[wyatt1963]

The answer on a new construction purchase when financing is to ask the title company for a simultaneously Issue title policy
Problem solved

[retiredguy123]

Originally Posted by wyatt1963

The answer on a new construction purchase when financing is to ask the title company for a simultaneously Issue title policy
Problem solved

Huh? How does that solve the problem? Are you saying they will give you an owners title policy for free?

[Fisherman]

As a former banker for 37 years and mortgage lender, I would NEVER invest money in a home without buying a owners title insurance policy. Even if you are paying cash, you become the bank! If the bank or lender requires it to protect their investment, why wouldn’t you? I built one home here and I bought a resale. The Villages lawyers fought me on using my own real estate attorney in Gainesville to the point that they wanted to withhold the keys till the next business day after the money was wired in to their account. My attorney won that battle. On both purchases, I did due diligence, just like a bank does....survey, owners title insurance policy, appraisal, termite inspection and home inspection. If or when you decide to sell this property, you will have to provide one to the buyer. You will get a reduced price if you had the title search done when you purchased the property. I recently sold the house I built (new construction) and I was asked to provide, if I had them, a title policy, a survey, and a termite contract on a cash sale. They used these to get simple updates to them as new owners and we closed in 10 days. I gave copies to their realtor and the only pending issues were a home inspection and appraisal. Never say never to title issues. I have seen them in my career. And, more than you want to know about, with people not getting a proper survey. Seems like a small expense for peace of mind when you think about the purchase price of a home. Hope this helps future buyers and sellers, but in the end, it is each person’s choice. Last, but, not least, do you really want The Villages to represent you as both a buyer and a seller even if it is new construction?

[Bill14564]

Originally Posted by retiredguy123

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?

Disclaimer: Not a real estate or banking lawyer.

My guess is the lender does not have a choice and is required by law to demand the insurance. Remember, the bank isn't playing with its own money, it is using its depositors' money to make these loans. Banking regulations looking out for depositors might limit the amount of risk a bank is allowed to take.

[Rlheinz19@yahoo.com]

All insurance is in it's simplest form is a wager. Insurance company is betting it won't happen and taking your bet that it will.

[retiredguy123]

Originally Posted by 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

When you buy a new house in The Villages, I don't think you can shop around for a cheaper owners title insurance policy. The policy is issued by the developer's title company in conjunction with the title search done by the developer. I doubt that another company will sell you a title policy for a lower price.

[Krismaroney]

Hi Terry, Lender's title insurance protects the lender as security for making mortgage money available to a buyer. It does not protect the buyer. Owner's title insurance protects the buyer, lasts as long as you, the policyholder - or your heirs - has an interest in the insured property.

Originally Posted by 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!

[Bigmike18]

I am a retired title company owner,
Lets use car insurance as a comparison, there are two parts to car insurance. Liability coverage is for the other guy, if you have an accident, your liability insurance covers their damage and injuries, the other part is comprehensive, which covers you and your injuries.
Title insurance is similar, the lenders policy covers the lender if there is a title claim, the owners policy covers you and your home if a claim arises.
Over the 35 years in the title business, many claims came along that were unknown at the time of the original sale. So my advice is it is money well spent.
It is a one time premium, the owners policy provides coverage for all the years you own your home, with no additional premium.

[J1ceasar]

protects against builders liens as well as mortgage costs YOU have paid and lawyers fee's in future.

Originally Posted by 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.

[rrb48310]

Originally Posted by 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.

That is how it is in Michigan, the seller supplies a clear title via title insurance. There use to be (back in the day I sold real estate) a credit to the seller if the previous title insurance policy was turned in.

[LuvtheVillages]

Originally Posted by 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!

Over $7,000! Wow!

There are places that will give a mortgage with no closing costs. You only have the prepaids and reserves to cover. Rate may not be the lowest, you have to compare that with the savings on closing costs and consider how long you will be in the house. (Average Villager moves 3 times.)

One place with no closing costs is Vystar Credit Union on 466A.

[spjvette]

At one time a title search was all that was needed. Title insurance is a lawyer’s scam

[Stu from NYC]

When the Village Indian tribe (or whatever tribe way back when) that used to control the land before they were forced out takes the Villages to court so as to build a casino sure would like to have some protection.

That is why we purchased our own title insurance policy.

[KRM0614]

Originally Posted by 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!

You don’t need title insurance if you are the first owner unless you are mortgaging it then your lender forces it on you ! Don’t use the Morse family bank called citizens.
Use a credit Union of even another bank outside Florida but commercial banks charge more for nothing. Don’t trust the sales people either they don’t just sell the houses they sell the villages bank title insurance and homeowners insurance. They quoted me 1200- for HO ins on a cash sale, I went to progressive insurance and my policy is $460-/yr. I also bundled my car insurance quotes MF me 600- for six months then they sent me a refund check

[KRM0614]

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.

That’s not true at all whoever told you that is selling you more business.