not want to buy owners title insurance because you are a cash buyer who is willing to assume total risk for your investment in your house, that is your prerogative. But please, please, please stop telling people that cash buyers do not need title insurance.

Give a Google to Owners Title Insurance and do a little reading. The cost of sleep varies.

(Full disclosure: I am speaking of title insurance in general, nothing specifically about Florida or TV. I know that who pays what where can be different from state to state. And I am not a lawyer. My rant is about advice that might not be so good. Something as simple as a typo in an old deed or an old mortgage that was not released, like happens sometimes with family mortgages, could have the power to bring down the house if it shows up years later and people cannot be found to sign affidavits and quit claims and such. Oh My!)

[Vladimir]

I would never go without title insurance regardless of whether it was all cash or financed. I as a buyer always paid for title insurance and if I was selling my house here in Florida I would stipulate that the buyer pays one way or another - why should I pay for his coverage?

[graciegirl]

Originally Posted by Boomer

AAAAAUGH!!! It makes me crazy when I hear people say that cash buyers do not need title insurance.....


There are two kinds of title insurance. Lender's title insurance covers the bank for the amount of the mortgage. Of course, a bank requires it of the borrower. But as the mortgage amortizes, the banks interest becomes less and less.

BUT.....Owner's title insurance covers the buyer for the entire amount paid for the house and stays with the buyer throughout ownership of the insured property.

The reason it makes me crazy when people say cash buyers do not need title insurance is because.....Hellooooooo, when you are buying a house for cash YOU are the bank. I would be protecting my investment in the house, just like a bank would do.

So anyway, if you do not want to buy owners title insurance because you are a cash buyer who is willing to assume total risk for your investment in your house, that is your prerogative. But please, please, please stop telling people that cash buyers do not need title insurance.

Give a Google to Owners Title Insurance and do a little reading. The cost of sleep varies.

(Full disclosure: I am speaking of title insurance in general, nothing specifically about Florida or TV. I know that who pays what where can be different from state to state. And I am not a lawyer. My rant is about advice that might not be so good. Something as simple as a typo in an old deed or an old mortgage that was not released, like happens sometimes with fairly mortgages, could have the power to bring down the house if it shows up years later and people cannot be found to sign affidavits and quit claims, and such. Oh My!)

We have purchased two NEW homes in The Villages for cash. We have chosen to not buy title insurance.


With all the folks buying here and all the sturm und drang about every little thing, we have yet to hear anyone got burnt on a new home that the developer owned the land previously.


I am not advising anyone to pass on it. We have ALWAYS purchased title insurance on all homes in the past.


I figure the developer was crossing his t's and dotting his I's.

[biker1]

That perfectly sums up our thinking.

Originally Posted by graciegirl

We have purchased two NEW homes in The Villages for cash. We have chosen to not buy title insurance.


With all the folks buying here and all the sturm und drang about every little thing, we have yet to hear anyone got burnt on a new home that the developer owned the land previously.


I am not advising anyone to pass on it. We have ALWAYS purchased title insurance on all homes in the past.


I figure the developer was crossing his t's and dotting his I's.