[Villages Kahuna]

If you’re paying cash for your new house, you won’t have to buy a policy. If you’re purchasing using a mortgage loan your lender will probably require a title insurance policy. Whether you choose to buy the protection offered by the insurance if not required is up to you. In the highly unlikely event that you’d ever need it’s protection to pay fir the legal defense of your ownership it would be too late to purchase the policy .

The title insurance company used by the Closing Department is another business that is owned by the Developer, so the title insurance premium you’d pay becomes part of his profit. That doesn’t say that the title policy you’d buy is defective in any way—it’s probably just as good as one from any other title insurance company. Obviously the Developer, who owns the land that your house is built on, has title insurance protecting his ownership of the property.

[MidWestIA]

I did not new if a problem comes up I and a bunch of people will sue The Villages - I did used

[Goinghiway]

You're buying from the Builder......how many lawyers have work on this transaction.??? Your recourse would be to the builder....do you think they are going out of business any time soon????

[PJackpot]

Originally Posted by rrtjp

Buying brand new construction in Citrus Grove and was wondering if I really need to spend $1232.00 on title insurance?

That’s a ridiculous amount of money for title insurance. I would decline and shop for your own.

[sail33or]

I have a Lawyer friend who told me he started a Title Insurance Company because it was like taking free money. The premiums far exceed the rare cases of Title Defense. He said if you actually read the fine print (which no one does) just about every conceivable thing that could happen is excluded.

Then there is the ultimate lawyer weasel clause that specifically states that anything that the Title Company could not have known is excluded. It is actually very easy to do a Title search yourself going pretty far back. But yes, Indians, squatters, Spanish Explorers could come back and claim Title.

[retiredguy123]

Originally Posted by PJackpot

That’s a ridiculous amount of money for title insurance. I would decline and shop for your own.

The State of Florida determines the cost for title insurance. Shopping around will not change the cost.

[Boomer]

Originally Posted by PJackpot

That’s a ridiculous amount of money for title insurance. I would decline and shop for your own.

Not sure, but I am pretty sure the cost of a title insurance policy is based on the cost of the house, and it insures for the sell price only, does not include any increase in value.

If I am wrong, somebody here will tell me. I hope.

Boomer

[retiredguy123]

Originally Posted by sail33or

I have a Lawyer friend who told me he started a Title Insurance Company because it was like taking free money. The premiums far exceed the rare cases of Title Defense. He said if you actually read the fine print (which no one does) just about every conceivable thing that could happen is excluded.

Then there is the ultimate lawyer weasel clause that specifically states that anything that the Title Company could not have known is excluded. It is actually very easy to do a Title search yourself going pretty far back. But yes, Indians, squatters, Spanish Explorers could come back and claim Title.

I think that is true for just about any insurance you buy. But, over the years, you will probably spend more than 10 times as much on homeowners insurance as the one time title insurance cost. Although, I agree that the risk of a defective title on a new house is very low.

And, based on the amount of money spent on television advertising for auto insurance, I think that is probably a lot more profitable then title insurance.

[ellenwelsh]

Many, many years (more than 40) in the lending and closing business. I bought my house here for cash and didn’t buy title insurance. Felt it wasn’t really necessary since there has been nothing here for eons except cantaloupes and watermelons. I have not ever known of an instance where title insurance is needed. Prior ( and in this case, none ) transactions can be corrected. I used the money that would have gone to it to have the inside painted, etc.

[retiredguy123]

Originally Posted by ellenwelsh

Many, many years (more than 40) in the lending and closing business. I bought my house here for cash and didn’t buy title insurance. Felt it wasn’t really necessary since there has been nothing here for eons except cantaloupes and watermelons. I have not ever known of an instance where title insurance is needed. Prior ( and in this case, none ) transactions can be corrected. I used the money that would have gone to it to have the inside painted, etc.

Probably not needed for a new house. But, I once bought a pre-owned house where the title search revealed that a previous owner, years earlier, had sold the house, and the ex-wife of a the jointly owned house had been the only signer on the deed. The lawyer had to find the ex-husband, who was out-of-state, and get his signature before the house could be sold again.

[Haggar]

Originally Posted by rrtjp

Buying brand new construction in Citrus Grove and was wondering if I really need to spend $1232.00 on title insurance?

Bought title insurance for a house many years ago. Found out there was an IRS lien for $14,000 that was missed. Turned it over to title company and they took care of it right away.

[Blueblaze]

If it's a new house in The Villages, your risk in infinitesimal, and the reason it's so high is because it's just another Villages revenue source, through The Village's own title company. I wouldn't buy it if there's not a mortgage company demanding it. The SELLER is supposed guarantee their title, not you. If you were buying a used house in The Villages, THE SELLER would be the one buying the title insurance, and I don't understand why a developer gets away with shifting the risk to you.

Title insurance is like any other insurance, though. If it helps you sleep at night, go for it. Personally, I only insure against hazards that have a measurable risk that I can't afford to absorb. At my age, there aren't many of those left beyond homeowner's and automobile liability.

[BFISHER54]

Originally Posted by rrtjp

Buying brand new construction in Citrus Grove and was wondering if I really need to spend $1232.00 on title insurance?

We opted not to. If there’s a issue with title it going to affect hundreds of homes since the villages buys large parcels of land. So if there’s a problem the villages should have no choice but to step in and resolve the issue.

[KRMACK55]

Originally Posted by rrtjp

Buying brand new construction in Citrus Grove and was wondering if I really need to spend $1232.00 on title insurance?

You do not need title insurance if you are paying cash. I didn’t and no problems. It is one of the largest scams in the USA.
I sold my house last month and no issues as it was a cash buyer as well.

[KRMACK55]

Originally Posted by Boomer

When buying a house for cash, keep in mind that makes you the bank. Therefore, it is wise to do what a bank would do.

Title insurance only means that prior owner has no contractors liens and taxes / impact fees are paid. The title insurance provides no protection in title fraud or title dispute. Waste of money.