what is Title Insurance exactly and..

themamahen · #1 07/08/08, 05:07 PM

Do i need it? I am getting ready to close on a pc of property and want to know exactly what this is and do i need to purchase it?
TIA

kim

james dilley · #2 07/08/08, 05:14 PM

From my understanding, It protects the Buyer if there are Undisclosed leins and or past due Taxes or leins on the property, And it Warrents A CLEAR title to the buyer. I might not be 100% on target with this info but I Am close. Its well worth the Few bucks. I wish I had used it. But it was my older brother's M I L i bought from. She stuck me with $3,500 in Back Taxes!! Better safe than Sorry When you buy Property!

Jenn · #3 07/08/08, 05:15 PM

this is insurance that the title claim is good. That if long lost cousin Joe shows up and proves that an owner 5 owners ago never should have inherited and sold it, and that he gets it now, YOU and the mortgage company will be paid off for you loss to cousin Joe. Supposedly they research carefully to be sure there is clear title. Which begs the question, if the prior owner had title insurance and you buy from them can't you sue them, and they sue their titlw company, for improper title?

Scrounger · #4 07/08/08, 05:16 PM

Yes, you need it.
It is basically a research to ensure that the property you are buying is free from debts, liens, unpaid taxes, or other problems that might come up and bite you. It ensures that the seller has a clean, clear title and is actually ABLE to sell it to you.

mellba · #5 07/08/08, 06:08 PM

When we bought our place we got title insurance for less money than one attorney quoted for doing the closing without insurance . We paid less than $1000 (I'm thinking it was something like $750) and the attorney wanted $1300 for the title search, closing paperwork, and to represent us at the closing. The title insurance company did the research and paperwork and had an attorney there for us at the closing plus we got title insurance. I thought that first guy wanted WAY too much and that is what got me to check around and find out about the title insurance.

themamahen · #6 07/08/08, 06:28 PM

thank you all very much it's not a few $ it's hundreds and will break my chk book but will purchase it

whitehouse · #7 07/08/08, 06:37 PM

I was a realtor and have seen it all. title insurance is worth the money. it protects you. You say it will break the check book. but can you afford to loose more if joe shows up with a lean on a room addition costing 30,000 or something like that. the old saying penny wise and pound foolish. in our arean the insurance cost the same no matter where you go. but maybe in your area you can shop around.
good luck

hillsidedigger · #8 07/08/08, 06:59 PM

A current survey and a current title opinion by an attorney might be sufficient.

Title insurance generally does not protect against survey errors but does generally protect against attorney errors.

tiffnzacsmom · #9 07/08/08, 07:06 PM

It should not be that much, check with your lender if you are taking out a mortgage maybe even ask who their insurer is, most likely First American or Ticor.

Scrounger · #10 07/08/08, 07:14 PM

From my experience, NEVER go through an Attorney for Title Insurance! They do the same thing as a Title or Abstract company -except - charge you 10 times the price.

We are in the process of trying to sell our farm. Title Insurance costs less then $150. A good title insurance company will have a lawyer on staff or available to sign off on the paperwork. Law firms will stiff you for a huge bill. Go through a Real Estate agent and a Title Company. Here, at least, it is WAY cheaper.

Jan Doling · #11 07/09/08, 09:51 AM

If you have a mortgage you will probably be required to get a mortgage policy for the lender. If so, you may be able to get a discounted price if you get your owner's policy "simultaneously." Say the price for the owner's title insurance policy was $500...and the lender requires a mg policy anyway for $400: insist on a quote for the owner's title insurance policy being issued simultaneously. Also, sometimes you can get a discount if the seller has a owner's title insurance policy less than 3 years old (that is in Fla., your state may have different guidelines.) Here there is a lower rate for title insurance in a sale if the seller has a relatively new policy himself.

Ask for every discount available...they won't tell you about them otherwise.

KindredSpirit · #12 07/09/08, 10:46 AM

Quote:

Originally Posted by Jan Doling

If you have a mortgage you will probably be required to get a mortgage policy for the lender. If so, you may be able to get a discounted price if you get your owner's policy "simultaneously." Say the price for the owner's title insurance policy was $500...and the lender requires a mg policy anyway for $400: insist on a quote for the owner's title insurance policy being issued simultaneously. Also, sometimes you can get a discount if the seller has a owner's title insurance policy less than 3 years old (that is in Fla., your state may have different guidelines.) Here there is a lower rate for title insurance in a sale if the seller has a relatively new policy himself.

Ask for every discount available...they won't tell you about them otherwise.

This is also the case in Kansas. Ask if you can get a "reissue rate" if you give them a copy of the prior owner's policy.

MN Gardener · #13 07/09/08, 11:01 AM

I would get an Owner's title insurance policy and talk to the title co that is issuing it to see what is covered and what isn't. Just like other insurance, every company is a tad bit different so they are the best people to talk to. They will give you a reissue rate if they have a prior policy, so ask about it. I would never get a title opinion from an attorney. The recourse you have is a lot limited if the opinion is wrong.

Jan Doling · #14 07/09/08, 11:24 AM

I would never get a title insurance opinion without an attorney...at least you can get him disbarred if he screws up! Brokers and non-attorney agents are not as well educated regarding real estate law and you have little recourse if they take you for a ride. We have a lot of fraudsters in real estate in my state and having an attorney helped me sleep much better at night.

Scrounger · #15 07/09/08, 12:11 PM

Quote:

Originally Posted by Jan Doling

I would never get a title insurance opinion without an attorney...at least you can get him disbarred if he screws up! Brokers and non-attorney agents are not as well educated regarding real estate law and you have little recourse if they take you for a ride. We have a lot of fraudsters in real estate in my state and having an attorney helped me sleep much better at night.

Title and Abtract companies have an attorney on staff or retained. They are usually LOTS more "educated" on real estate then the average lawyer (here anyway). When we bought our farm, the seller used an Attorney to do the title search/insurance. He ended up doing the same thing that the title company does. Instead of charging $100-$150, the lawyer charged the seller $1500. Title and abstract companies (again - here) are lisenced to do what they do, they do the "leg work" and the lawyer signs off. Go through a real estate agent. They know which title companies to use.

DutchAcres · #16 07/09/08, 07:32 PM

DW and I just went through this (this morning!). We hired a real estate attorney to reivew all the documents related to our purchase. He discovered several things about the loan documents, the deed and the title insurance that were significant.

Bottom line, title insurance is very important, but more importantly, you must either know what you're looking for or get help to make sure you're getting exactly what you are expecting to.

No one involved in the process is looking out for you. Go slowly and ask every question you have. Then get a 2nd opinion. Post questions here. Lots of folks here have gone through the same situations, and have great advice. And it's FREE!

P.S. If I remember right, our owner's title insurance policy cost us $355.

themamahen · #17 07/10/08, 10:39 PM

Thanks all for the replies

Whitehouse I already said i was purchasing it so "What can i afford" does not matter now.

I purchased it. period.

I did not use a title company i hired an atty friend of the family who did the search Title ins through a sep company all told my costs were about 600. for closing ins recording deed exc. BUT BUT BUT .. when you just pulled EVERY penny but a few out, every hundred counts, The land is paid for NOOO Mortgage

so i will suffer a month with no $ with a smile on my face.
thanks again all