First time home buyer, Best title insurance company

[Blue Collar Guy]

Sweepssue offers good advice, regardless of whether a lender requires title ins. or not. I wouldn't buy RE without an owners title ins. policy.

Yes, I agree ,I passed that on to them already.

 

[MissMolly]

No, never. I have never seen a loan closed without title insurance. As I stated earlier I know of no legitimate lender that would allow that. Title insurance is a good thing to have. It can protect both the homeowner and the lender if things are overlooked in the closing process. It's not that expensive and provides a lot of peace of mind. It's a one-time charge at loan closing. No ongoing fees.

 

[FlaGator]

Although the lenders turned to title insurance companies in an attempt to try to recoup their losses due to borrower defaults, I still stand by my statement that title insurance does not protect the lender against borrower default. The claims brought against the title insurance companies were related to defective deeds and improper underwriting/closing. Yes, the defaults were the impetus to proceed against the title companies, but the titles companies do not insure against borrower default. The article you linked to states "The First American entities issued policies on the 4,500 properties insuring the lender against undisclosed liens, missing owner signatures and legal property description errors, the suit said. The bank maintains that all of the properties involved in the suit had defective deeds." So all the claims were against the title, not the defaults.

I am agreeing with you (as I stated earlier), not saying, nor intending to imply, you are incorrect about what title insurance actually covers

Seems like we are debating the nuances of language only understood by people familiar with the business

 

[MissMolly]

[emoji1]

 

[NgineER]

As others have said, lenders title insurance has in my experience been required. Protects them from title issues, owners is optional usually, but I'd recommend it. I actually had a colleague whose home had gone through foreclosure prior to them buying it. They received a letter from an attorney saying that the foreclosure had not been handled properly and a prior owner still had rights to it. Because they had owners title insurance, they did not have to pay for any legal fees involved with this issue.

 

[Ted_Shepherd]

I, as seller, paid for title insurance

Recently sold in Michigan and had to pay for title insurance (local custom). The price was basically the same at all the companies I checked with. Your state may be different.

I sold two houses in California. In both cases, I as seller had to pay for title insurance. Supposedly, that is the custom or maybe even the law in California. I didn't research it; I just paid.

 

[Perryinva]

But $900 does seem high for a rural first time home. And why Should it be needed on a new built home purchase?

 

[MissMolly]

But $900 does seem high for a rural first time home. And why Should it be needed on a new built home purchase?

Because there may be contractor's liens filed. Because there may be unpaid taxes sitting out there. Because the chain of title on the property may have gotten messed up over the years. There are many reasons you would want title insurance. Being a newly built home does not mean the property couldn't come with issues.

 

[brucethebroker]

Use a real estate attorney to do the closing and he will handle the title insurance. They all have a company they do business with.

Not all states require that an attorney close the deal. If your state does not, and you are allowed to close at a title company (known as an insured closing), you have just added an additional expense to the closing if you hire your own lawyer. (Yeah, I know, he is looking out for YOUR best interest so it all evens out...)

As far as I know, real estate attorneys supervise the closings held at title companies anyway.

In our state, it is traditional (but not the law) that the seller provides (pays for) an "owners policy", which is the more expensive policy $600 to $1200, maybe more, based on the value of the home. The buyer is responsible for the lenders policy (kind of like a rider, if you will) that is much less expensive, perhaps $150 or so.

But there are other expenses charged by the title company, too. Review of documents, fees to the local government to record the paperwork, collection of property taxes, local transfer taxes, etc.

Changes in real estate regs after the meltdown now require that the buyer has a right to negotiate who chooses the title company. For many years, the sellers automatically made this decision, and usually called the title company recommended by the listing Realtor.

 

[brucethebroker]

Because there may be contractor's liens filed. Because there may be unpaid taxes sitting out there. Because the chain of title on the property may have gotten messed up over the years. There are many reasons you would want title insurance. Being a newly built home does not mean the property couldn't come with issues.

You are correct. The land is the bigger issue. What if spinster Susan died without any known kin and 100 acres of farm land? 20 years later, a long lost nephew shows up and demands you get off the land he should have inherited. Time to call the title company and let them handle it.

 

[euro]

Not all states require that an attorney close the deal. r.

Correct, but NC is an "attorney closing" state

 

[euro]

Because there may be contractor's liens filed. Because there may be unpaid taxes sitting out there. Because the chain of title on the property may have gotten messed up over the years. There are many reasons you would want title insurance. Being a newly built home does not mean the property couldn't come with issues.

Agreed! Haggle over the premium if you can, but NEVER skip title insurance altogether . The consequences can be devastating. If you want to take chances for the sake of saving a few bucks, then skip the inspection or the survey. Those tend not to wipe you out completely, even if things go a bit sideways