[Terriy]

Looking at a list of estimated closing costs on a new patio villa in Hawkins. One of the fees is Owners Title (Optional). Can someone explain the need for this on a new never occupied home? Looking at $7,178 in total closing costs and that doesn't include prepaids and reserves. I'm not locked into this lender yet and am definitely shopping around. Thanks for your help!

[Stu from NYC]

Would think it is title insurance for the land and would cover you.

Financial institution will want title insurance but that will only cover the balance of the mortgage no protection to you.

[retiredguy123]

I always buy the owners title insurance, but some people think that it is not needed for a new house.

It will insure that you will have a clear title forever.

[charlieo1126@gmail.com]

Have 5 new homes here , there is no need . I know many people on there second and 3rd née home none took it

[RangerJoe]

We opted out of the Owner's title insurance. Of course the lender's policy ($2400) was not an option. My thought on the Owner's coverage was that it was not necessary considering the house was new construction. The Villages development company purchases vast amounts of agricultural land to build on. There is due diligence performed on title search of that land because any future claim to title of that land would not only effect the individual homes built, but also the rec centers, golf courses, trails/roads and any other amenities.

[JohnN]

You don't need title insurance on a new dwelling.

[Neils]

Originally Posted by JohnN

You don't need title insurance on a new dwelling.

Do you know who owned the land over the past maybe 100 years?
A claim from a distant heir can get expensive to defend

[Scott O]

Originally Posted by Neils

Do you know who owned the land over the past maybe 100 years?
A claim from a distant heir can get expensive to defend

And you don’t think that with the vast experience and lawyers of The Villages that was all previously taken care of...They didn’t become the largest retirement community in the country from careless real estate dealings...smdh

[DrBrutyle109]

You can shop around and probably get costs for a little less, but you have to realize that closing costs are a wat to basics steal money for the organizations that you pay. They’re a joke no matter who you go with

[Worldseries27]

Originally Posted by scott o

and you don’t think that with the vast experience and lawyers of the villages that was all previously taken care of...they didn’t become the largest retirement community in the country from careless real estate dealings...smdh

idk. Maybe someone will
make a claim to build a casino.
just saying

[Weavej2718]

In the absolute worst case scenerio, which is unlikely, you could be asked to leave your home. The lenders coverage would pay off your home loan. If you did not choose the owners title you would walk away with $0.00. Equity is gone. So....i agree it rarely ever happens, am i willing to lose my entire equity for $200-300 policy...? It is a one time fee, and covers from the day of closing backwards in time. As you make payments the lenders exposure goes down while your exposure goes up.

[banjobob]

Originally Posted by Neils

Do you know who owned the land over the past maybe 100 years?
A claim from a distant heir can get expensive to defend

A maybe one in a million chance since the land has been searched by the developer.

[EileenK]

Actually it is FL law that the owner of the property must give a free & clear title, however, TV passes this cost on to the consumer. One of the many deceptions we discovered about TV.

[retiredguy123]

Originally Posted by Weavej2718

In the absolute worst case scenerio, which is unlikely, you could be asked to leave your home. The lenders coverage would pay off your home loan. If you did not choose the owners title you would walk away with $0.00. Equity is gone. So....i agree it rarely ever happens, am i willing to lose my entire equity for $200-300 policy...? It is a one time fee, and covers from the day of closing backwards in time. As you make payments the lenders exposure goes down while your exposure goes up.

I think the policy cost is more like $1,000+. But, it is a one time fee, and over time, the cost is relatively low compared to your homeowners insurance, which you need to pay every year.

[Micki]

Originally Posted by retiredguy123

I always buy the owners title insurance, but some people think that it is not needed for a new house.

It will insure that you will have a clear title forever.

It does not insure that you have a clear title forever. What it does do is pay you the amount the title insurance policy is worth if someone comes around and proves the property is actually their’s and your seller had no rights to sell the property to you or anyone else.