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Owner's Title Insurance when Buying a House
Posted on 6/7/17 at 3:29 pm
Posted on 6/7/17 at 3:29 pm
Purchasing a new home and I have the option to have owner's title insurance. Seeing whats the boards opinion on this. My lender says she's 50/50 on it as it protects you, but very rarely is it used. It's over $750 and wondering if it is necessary. The house I'm buying is 18 years old and I know the folks I'm purchasing it from personally. They have lived there for the past 8 years. Any help is appreciated.
Posted on 6/7/17 at 3:32 pm to bleedpurplengold
We elected not to purchase it when we bought our house. However, we were buying from an estate, where the parents had built the house in the 1960's. (The house came with all of the original closing documentation, plans, etc, which was pretty cool on its own).
If there is a chance of multiple owners, etc, I'd be more inclined to buy it than the situation we were in. You probably won't need it, but then again, that is what insurance is for.
If there is a chance of multiple owners, etc, I'd be more inclined to buy it than the situation we were in. You probably won't need it, but then again, that is what insurance is for.
This post was edited on 6/7/17 at 3:37 pm
Posted on 6/7/17 at 3:32 pm to bleedpurplengold
quote:
It's over $750
probably half that is straight cash for the title company.
Posted on 6/7/17 at 3:33 pm to bleedpurplengold
Like any other insurance - depends on your risk tolerance. I've seen it used but I'm in the business (title atty). I err on the side of purchasing it but I also make money when it is purchased so I could be considered biased.
House construction date, your personal knowledge of the owners and how long they have lived there may factor in a little, but issues could predate them or have come into existence after their acquiring of the property.
House construction date, your personal knowledge of the owners and how long they have lived there may factor in a little, but issues could predate them or have come into existence after their acquiring of the property.
Posted on 6/7/17 at 3:33 pm to Chad504boy
quote:
probably half that is straight cash for the title company.
80% goes straight to title company from what I'm told by another insurance agent....
Posted on 6/7/17 at 3:33 pm to Chad504boy
quote:
probably half that is straight cash for the title company.
It's more than that.
Posted on 6/7/17 at 3:33 pm to Chad504boy
yet you talk to someone who didnt get it and wish they had. costs them tens of thousands of bucks.
Posted on 6/7/17 at 3:33 pm to bleedpurplengold
Probably not a necessity but $750 is cheap compared to the fallout if there is any question of title on the house.
Considering the house will be a likely six figure purchase it is a small cost in the scheme of things.
Considering the house will be a likely six figure purchase it is a small cost in the scheme of things.
Posted on 6/7/17 at 3:35 pm to bleedpurplengold
I am a title//closing attorney
Get it...$750, probably will never need it but that is protection if necessary and legal representation a one time cost of $750...you are talking legal fees that without title insurance can climb to $20/30/40K
Get it...$750, probably will never need it but that is protection if necessary and legal representation a one time cost of $750...you are talking legal fees that without title insurance can climb to $20/30/40K
Posted on 6/7/17 at 3:36 pm to teke184
quote:
Probably not a necessity but $750 is cheap compared to the fallout if there is any question of title on the house.
Considering the house will be a likely six figure purchase it is a small cost in the scheme of things.
Yeah if its $750 and he is financing he is buying a house well over 100k.
Edit: I think his quoting the policy premium constitutes a subtle brag.
This post was edited on 6/7/17 at 3:38 pm
Posted on 6/7/17 at 3:38 pm to ThePoo
quote:
I am a title//closing attorney
Get it...$750
why can't you folks make modest commission off of these policies like the rest of us folk?
Posted on 6/7/17 at 3:38 pm to bleedpurplengold
I'm a title attorney. I always let the customers know when they ask about it that I get a cut of the premium.
It protects against things that just knowing the owners may not help. Like when they bought the house from the nice couple, the wife wasn't who she said she was. Real wife comes back ten years later and says hey that wasn't me and that's still my house.
It protects against things that just knowing the owners may not help. Like when they bought the house from the nice couple, the wife wasn't who she said she was. Real wife comes back ten years later and says hey that wasn't me and that's still my house.
Posted on 6/7/17 at 3:38 pm to bleedpurplengold
Title attorney here
I get title insurance it on every property I buy.
You got to enough conferences and hear the crazy stories that were not discoverable through searching the records and it scares you. Plus, you are also protecting yourself from errors on the part of the closing attorney in checking title.
I get title insurance it on every property I buy.
You got to enough conferences and hear the crazy stories that were not discoverable through searching the records and it scares you. Plus, you are also protecting yourself from errors on the part of the closing attorney in checking title.
Posted on 6/7/17 at 3:38 pm to rmc
I agree on buying it if you plan to live there for awhile. It's a one time cost that is minimal compared to the costs of if there is an issue.
Posted on 6/7/17 at 3:39 pm to bleedpurplengold
quote:
Like any other insurance - depends on your risk tolerance. I've seen it used but I'm in the business (title atty). I err on the side of purchasing it but I also make money when it is purchased so I could be considered biased. House construction date, your personal knowledge of the owners and how long they have lived there may factor in a little, but issues could predate them or have come into existence after their acquiring of the property.
I agree. I am also in the business as a title attorney (same bias may apply), but I always recommend it. I have discovered issues and the people filed claims. But for the insurance, it would have cost quite a bit to resolve the issues.
Posted on 6/7/17 at 3:40 pm to Chad504boy
quote:
why can't you folks make modest commission off of these policies like the rest of us folk?
Fwiw, commission can often be negotiated between title company and underwriter, If you become valuable to them in amount of closings you have more leverage obviously in these negotiations
This post was edited on 6/7/17 at 3:45 pm
Posted on 6/7/17 at 3:40 pm to bleedpurplengold
if your title attorney misses a lien or an ownership interest, you bought the house subject to those clouds. You can sue your attorney for only 3 years after the mistake (in Louisiana.)
i saw a title recently that had a lot number error in the property description in 1995 and 7 transactions took place after the error before anyone noticed.
an owner's title policy might be helpful in that situation.
i saw a title recently that had a lot number error in the property description in 1995 and 7 transactions took place after the error before anyone noticed.
an owner's title policy might be helpful in that situation.
Posted on 6/7/17 at 3:41 pm to LSU1018
I am a closing secretary and would recommend purchasing it, mostly if it is a home you plan to keep long term. Crazy things can happen and it is worth it if in fact an issue arises.
Posted on 6/7/17 at 3:41 pm to ThePoo
i have nothing to do with title/RE
but
it's like buying a $1500 tv and using a $5 surge protector. just insanity
a house is probably the biggest investment you'll make in your life. skipping on a sub-$750 insurance plan for it is just insane in MOST cases.
but
it's like buying a $1500 tv and using a $5 surge protector. just insanity
a house is probably the biggest investment you'll make in your life. skipping on a sub-$750 insurance plan for it is just insane in MOST cases.
Posted on 6/7/17 at 3:41 pm to Chad504boy
quote:
why can't you folks make modest commission off of these policies like the rest of us folk?
What's the commission for whatever you write?
You guys need to get a better lobby.
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