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Started By
Message
Owner's Title Insurance
Posted on 7/31/09 at 10:30 am
Posted on 7/31/09 at 10:30 am
Is this worth buying or is it just a rip off? This is for a new house I'm buying shortly. Thanks
5
Posted on 7/31/09 at 10:32 am to Vlad The Inhaler
It just came in handy for the last house I sold. Apparently thet title had never acutally been released by the original developer (and I was the third owner). Everything got handled behind the scenes.
Posted on 7/31/09 at 10:33 am to Vlad The Inhaler
I've always considered it the house-buying version of a car dealer selling you undercoating on a new car.
Mortgage lenders often require it as part of their loan agreement, however.
Mortgage lenders often require it as part of their loan agreement, however.
Posted on 7/31/09 at 10:34 am to Vlad The Inhaler
quote:
Is this worth buying or is it just a rip off? This is for a new house I'm buying shortly. Thanks
yes
yes
yes
The title company/attorney will make a commission on the insurance, but the protection it provides you could be invaluable.
Posted on 7/31/09 at 10:44 am to LSURussian
quote:
Mortgage lenders often require it as part of their loan agreement, however.
That is Lender's title insurance and that is required.
quote:
I've always considered it the house-buying version of a car dealer selling you undercoating on a new car.
Here's why you buy it. It protects you from:
1. Things that the title company cannot check (fraud, missing heirs, etc).
2. Problems that are not discovered until after three years and therefore the attorney is not liable.
3. The attorney/title company may be closed and/or without malpractice insurance and there is no one to seek recovery from for the title problems.
For a couple hundred dollars more than just a lender's policy will cost you it is probably some of the best insurance you will ever buy.
Posted on 7/31/09 at 10:48 am to TigerDeacon
i was told by a title lawyer that you don't have to buy lender's insurance in a refi if you've bought an owner's policy in your original purchase, not sure if true, but that is part of why I paid the three hundred or so extra bucks over the price of just lenders insurance.
Posted on 7/31/09 at 10:50 am to Cadercole
quote:
i was told by a title lawyer that you don't have to buy lender's insurance in a refi if you've bought an owner's policy in your original purchase, not sure if true, but that is part of why I paid the three hundred or so extra bucks over the price of just lenders insurance.
That is incorrect. You get a reissue rate (about 40% off) when you are refinancing after purchasing an owner's policy. It's cheaper, but still has to be bought. The lender's policy only covers a particular loan with a particular lender.
Posted on 7/31/09 at 11:18 am to Vlad The Inhaler
I was told that i was optional (in BR), which seems odd to me. Basically the lenders covers the cost of the loan and the owners ($400 more in my case) covers the cost of the purchase price.
The house I'm buying is new construction on new land that has never been developmed. Also, if there is a title issue with the land, it woudl involve about 60 people and probably turn into a class action case.
The house I'm buying is new construction on new land that has never been developmed. Also, if there is a title issue with the land, it woudl involve about 60 people and probably turn into a class action case.
Posted on 7/31/09 at 11:31 am to Vlad The Inhaler
quote:
I was told that i was optional (in BR), which seems odd to me. Basically the lenders covers the cost of the loan and the owners ($400 more in my case) covers the cost of the purchase price.
The only time that it is "optional" is an in-house loan where a bank may just want a title opinion from an attorney. Sometimes the banks require title insurance if the loan is over 100k. These loans are uncommon. The lenders policy covers the lender with no protection for the owner.
quote:
The house I'm buying is new construction on new land that has never been developmed. Also, if there is a title issue with the land, it woudl involve about 60 people and probably turn into a class action case.
All the more reason to buy title insurance. Get your money from the title insurer and walk away.
Posted on 7/31/09 at 11:31 am to Vlad The Inhaler
You probably can't get out of it - most title companies require it when closing...
Posted on 7/31/09 at 11:33 am to BrockLanders
quote:
You probably can't get out of it - most title companies require it when closing...
Because rulings have been issued that if we don't try our best to sell you owner's coverage it is malpractice. The last conference I went to we discussed a case of a client sueing an attorney because he did not try hard enough to sell her an owner's polciy. The client had declined owner's policy at closing. The attorney got her to sign extensive paper work of the risks. Didn't matter, she won.
Posted on 7/31/09 at 12:01 pm to TigerDeacon
I refinanced a few months ago - did I really need title insurance AGAIN, since I already owned the damn house?
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