Owner's Title Insurance.95% Buy It, 10% Know Why!
(This is a Virginia specific posting, disregard for other states)
Update: An Atlanta Realtor did research and found that the number of cases of Total Loss in Georgia was less likely than getting struck by lightening! I’m looking into Virginia’s frequency of Title Insurance claims. You can’t comfortably buy something if you don’t know the statistics behind it, but you also can’t opt out, so what do you do?
Owner’s Title Insurance is OPTIONAL! That doesn’t mean “don’t get it”, it means, “know what you are buying before/if you buy it.”
There are two types of Title Insurance when buying a house in Virginia.
This is a fixed price by the state and is required by your lender, so stop thinking about it. It is paid once at closing, it is NOT monthly.
For a $400k loan, this comes to about $1,000.
This is to protect the bank’s investments (loan to you) from a problem with the title.
This covers what the Lender’s policy does not cover. Also a one time payment.
You have 3 options:
a) No coverage (rarely do people know this is an option!!)
b) “Standard” policy. $700 (reissue rates are less, more below about that)
c) “Premium” or “Alta” Policy. $1,000 ($500k house, $400k loan)
The OWNER’S TITLE policy will be the focus of this blog. This policy is 100% OPTIONAL.
90% to 95% of buyers buy the Owner’s policy. I have no problem with this, however I would guess that 80% of people buying this have no idea what it is or that they even have an option. That I have a problem with.
- Why do people buy Owner’s coverage?
- It is snuck into the the closing documents (HUD1) by default with NO mention of it being Optional. Sometimes the “premium” policy is put in by default. That really bugs me.
- It is sold as being a blanket coverage that protects you from everything and the fear of losing your house, and going bankrupt. I have yet to get any stats on how often this happens. 1 out of 100? 1 out of 10,000? Once in the USA every year? Or does the insurance cover the costs to cover the $500-$5,000 in legal fees to clear up the issue?
- It isn’t disclosed that the title company selling you this insurance is making a 80% commission on selling you this policy.
- Realtors do not get a bonus for pushing this (thank God), but if a Realtor doesn’t say “you must get it” they will be exposed to potential future liability. For example, if they sell 100 homes and they tell their client NOT to get it, and 1 has an issue, guess who they will sue? So it is easier for Realtors just to say “buy it.” It doesn’t cost them a dime. We like to say “Learn about it, and then decide.”
I don’t mind Title companies making money. What I don’t like is the lack of disclosure. It is not clear to the buyer that this is optional and that most of the profits of the closing come from this. Not the token $200 “fee” they charge. They make their money from Title insurance.
- Again, I am not saying NOT to buy Owner’s Title Insurance. I’m just saying:
- Know what it is.
- Who makes money if you buy it?
- Are you getting the basic or premium?
- Ask your Realtor or Title company for some statistics on how often these policies are engaged. (I’ve yet to get an answer for this one)
- Examples to ponder:
- The closing company pitches Owner’s insurance as a nearly 100% coverage if something goes wrong with your title. However I spoke to a woman that had to sue her title company to get them to perform on her insurance. She put it this way… “I paid $1,000 for a policy, $800 goes to the closing company as a commission, $200 goes to the policy writer. For $200, how likely are you going to be protected from a $500,000 loss?”
- I was once at a closing in Falls Church. The buyer was a President of the Closing company. THE PRESIDENT OF A CLOSING COMPANY DID NOT BUY TITLE INSURANCE FOR HIS HOME. Keep in mind that he would effectively get a 80% discount and he STILL didn’t find it necessary for his personal home. I asked him why he wasn’t buying it and he said “I do the title search personally and I double checked and made sure there was nothing wrong with the Title history.” Then he had the nerve to say “But you should bring your buyer clients here and make sure they do buy the Owner’s policy.” This made no sense to me. Was he not going to double check my client’s Title history as well as his own personal search?
- Remember that you are buying the Lender’s policy too. If something was hugely wrong with the title, wouldn’t the Lender’s policy kick in to clean things up (as in legal fees)? This part isn’t clear to me. If the house is $500k and you put down $25k 5%), are you really paying to insure against $500k, or is it more of an insurance to protect the $25k you have put down?
- On the other hand…
- I have spoken to a Realtor that has been in business for 20 years and she says you would be nuts to not get the policy. She has seen first hand one person that would have had major trouble if they didn’t buy the policy. Now does major trouble mean the loss of the house? All $500k or does it mean they would have had to pay $1,000 or $2,000 in legal fees. I would never pay $500 to insure against a 1 in XYZ chance of having to pay out $1,000. But I might pay $500 to cover $500,000 (if it really even covers you.)
- One of my favorite closing companies in Alexandria says that they use the Owner’s title insurance all the time to clear up title problems that come up. So A buyer buys a house in 2002, and buys a policy. IN 2007 they sell th house but something pops up on the title. This company says that since the seller bought the policy, they were able to close. If they hadn’t bought it… (it isn’t clear if the alternative was a) losing the home (probably not), cover legal fees to clear it up c) ability to close immediately vs delaying closing weeks or maybe months (most likely)
Basic vs Premium
The Premium main feature is that it is supposed to protect you beyond your purchase price. So if your $500k house appreciates to $600k, the basic policy will protect your $500k while the premium protects $600k.
My wish list:
1) That Owner’s Title Insurance would be renamed to “Owner’s Title Insurance (Optional)”, so that consumers would know they have a choice.
2) That I could find actual data on how often these policies are engaged. Are we talking 10% of the time? Once in 100,000? And of those what did it actually protect against. Consumers deserve to have this data.
- Dear Closing Companies, can somebody post a comment answering these few questions:
- Out of your last 1,000 deals, how many times did an owner’s policy get engaged.
- Take the last 5, what would have happened to them if they didn’t have a policy?
- What actual real life “worst case” (because that is how policies are sold) examples do you have of somebody NOT having the policy and being adversely affected by this? What did they lose? $500 in legal bills or a $500k house?
Again, I’m not saying to get the Owner’s coverage or no
t. I don’t care if you do. If it makes you sleep better at night, great, I won’t be disappointed. I will be disappointed if you buy it blindly without understanding it.
Other little known tips:
1) Try and get a Reissue rate. If the former owner bought the property within the last 10 years, they probably have a policy. Track that down and save 20-30% on the Owner’s portion of the Title insurance. If lost, the former closing company can send a fax for $25 to prove the insurance was purchased. Take that $300 in savings and use $10 and donate it to StBernardProject.org.
Conclusion
I am in NO WAY saying not to buy Owner’s Title Insurance. I am not even implying it. I am just saying to make sure you know what you are getting. I prefer to give information instead of giving recommendations, but I can say that if you are at all uncomfortable waiving Owner’s Title insurance, then you SHOULD get it so you can sleep well at night. This is not one of those, “when in doubt, don’t get it” issues.
Here is a link comparing the standard policy versus the premium policy. I still don’t think this is enough information to make an informed decision. Click for link to Owner’s Title Policy Comparison chart. This sales sheet is obviously designed to make the premium policy look like it covers 5 times that of a standard policy.
75% of my clients end up getting the standard. Maybe a couple have bought the premium. I don’t personally buy any Owner’s title insurance, but that is just me, and NOT a recommendation.
Comments? Anybody use one of these policies?
- Written by Frank Borges LL0SA- Broker/Owner FranklyRealty.com
703-827-4006
Videos at YouTube.FranklyRealty.com
Housing bubble? Arlington, Alexandria, mls, homes, Real 22201, 22314, Fairfax Va, DC Realty, Realtor
- 3
- January
- 2007
This blog had my head spinning. The majority of the informaton seems to be written by parties who have no experience in real estate. First off, yes the title agent does make profit – so does any other insurance agent – the closing atty is typically a title insurance agent and takes much risk for that. There is also many things that agents have to comply with that are very expensive and time consuming. Title agents have to retain expensive E&O. When a claim is made it is usually also made against the atty’s E&O policy. Typically, they have around a 5-10k deductable which has to be paid by the atty, even in some cases where its not the attys fault. Yes the owners policy pays for title examination errors but those are the rare instance of claims I see. With the amount of fraud going around right now with owners and lenders – this coverage is even more necessary than ever. Imagine buying a foreclosure proprety and then finding out the prior owner is claiming it was a fraudulent foreclosure – or buying a new home and finding out that the builder lied and did owe 1000s to a supplier. In GA all premiums are standard – there is no way to get a discount as they must charge the rates posted with the insurance commissioner. This cost is the same whether you went to the title insurance company or an agent/atty. All lenders require a policy on first mortgages and the additional cost to add on an owners policy is typically $100 simultaneous issue rate. Finally, any attorney that bought property and didnt get it is probably not a real estate attorney. I think that we probably see around a 5% claim rate and only about 1/10th of that is due to title examiner error. The rest are improperly recorded items or clerk errors, fraudulent transactions, property line or legal errors due to surveys – things that would not be recoverable without insurance. Most that we see are defendable but it takes attorneys and fees to correct the problems and this is all covered under the title insurance.
Hello Wendy, I really wish you would put your company name and title on here.
Every state is different. For your state it might only be $100 difference, but in Virginia it can be $600-$1000. And your example was with a foreclosure… sure, MORE reason to get it. But are you saying the flip is true too, that you should not get it if the home had one owner for 50 years and you have never seen a cleaner transaction or title? Can’t have it both ways.
And in no way am I saying not to get title insurance. That would be stupid of me to say. All I am saying is that you should know what it is, and who makes what.
I sat in on a closing the other day. The buyer said to the closing attorney “Is this something I have to buy”, SHE DID NOT ANSWER THE QUESTION!!! She skirted it and instead went into the buyer’s options of buying the standard vs the premium. Implying that his only option was to buy one of two offerings. To me that is lying. Just dead wrong. If he knew she was making 80% on it, and if he knew she skirted his question, he wouldn’t be a happy camper.
That is the only purpose of this post.
Thanks for the stimulating info. I just closeD last week but my bonehead atty messed up the HUD and left off the title insurance. Now they are trying to collect another $1500 for lenders and owners policy (enhanced, of course) and I wouldn’t have even noticed if they hadn’t left it off and tried to get it after the fact. I’m struggling with whether or not to get the owners policy. It’s a foreclose…
Hey Frank,
I’ve been working with our attorneys to come up with some articles that outline real life examples when the owner’s title insurance policy came into play: http://www.federaltitle.com/claims/
Hope these stories are what you had in mind! More to come…
Thanks,
Nikki
Hi Frank,
I am Asst Operations Mgr and do the underwriting for a Georgia title examination company, Augusta Title, Inc. I’ve been in this industry for 25 years. We also have an affiliated Florida agency and work occassionally on commercial transactions throughout the southeast.
I think Nikki gave some good examples but did want to comment on that 50 year title that’s been owned by one party. That search can actually be one of the toughest to run in Georgia because once you get back 50 years the records get cloudy. You’re also bound to run into a probate at that point which brings heirs in. Old probates are tough to navigate and can leave claims open for years to come, especially if children were involved.
Also, old properties have problems all the time with legal descriptions, encroachments, and other survey issues. Cant tell you how many times I’ve found that the long winding driveway someone has been using they dont have any rights in because grandpa sold that land a couple of years ago.
Granted, we do look for these things but it can be easily missed especially when your using old handwritten deeds. So with the old properties probate and survey is usually the issue.
Another big thing we have to watch for is divorces. A deed may be of record where a ex-husband transfers his interest in the property but without reviewing all the divorce documents you may not know that upon sale the wife has to give the ex 1/2 of the proceeds of the sale. This again is something you look for but the divorces arent always filed in the same county as the property so you may not even know.
I could go on with examples all day but simply put, While I will admit that title insurance is something the odds say you probably wont need, it is something that when you do need it is irreplaceable. It is well worth the price when you consider loosing your property and equity.
I did want to comment on the attorney that didnt answer the purchaser’s question. That was wrong – the attorney has a duty to inform them that Owner’s coverage is optional. Lenders is not. They also have a duty to inform a purchaser of what it means if they dont purchase title insurance.
Thank you for your engaging blog on this topic. Here is my problem with Owner’s Title Insurance…How would title people like it if they went to the doctor for a procedure and he/she said…Here are the charges for this surgical procedure. That line there is optional you can choose to buy malpractice insurance in case I screw up while I have you opened up but if you elect to not buy my insurance then you are on your own if I screw up. This is EXACTLY what the title industry is doing…buy this insurance to cover any mistake that we may have made. I’m closing on a home in July and I will not be taken hostage on this sham! Know this title company…do your job correctly and there will be know worries…screw up? and I’m coming after you!
I just spoke to the settlement company I’m using and they made it sound like the Owner’s Title Insurance is required on a home purchase. In fact, they didn’t even ask if I wanted standard or premium coverage – they automatically chose the standard coverage for me and my guess is that it’s because they get their cut of the profit either way so there’s no real incentive for them to up-sell.
At a minimum, they should ask us if we wanted the insurance and if so, what type of coverage we want. How would you like it if you rented a car and they automatically assume you want to purchase insurance coverage and don’t tell you that it’s optional?
I will be closing on a new home in the middle of an established community built by a major national developer (Toll Brothers). It would seem to me, that I would be at an even lower risk, then buying from a previous owner, and the owners title insurance would be a waste of $$$. By the way, the charge for a $600K home is almost $2500. The lenders insurance about $1100. Seems excessive. Comments please.
What does your agent say?
I can’t give advice on this, especially if I am not your agent.
No real estate agent involved. We visited the sales office of the developer and went from there. Closing in about 3 weeks and the latest GFE shows both title insurances, which led me to research and your blog.
Should have used an agent. Doesn’t cost you a dime, and we might actually know a thing or two and some of the builder tricks they use to get a few several thousand more out of you.
Oh well.
I am now the poster child for Owner’s title insurance in Virginia. I had a good contract on my house, I was in the process (on the plane) moving to Idaho when I found out, 2 days before closing, that there was a problem with my title. I had paid cash for my house, have an owner’s policy. Apparently the guy I bought the house from 4 years ago bought it when it was in foreclosure from the previous owner. She was in foreclosure with Washington Mutual, and an unauthorized person signed off on the foreclosure sale to the guy I bought the house from. He had no idea. I had no idea, my title search didn’t reveal this. However, my buyer’s title search showed it. Now I’m screwed. I’m here trying to find out what they’re SUPPOSED to be paying me. So far I’m renting in Idaho instead of buying (since my purchase was contingent on my getting paid on VA house) and yesterday my buyer said they will be looking for another house since they can’t wait the months to a year that I’ve been told it will take to clear this up. Now I have a vacant house, lost contract, and a title claims rep that won’t return my calls. Wow, I need help. Think I’ll call another attorney tomorrow. Mine seems to be in bed with title insurance company… probably not good.
I don’t understand.
Poster child for what? For buying title insurance or buying it and it not being useful when you needed it?
I thought title insurance was for exactly this type of thing?
Please re explain
Poster child for buying it. We’ll see how this pans out, but I have mounting financial loss and no one is helping until *I* can get the house sold. Wish me luck selling it with a defective title. Until then, I just don’t know how I’m going to afford the expenses.
I am slow.
Seems like you are the poster child for NOT buying title insurance.
My understanding was people bought the insurance EXACTLY for the reason you bought it. And it is supposed to be a simple slam down of the title insurance policy and it would fix all problems and let you proceed to closing immediately and not have to wait months or years to fix it through the courts.
If you are having to fight, hire lawyers etc, that to me does not sound like a successful policy. Maybe I can get a title insurance rep to chime in.
I have to agree that Becky would only be the poster child for Owners title insurance if her title company had swooped in and saved the day as a result of coverages included in her policy. In a case in which coverage exists, this is is exactly how it happens. The title underwriter (for the seller) will typically review the situation and issue a Letter of Indemnity to the agent for the new title underwriter (for the buyer) thus allowing the transaction to go to settlement. This Indemnity basically tells the new title underwriter that if there are any costs incurred in clearing up this title, they will be covered by the seller’s title company. Such an indemnity is usually sufficient to convince the new title company that they can go to settlement without any future risk of liability as to the issue in question.
Now, I hate the standard lawyer cop out that “I cannot comment on the specific title claim or potential claim in question without knowing all the pertinent facts” but, I cannot comment on the specific title claim or potential claim in question without knowing all the pertinent facts. There are just too many variables that could impact Becky’s particular title issue. In any event, were I Becky, I would be applying as much pressure as possible to both her title agent and that agent’s underwriter to either get this issue resolved or at least to coordinate with the new title agent (or underwriter) so as to motivate that new agent just to get this deal to settlement and fix the problem later. If that isn’t working, I would try to get the Realtor who recommended the first title company involved. Title companies generally get motivated very quickly when the Realtors from whom business is referred start to express their displeasure.
Actually my title insurance company did say they would ‘insure over’ the problem, but New Republic, the buyer’s title insurance company, would not accept that. So I’ve been told the buyer is looking elsewhere. I have, however, refused to sign a release releasing them from the contract. I believe their attorney, a hack at best, has gotten ill advice from someone who told him that he should not allow this house to close due to the defective title. So there is a certain amount of secrecy as to what the buyer was actually told. Overall, I am attempting to deal and push as hard as I can, but relisted the house today.
Well, then is sounds as though your Owner’s title policy is working exactly as advertized. If your title insurance company is willing to “insure over” the issue, then there is really no reason why the buyer’s settlement company or attorney should not be willing to go to settlement. Sounds like that is where the problem lies. Perhaps you should suggest to the buyer that he/she should move the settlement to the company that did your settlement when you purchased the property. They will certainly be happy to get it done.
So my title insurance company still won’t return my calls…. leaving me to drown in my efforts to mitigate my damages alone. House has a showing Sunday, but then would YOU put a contract on a house with a disclosed ‘defective title’? I wouldn’t. I’m trying to get a letter from my company saying they will insure over and through this matter, but no luck yet. They did say in an email they would insure over, but I need something official to calm potential buyer’s fears (if that is possible). Do I need an attorney to work with my insurance company for me if they continue to ignore me?
Scott,
If buying an Owner’s policy is considered working as advertised when other settlement companies won’t honor the “insure over”, then I would consider that broken.
If the settlement company freaks out the buyer, then it is too late to say “maybe somebody else will insure it.”
Yes, recommending that the buyer go back to the first settlement company might work.
Now the question is does the seller have “marketable title,” as I believe the contract calls for, and if not, can the buyer walk?
I finally got a manager on the phone, who called the buyer’s title compnay and the buyer’s inexperienced attorney, and says we’ll hear something Monday. I’m hoping this nightmare may be over…
I’ve been a lender in Northern Virginia for the past 8 years (and have provided financing for my clients purchasing your listings — small world!)
I’ve struggled to get a crystal clear understanding the Owners Title insurance. I’ve asked several title agents and the uniform response is: “it protects your position of equity in the property in case of a title defect.” Sounds much like the canned Windows response “Error 0000495L6 detected.” It’s technically right, but doesn’t tell you anything.
Like you, I was curious for many years to figure out the real claim numbers behind the policies. I work closely with 2 major title companies in the DC area and have yet to experience a claim first hand. Some of the agents say its good luck, while there is one that says Owners Title Insurance is just an unnecessary expense for buyers and a cash cow for them. As I fully do not agree with that comment, I have to agree with your remark on Owners Title Insurance not being explained. I’ve attended roughly 800 closings (I attend as many of my closings as I possibly can) over the past few years and have gotten to sit in and listen to title agents do their thing. Of all the agents I know, ONLY TWO will let the clients know this is an optional charge. Most agents will simply list off the total “lump title charges” and not bat an eyelash at the fee.
Title agent: “…and these are just your title charges in order to get your loan. Moving on to your transfer taxes and escrows…”
From the 1,400+ closings I’ve had, I’ve never heard of 1 title claim (purchase transactions equate to about 60% of those closings.) It means that from roughly 850 purchases, not a single title claim. Not to say they don’t happen, just not in my data sample.
I agree with you: this charge should be CLEARLY explained. Last year I was at a closing where a petulant title agent told my clients that the “Enhanced/Eagle Owners Title Policy” was a mandatory charge. I quietly pulled her aside and away from my clients, told her that fact was not accurate and to please correct it. She proceeded to raise her voice at me and said “what do you care, it’s not like I go and take your commission away, how dare you?!” The Title company manager/owner was in the next office, came out after listening to her rant, corrected her in front of clients, and continued the settlement himself. She stormed out in a tantrum. This is a clear example of how uneducated some agents are in respect to the title insurance. Owner was embarrassed and apologized for her behavior. From this I also learned that some title agents clearly work on full commission.
For title agents: This charge appears on purchase HUD 1’s. Practice a smart response before closing and have the answers ready for questions you know buyers will ask. It’s much better to answer questions with responses you’ve already given plenty of thought to than to do your best to hide the fee. It is a legitimate charge with a purpose; why not just explain it and show it has value? 4/5 times at closing the buyers will turn and ask me if they should get it. Do to legal reasons I have to be exceedingly cautious of what I answer and how I answer it.
Thanks Frank, GREAT post. The ultimate reason I landed here was because I go to closing on my purchase in 7 days and see a hefty $1,900 charge for the Owners Title Insurance. I wanted to read more on it before I made a decision. I already checked the title work; looks good. I have already decided I will not purchase it. Thanks again for creating this post. Lots of great information and has given me valuable information helped me reach my final decision.
Wow, great comment. I hope others will take the time to understand it like you have. I also have been in a closing where the other side’s client literally asked if it was required. The settlement person said YES. Since I worked for the other side, I did not say anything, but was grossed out.
They get much more with the higher policy.
I found this blog to be really helpful, thanks for posting! I am going to closing next month and had the same string of questions for my lender. Is owner’s title insurance required? How often is it really used? What exactly it at stake if I opt out? My lender referred me to the title agent and I let him know I would be researching on my own as well. He did tell me it was optional but strongly encouraged. So I’m glad I got the truth on that front. The insurance in my case amounts to approximately 1500 of the settlement charges, a third of that is owner’s. It doesn’t state that it is optional so I’m glad I asked. If it is optional, i am now wondering– is it something I can shop around for? Do I have to go with the one they are offering me? I’ve got a lot of research to do before I make my final decision. If I come across anything life changing I will certainly share.
Thanks Jessica,
Every state is different. Occasionally I hear rumblings of “ala carte” title insurance (whether it be just owners or both) and somehow it always gets shot down, so I really doubt it, but let me know. Also note that there usually is a PREMIUM owners and a Standard owners policy. Most put the premium by default. Also ask about a “reissue rate” if the previous owner bought within 10 years.
I am purchasing 5 acres in Colorado and having a custom home built. I just got the title search today, I am supposed to close end of December.
The title company sent me the paperwork on the search.
(a) ALTA Owners Policy 6-17-06 $350,385.11
Rebecca R. Goldsmith
(b) ALTA Short Form Residential Loan Policy 6-16-07 $330,687.00
Cherry Creek Mortgage Co., Inc., its Successors and/or Assigns
PREMIUMS:
Owners Policy 515.00
Bundled Loan Policy 441.00
Form 110.1 Delete 1-4 OP 60.00
Since I had no idea what this was, I did a Google search which landed me your blog page.
nowhere in this documentation does it state the above premiums are optional.
The title documentation does state that there are judgements:
Entitled: Transcript of Judgment
Executed by: Equable Ascent Financial LLC FKA Hilco R.
Against: Laura Martinez, et al
Amount: $2,556.12
Recording Date: August 9, 2001
Recording No: Reception No. 210076049
So in this case…. is it advisable to get the insurance? Originally since it was just a land purchase…. I wasn’t really going to bother with it but since the previous property owners can’t seem to pay their taxes or whatever is wrong with the property, should I pay the insurance to allow all of this to get cleaned up?
I was under the impression that before my builder purchased the land, they required the previous owners to clear all this up so it may just be a delay in recordings that is keeping this on the records still? The land was purchased by the builder in June.
I also found a note in here “bundled loan premium rate” so again, no mention of standard versus premium.
NOTE FOR BUNDLED LOAN POLICY: Unless stated contrary herein, the Company will incorporate and provide the following ALTA/Colorado endorsement(s) (including the versions of ALTA 06 endorsements) on the ALTA Short Form Residential Loan Policy or ALTA Loan Policy, together with or included in said loan policy is a tax status letter, commitment vesting and all-inclusive rate.
Endorsement ALTA 9 or 9.3/Form 100 Restrictions
Endorsement ALTA 8.1 Environmental Protection Lien
Endorsement ALTA 4.1/Form 115.1B Condominium or ALTA 5.1/Form 115.04 Planned Unit Development
Endorsement ALTA 4/Form 115.1 Condominium or ALTA 5/Form 115.2 Planned Unit Development
Endorsement ALTA 22/Form 116 Location
Endorsement ALTA 28-06/Form 103.1 Damage to or Forced Removal of Improvements
Endorsement Form 100.29 or Form 100.30 Mineral Rights
Endorsement ALTA 14.3A/ALTA 14.3A-06 Future Advance – Reverse Mortgage with
Construction Lien Coverage/Form 111.11 Revolving Line of Credit (Lender)
And any “one’ of the following optional endorsements:
Endorsement Form 111.9 FNMA Balloon
Endorsement ALTA 6/Form 110.7 Variable
Endorsement Form 110.9 Adjustable
Endorsement ALTA 6.2/Form 110.8 Negative Amortization
There is a bunch of other legal mumbo jumbo in here I don’t understand that will require more google searching but I am concerned about the judgements against the previous owners. Thoughts?
Frank,
What would you say if I were buying a brand new home, from Toll Brothers in a planned community. Is it worth the risk to not purchase the owners title insurance ?
Charles
I am refinancing my mortgage, and have a title policy from the original loan from 8 years ago. Title costs are listed on the preliminary refi closing costs. The Lender said I could get estimates from local title companys and choose any company I want to go with. If I never refinanced, the original policy would still be in place as long as I owned the property, correct? When I refinance is the original policy invalid? Is it tied to the property? Or the financing? What is the value-add of a new policy? Should a re-fi title ins cost less than one for the original purchase? I live in Wisconsin.