[Janette1]

total ripoff

[retiredguy123]

Originally Posted by 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.

I have always bought an owner's title insurance policy when I bought a pre-owned house. I never bought one when I sold a house.

When a mortgage company demands a title insurance policy, it is a lender's policy that does not protect the buyer. You would need to buy a separate owner's policy to do that.

[retiredguy123]

Originally Posted by 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.

It's not appropriate to fault the developer. The developer is not shifting the risk to the buyer. All title companies and others who do closings offer the buyer an owner's title insurance policy. It is a standard part of the closing process everywhere I have ever purchased a property. Offering the optional title insurance is definitely not unique to The Villages.

[mikemalloy]

[QUOTE=retiredguy123;1998847]

Originally Posted by mikemalloy

I agree, but who wants to sue someone? With title insurance, the insurance company does the suing.

I'll keep the $1000+ and risk the suit. And who's to say that the insurance company will balk and you'd have to sue them?

[damille]

The bank (if the property is financed) will require it to protect themselves. An owner's policy is usually a bit less but, in my opinion, is very important. We owned a property up North for 30 years and found out during a re-finance, years after the original purchase, that the boundaries were off by a few feet. The original title examiner had missed it. The title insurance took care of everything and the re-finance was not held up at all.

[Howone]

Title insurance covers what is not recorded. Title insurance is used in only 3 percent of all the real estate transactions nation wide. Buying in a sub division the risk is minimal.

[Juliebythesea]

Originally Posted by rrtjp

Thank you everyone. The bank is not requiring I get it but like some have said here for peace of mind I will be getting it. Like any insurance policy, you hope you never need it but if you do you are glad you got it.
10 days and counting till we close in TV. Excited and nervous.

the seller usually pays title insurance and picks the closing company

[dougawhite]

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.

Ditto on that! I always complained that it's a waste to spend for title insurance on the 8 homes we bought over the years. If you think the title insurance company will back you up in case of a dispute, think again. They will not do anything to help and you will be on your own to pay for an attorney and sue someone if there is ever a property problem. However, so that I can live a happy like with my wife, I bought it every time...

[Blueblaze]

Originally Posted by retiredguy123

I have always bought an owner's title insurance policy when I bought a pre-owned house. I never bought one when I sold a house.

When a mortgage company demands a title insurance policy, it is a lender's policy that does not protect the buyer. You would need to buy a separate owner's policy to do that.

I guess we live in different universes. This year I was required to buy title insurance when I sold a house in Texas. I used that money to buy three houses in Florida, and the seller paid the title insurance on each of them -- as it should be. Why would the buyer be required to guarantee that the seller has a marketable title?

But you can buy insurance for anything you want. The title company will certainly offer to sell a policy to the buyer. The question is, do you need it? I guess if I lived in a universe where sellers don't have to guarantee their title, I'd buy an owner's policy, too.

[DWatkins]

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 purchased a new build in Indiana several years ago. Our builder bought the lot from the previous owner who was developing the lots. It seems that the previous lot owner’s daughter used our lot to secure a loan that she defaulted on. The bank came after us now that a beautiful house was built on the lot. I contacted the title company and they took care of everything. I’ve never regretted paying for title insurance.

[retiredguy123]

Originally Posted by Blueblaze

I guess we live in different universes. This year I was required to buy title insurance when I sold a house in Texas. I used that money to buy three houses in Florida, and the seller paid the title insurance on each of them -- as it should be. Why would the buyer be required to guarantee that the seller has a marketable title?

But you can buy insurance for anything you want. The title company will certainly offer to sell a policy to the buyer. The question is, do you need it? I guess if I lived in a universe where sellers don't have to guarantee their title, I'd buy an owner's policy, too.

You may be confusing a title search and guarantee of clear title with a title insurance policy. Yes, the seller pays for a title search, but a title insurance policy guarantees a clear title for as long as you own the property. It would make no sense for a seller to buy a lifetime title insurance policy on a property that they do not own. Once they sell the property and get their money, why would they need a title insurance policy? Typically, sellers do not buy title insurance, but they do pay an attorney or a title company to do a title search. This is a one time process to make sure that a clear title is transferred to the buyer. It is not a title insurance policy.

[DebeeDoo]

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?

I just bought in Citrus Grove and I did not buy the owner’s title policy. (the bank requires one. The owner’s is optional.) The closing estimates had it listed for $1200, I said no, I don’t want it, then they came back and said it was only $268.00 and the estimates are “always high.” I told them I don’t care how inexpensive it gets, I do not need it. So if you feel that someone somewhere could come and lay claim to your tiny bit of this huge development, get the policy but hold out for a second offer. They’re just trying to get as much money as possible out of every sale.

[Koapaka]

Originally Posted by rrtjp

Thank you everyone. The bank is not requiring I get it but like some have said here for peace of mind I will be getting it. Like any insurance policy, you hope you never need it but if you do you are glad you got it.
10 days and counting till we close in TV. Excited and nervous.

Old joke....your life insurance salesman is your BEST friend....you are betting him you are going to die, and he is betting you dont.

[rrtjp]

Thats interesting. Thanks!

[tophcfa]

I would ask your closing attorney why you need title insurance when you are already paying them to do a title search to insure that the property you are purchasing is free and clear of any issues? If the attorney stands behind their work, why is title insurance necessary???