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Buyer's Title Insurance
Posted on 1/20/17 at 6:17 pm
Posted on 1/20/17 at 6:17 pm
My son is buying his first home.
The neighborhood is only 10 years old. The house is 8. It is being sold by the original buyer.
I suspect title should be pretty straightforward.
My inclination is to decline the buyers side of the title insurance. I have done this on many purchases. Maybe I've just been lucky.
Comments please.....
The neighborhood is only 10 years old. The house is 8. It is being sold by the original buyer.
I suspect title should be pretty straightforward.
My inclination is to decline the buyers side of the title insurance. I have done this on many purchases. Maybe I've just been lucky.
Comments please.....
6
Posted on 1/20/17 at 6:45 pm to ItzMe1972
So you would get regular title insurance and skip the shortages coverage? Get the original owners survey and a plat of the section and compare to deed, metes and bounds.
Posted on 1/20/17 at 7:30 pm to ItzMe1972
Its not just the fact that the older the house, the more title issues there are likely to be. It also protects against things like a scumbag seller that sells to another person the same day and that other buyer beats you to the courthouse to file.
Like any kind of insurance, it's just a gamble. If you can stomach the risk, go for it
Like any kind of insurance, it's just a gamble. If you can stomach the risk, go for it
Posted on 1/20/17 at 7:58 pm to Neauxla_Tiger
The closing attorney is excellent at real estate and will provide his title opinion.
The mortgage company is requiring that we pay for their title insurance.
The buyers insurance is optional.
The mortgage company is requiring that we pay for their title insurance.
The buyers insurance is optional.
Posted on 1/20/17 at 9:03 pm to ItzMe1972
my understanding is that the buyers coverage covers the amount of the down payment. so if you have an issue, the loan amount is covered but the buyers down payment amount is not. Read the title report. If the only loan for your original owner is their first loan then you should be fine. The first loan would have never been made if there were issues with the development. 
Posted on 1/20/17 at 9:08 pm to ItzMe1972
Lender's title is required.
Owner's title is optional, but get it. It's one of the cheapest possible insurances you can buy.
Owner's title is optional, but get it. It's one of the cheapest possible insurances you can buy.
Posted on 1/20/17 at 9:42 pm to SomethingLikeA
If you are going to stay in the house more than 5 years, kind of crazy not to buy it for how cheap it is. It's a one time payment that covers you as long as you live there.
Posted on 1/21/17 at 7:54 am to SomethingLikeA
quote:
Owner's title is optional, but get it. It's one of the cheapest possible insurances you can buy.
Agree. There are very few claims on title policies, but imagine if you have one.
Some nut shows up and files a suit and claims it is his grandpappy's old farm land that he should have inherited blah blah blah. Sounds crazy, but this really happens. I have seen it. Or the neighbor claims that the survey is wrong, or adverse prescription because he has mowed it, or whatever, and he owns the one foot strip on the west side, etc.
You can either go hire a lawyer for $200 to $400 an hour to defend it, or you could turn it over to the owner's title insurance that probably cost just a few hundred bucks for the one-time premium. The title insurance will provide you a lawyer to defend such claims.
I think it is crazy to turn it down, considering how cheap it usually is for residential property.
Posted on 1/21/17 at 8:09 am to Twenty 49
Posted on 1/21/17 at 9:20 am to Twenty 49
We just purchased a lot and title insurance was purchased for that transaction.
We are building a house on the lot and about to close on a construction loan. The title company told me that for the construction loan it's only $50 for "the binder" and we would need to buy the ~$850 lender title insurance for the end loan.
Does that make sense? What if someone makes a claim on the land while the house is under construction? If that happens, it looks like the bank's construction loan would be at risk.
We are building a house on the lot and about to close on a construction loan. The title company told me that for the construction loan it's only $50 for "the binder" and we would need to buy the ~$850 lender title insurance for the end loan.
Does that make sense? What if someone makes a claim on the land while the house is under construction? If that happens, it looks like the bank's construction loan would be at risk.
Posted on 1/21/17 at 10:35 am to ItzMe1972
I have a friend who bought a house in a small subdivison in BR about same age as one in OP. Turned out a couple years after he bought it that a descendant of the original property owner made a claim based on an alleged inproper succesion. All of the homeowners ended up puting up money (less than 1k each) to settle and not have thier titles tied up in court for years or risk being forced to move.
Stuff like this happens more than you think.
Grandma dies with out a will. Family sells the land to a developer. The black sheep of the family who was a hard to find Meth head pops up ten years later and hires an ambulance chasing attorney to try shake everyone down.
Stuff like this happens more than you think.
Grandma dies with out a will. Family sells the land to a developer. The black sheep of the family who was a hard to find Meth head pops up ten years later and hires an ambulance chasing attorney to try shake everyone down.
This post was edited on 1/21/17 at 10:36 am
Posted on 1/21/17 at 12:43 pm to ItzMe1972
The additional expense fow owners coverage in minimal when buying lenders title insurance.
I would never skip on the title policy.
Just my opinion.
I would never skip on the title policy.
Just my opinion.
Posted on 1/22/17 at 8:57 am to ItzMe1972
When financing a home, a lender/title company will quote you a simultaneous lenders and owners policy, so the lenders part is discounted. If you decline owner coverage, the lenders coverage reverts back to the standard rate. The savings between the two is usually a couple hundred bucks, depending on loan size. It is silly not to get it.
Posted on 1/23/17 at 11:41 am to Lsukj
If you already have to get a lender's policy, the owner's policy is only a couple hundred bucks more. It's a no brainer.
Posted on 1/23/17 at 11:57 am to ItzMe1972
you are required to have min lenders title insurance (based off loan amount), owners title insurance is optional (covers full purchase price), owners coverage is just a few hundred bucks more. if you get owners, on next purchase or refi, you get some discount at your next transaction.
Posted on 1/23/17 at 7:08 pm to Shaun176
quote:
an ambulance chasing attorney to try shake everyone down.
I was just about to have a snack and you made Gloria Allred's putrid face pop into my mind. Why, I oughta down vote you just for that!
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