Title insurance guarantees no lie s or encumbrances in your property when you take possession. Usually no issues but occasionally there is. They do thorough research for mechanic liens, unpaid taxes etc before underwriting the policy.

Not necessarily true, other people have owned that land in the past. Title insurance assures the buyer that if a previous owner, no matter how long ago, can prove that property still legally belongs to them, that the buyer will receive back the amount of money the title insurance policy is for.

You don’t need it. The developer is well established.

I just closed on a resale home in Monarch Grove. The cost of the owners title insurance was paid for by the seller at zero cost to me.

It started with native american indians making claims. There are some actions pending in different states.

True, but title insurance insures against the unlikely possibility that the lawyers slipped up and made a mistake.

Gee. I must be forgetful. Did not remember that all The Villages lawyers were looking out for my interests and protecting me from potential lawsuits.
Only in Fl are frivolous legal challenges not allowed.

So it seems you are right,,, waste of money to protect my investment.

In Illinois it was required that the seller paid for the owners title insurance policy. Got here and they’re like “buy it yourself”. Couldn’t believe that they have no responsibility to insure me for what they sold the property to me for.

Lender usually require a lender policy, it doesn’t just cover your house it also protects the lender on the land transfer and any survey issues, public utility issues etc. They want to protect themselves. More than likely a lender is going to require a policy.

New construction is different than resale. I have a real estate license in 3 states. In all 3 the buyer paid for title policy on new construction

IF Memory serves me,... I believe that My understanding was that the Seller normally pays for the Title Insurance, which I believe did when I sold my Villages house. However, I believe I remember being told that, a Florida New Construction, can reverse to the Buyer. I think got screwed on both sides of the deal!

I've always had a real estate lawyer with me at every closing, whether for a new home or used. More than eight so far. The cost was small and since no one really represents you at the closing when your make such a large purchase, it was worth it. In three cases my lawyer questioned some of the closing costs since he had the papers in advance and at closing I saved more than his cost. Some one knowledgable about the real estate laws of the state and county you're in would be able to explain everything about the closing rather than getting information from this kind of forum.

Closing Cost
 

Title insurance in not necessary but it is required if you finance your home. The lender requires it. The purpose is someone from the past could claim your property from an old bill of sale, wills, etc. If so you would need an attorney to represent you to protect your property. The title insurance is good as you own the property.

If an Indian tribe comes back and successfully convinces a court / jury that they own the land under your house, owner's title insurance is your economic parachute; otherwise you could lose everything. The mortgage company has their insurance for the same reason - it's called title defect.

I get it that some people opt out of the owners title insurance on a new house because they think the risk is very low. But, the lender always requires a lenders title insurance policy as part of the closing costs. If the risk is so low, why don't the lenders opt out of the policy and reduce the closing costs to be more competitive with other lenders?