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Owner's Title Insurance
Posted on 6/12/13 at 4:29 pm
Posted on 6/12/13 at 4:29 pm
Purchasing a home and I have the option to purchase owner's title insurance. Is this a good purchase?
5
Posted on 6/12/13 at 4:30 pm to rpg005
quote:
Is this a good purchase?
its a huge rip off but they got you by the balls.
Posted on 6/12/13 at 4:32 pm to Chad504boy
so basically if I don't purchase the insurance and the title company doesn't do their job correctly, Im screwed?
Posted on 6/12/13 at 5:29 pm to rpg005
Owner's title insurance is meant to protect the owner in the event of an unforeseen error.
Yes, sure, maybe the attorney may make a mistake.
But there are also instances that the public records may not be accurate.
One example is if there was an invalid document due to a forgery in the past. Or maybe there was a prior succession that disbursed the property and all the heirs were not notified. Fraud, duress, and a handful of other things may come up that could cause problems.
I would recommend to talk to the title attorney and see what he thinks about the title history.
Also, if the title company doesn't do their job correctly, that is why they have insurance. They will be liable for any malpractice.
Yes, sure, maybe the attorney may make a mistake.
But there are also instances that the public records may not be accurate.
One example is if there was an invalid document due to a forgery in the past. Or maybe there was a prior succession that disbursed the property and all the heirs were not notified. Fraud, duress, and a handful of other things may come up that could cause problems.
I would recommend to talk to the title attorney and see what he thinks about the title history.
Also, if the title company doesn't do their job correctly, that is why they have insurance. They will be liable for any malpractice.
This post was edited on 6/12/13 at 5:30 pm
Posted on 6/12/13 at 7:56 pm to NEWBIE
I always purchase it for peace of mind and bc it's just a one time purchase. It's really not that expensive compared to how much you would have to pay if something happened
Posted on 6/12/13 at 8:57 pm to rpg005
Posted on 6/13/13 at 9:22 am to rpg005
if the house was brand new construction i would opt out of owners title insurance
Posted on 6/13/13 at 12:11 pm to rpg005
I bought a house that sits on top of a former cotton plantation. The ownership of this particular piece of land was in dispute for decades back in the 1800's but was cleard up in the late 1890's. I made damn sure I got the title insurance just in case there's some nutjob that comes along in the future claiming that he owns the property.
Posted on 6/13/13 at 12:31 pm to hawkeye007
Why do you recommend that?
Are you suggesting that new construction can eliminate past problems with title?
In fact, with new construction I would recommend an owner's policy because of the potential likelihood of labor or mechanic liens on the property. Under the public works doctrine, those liens would have preference and may cause future hassles for the owner.
Eta: In the end it all comes down to how you respond to risk. I'm heavily insured and find that the minimal cost of adding an owner's policy to a lenders policy (usually the lenders policy is reduced to 100 if you get both) is worth the peace of mind. No one can really know all of the potential problems with a piece of property and this up front cost will protect you.
Are you suggesting that new construction can eliminate past problems with title?
In fact, with new construction I would recommend an owner's policy because of the potential likelihood of labor or mechanic liens on the property. Under the public works doctrine, those liens would have preference and may cause future hassles for the owner.
Eta: In the end it all comes down to how you respond to risk. I'm heavily insured and find that the minimal cost of adding an owner's policy to a lenders policy (usually the lenders policy is reduced to 100 if you get both) is worth the peace of mind. No one can really know all of the potential problems with a piece of property and this up front cost will protect you.
This post was edited on 6/13/13 at 12:39 pm
Posted on 6/13/13 at 1:27 pm to NEWBIE
new construction alot of times indicates first home built on site, with that said if you already own the land your building on opt out of owners, if your buying from the builder that could be a little tricker
Posted on 6/13/13 at 3:04 pm to hawkeye007
quote:
new construction alot of times indicates first home built on site
Thanks for clearing that up.
Posted on 6/13/13 at 10:28 pm to rpg005
If you are already paying for a lenders title policy then I don't think it's really a question bc as NEWBIE said the extra cost is negligible. If you are paying cash and just buying owners policy then it's just a question of your risk tolerance. But as I've said in other threads its not to protect you from what is visible it's to protect you from latent defects in the title.
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