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LSUguerilla
LSU Fan
Baton Rouge
Member since Oct 2003
524 posts
 Online 

Title Insurance



Can you legally opt-out of purchasing Title Insurance in Louisiana?






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19thHole
LSU Fan
Working on my TPS reports
Member since Dec 2007
4643 posts

re: Title Insurance


cash = yes

mortgage = depends on bank/mortgage co.






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schexyoung
LSU Fan
Deaf Valley
Member since May 2008
4187 posts
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re: Title Insurance


I'm sure there is a way, but can you find a lender who won't require it?





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rmc
LSU Fan
Zachary, LA
Member since Sep 2004
22559 posts

re: Title Insurance


quote:

cash = yes

mortgage = depends on bank/mortgage co.


Correct. And I'll expound a little further:

You can always opt out of owner's. Lender's it depends on the lender. Any large residential lender is going to require it. Some local banks may take a title opinion depending on the nature/maturity of the loan.

When you have to purchase lender's, owner's comes at a much lower rate. I'm just throwing some #s out, but if lender's is costing $800, owner's may only cost like 150.






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LSUguerilla
LSU Fan
Baton Rouge
Member since Oct 2003
524 posts
 Online 

re: Title Insurance


So do I ask my lender to only look at companies that don’t require title insurance?





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tiger94gop
LSU Fan
GEISMAR
Member since Nov 2004
1752 posts

re: Title Insurance


No conforming lender will not require title insurance. Also, most lender unless a finance co, will require title insurance because of risk. Lender's cover's them, so they all will require it. I know RMC is an attorney, but owner's title is always more expensive than lenders. He may mean that part of the premium is covered under lenders and part under owner's I am not sure. Most people to get owner's on a purchase because of the transfer of title. Most just get lender's on a refi bcause the original transfer is covered. Also, I am not sure, but if you go back through the same title co, there should be a reduction of cost for a refi because they already sold you a policy.

However, no reputable lender, will not require title insurance on a purchse. Too much risk.






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TheOcean
Florida State Fan
Member since Aug 2004
30544 posts

re: Title Insurance


Why would you want to do such a thing?





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LSUguerilla
LSU Fan
Baton Rouge
Member since Oct 2003
524 posts
 Online 

re: Title Insurance


I like to live life on the edge





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rmc
LSU Fan
Zachary, LA
Member since Sep 2004
22559 posts

re: Title Insurance


quote:

I know RMC is an attorney, but owner's title is always more expensive than lenders. He may mean that part of the premium is covered under lenders and part under owner's I am not sure.


Yeah, that's what I was getting at. I may have said something backwards.

quote:

Also, I am not sure, but if you go back through the same title co, there should be a reduction of cost for a refi because they already sold you a policy.


Correct, you get a reduced rate.






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TigerRob20
LSU Fan
Baton Rouge
Member since Nov 2008
1765 posts

re: Title Insurance


quote:

Why would you want to do such a thing?



We opted out of ours because we know that the original owners bought the property. Their sons are selling it, so the title is clean. Saved us $1600



This post was edited on 4/30 at 4:12 pm


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hawkeye007
LSU Fan
greenwell springs
Member since Feb 2010
1969 posts

re: Title Insurance


its a scam you are buying insurance on the work that you are paying a title company to do. never been a fan of it and i am mortgage guy.





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Jonas
LSU Fan
Northshore
Member since Nov 2010
387 posts

re: Title Insurance


quote:

We opted out of ours because we know that the original owners built the house. Their sons are selling it, so the title is clean. Saved us $1600


You are aware that the title insurance is for the land not the building, correct?






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NEWBIE
LSU Fan
Member since Jun 2008
126 posts

re: Title Insurance


quote:

Now the title company still requires it on their


A title company never requires a title policy. The lender requires a lender's policy to protect itself.

The title company may recommend the buyer get an owner's policy, but can't require you to purchase one. This recommendation can be based on if the title history was unusual and the attorney thinks there may be a risk. Sometimes, the title can be properly reviewed and their still may be a defect in title.

I would recommend talking to your title attorney to see why he recommends an owner's policy regarding your property.



This post was edited on 4/30 at 4:01 pm


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TigerRob20
LSU Fan
Baton Rouge
Member since Nov 2008
1765 posts

re: Title Insurance


quote:

You are aware that the title insurance is for the land not the building, correct?


Yes, that is what I meant. I was typing and talking on the phone at the same time.




This post was edited on 4/30 at 4:11 pm


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rmc
LSU Fan
Zachary, LA
Member since Sep 2004
22559 posts

re: Title Insurance


quote:

its a scam you are buying insurance on the work that you are paying a title company to do. never been a fan of it and i am mortgage guy.


It's an extension of prescription. If you think that's a scam then so be it.






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VABuckeye
Ohio State Fan
Oak Hill, VA
Member since Dec 2007
11361 posts

re: Title Insurance


I think it's prudent to get title insurance. It's not like it's a recurring monthly obligation and it provides peace of mind.

As an aside, no one personally knows the original owners of the land.






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Eon Blue
LSU Fan
River Ridge
Member since Feb 2007
383 posts

re: Title Insurance


quote:

We opted out of ours because we know that the original owners built the house. Their sons are selling it, so the title is clean. Saved us $1600

You are aware that title insurance is there to protect you from what you don't know about the property?
Bastard children popping up claiming they're heirs.
Invalid prior deeds due to duress, incompetence, fraud etc.
Unrecorded easements, contracts, taxes etc
Strange and unlikely as these may be you would spend much more than $1600 defending against a suit even if the claim was eventually ruled in your favor. Will you ever need to use your title policy? Probably not. You probably won't ever need your fire policy either.
And by the way attorneys can only see what is recorded. So even if you appear to have a clean title you may not.



This post was edited on 5/1 at 12:43 am


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Gorilla Ball
LSU Fan
Red Stick
Member since Feb 2006
2405 posts

re: Title Insurance


Great reply





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TigerDeacon
Wake Forest Fan
West Monroe, LA
Member since Sep 2003
24551 posts

re: Title Insurance


quote:


You are aware that title insurance is there to protect you from what you don't know about the property?
Bastard children popping up claiming they're heirs.
Invalid prior deeds due to duress, incompetence, fraud etc.
Unrecorded easements, contracts, taxes etc
Strange and unlikely as these may be you would spend much more than $1600 defending against a suit even if the claim was eventually ruled in your favor. Will you ever need to use your title policy? Probably not. You probably won't ever need your fire policy either.
And by the way attorneys can only see what is recorded. So even if you appear to have a clean title you may not.


This.

We are only on the hook for three years for things we should have seen. If a bastard child shows up and screws up your title, you don't have a claim against the attorney, even if it is within three years of closing as it is not something in the public record.

I am a title attorney and I buy owner's title insurance on everything I buy because I have seen a ton of things that can pop up to affect title that are not a part of the public record.







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TigerDeacon
Wake Forest Fan
West Monroe, LA
Member since Sep 2003
24551 posts

re: Title Insurance


quote:

We opted out of ours because we know that the original owners bought the property. Their sons are selling it, so the title is clean. Saved us $1600


This is like playing russian roulette with yourself. One of the most common ways title gets messed up is after/during a succession.






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