Comments on: Owner's Title Insurance.95% Buy It, 10% Know Why!

By: Ricardo Estrada

Ricardo Estrada — Fri, 26 Aug 2011 02:49:45 +0000

Frank, thanks a billion for your posts. I found this website by googling on Title Insurance as I did not know what was that charge all about. After I read your posting and all the comments, I exposed the idea to my agent, and I encountered a tremendous resistance from him since I decided not to take the Owner’s Title Insurance. But later on, to ease everyone’s emotions, I went ahead and follow your advice of getting re-issued from the former owner. At that time, my agent was happy to hear me say that. However, if my agent knew about this process, I questioned “Why didn’t he present me with the different options, rather than just say that I must take the insurance from the Title Company?” . . . It might be laziness or ignorance . . . two attributes that makes me wondered how someone could be successful in their endeavors. Anyhow, I decided to donate 10% ($30.00) from my savings vice $10.00 to your charity, http://www.stbernardproject.org/ I like to see my money going into a good cause rather than pocketing in someone else’s wallet. By the way, I am from Miami, but living in Virginia now

By: FranklyRealty.com

FranklyRealty.com — Tue, 09 Aug 2011 04:13:24 +0000

Wow. Start with calling the closing company, then the warranty company and if you get nowhere and you think it is important to do now (vs waiting until you sell) call a real estate lawyer. Sorry I can’t be of more help.

By: robert josephberg

robert josephberg — Tue, 09 Aug 2011 03:27:32 +0000

Dear Frank,
I purchased an owners title insurance in NY (Old Republic ) on an empty lot 15 years ago . I then built a house . The builder who also sold me the property made a lot line mistake and sent me a corrected deed and filed that along with the new survey to the local town and county. . I am now on my third refinance. The original owner’s policy bought by me unfortunately has the original lot line and wrong description of the empty lot I bought before the house was built and after I purchased the empty lot. > the builder owned all of the lots > there is no dispute . How can I get my original owners policy corrected to reflect the right corrected deeded property that both the bank , lender and mortgage company , county and local authorities now have on file . Ironically , the same title insurance company (Old Republic)was also used by the lender but was originally corrected 15 years ago. In essence 15 years ago before my subsequent refinaces they owned both the lenders and owners policy with different lot line descriptions.My owners policy was purchased one year before the leneders policy was purchased since I built on an emty lot but before my builder made a mistake and had to change the lot line description >I financed my house one year later. I did not realize this mistake until recently.. Do I have to pay a full fee or a service fee to Old Republic?? How should or can I correct this. I am refinacing next week with Fidelity National as the new lenders policy.Your direction would be appreciated.Thank you
Robert

By: robert josephberg

robert josephberg — Tue, 09 Aug 2011 03:23:09 +0000

By: The Accidental Alaskan

The Accidental Alaskan — Sat, 23 Jul 2011 15:44:56 +0000

What a great thread! An excellent site in general and I will be a regular viewer. I am in process of my sixth real estate purchase and finally getting around to asking about this cost. This conversation is helpful but, as all point out, it is one’s own decision.
Ms. Cipa’s presentations were disappointingly vague, but expected. I find most office-sited folks related to closings, nice a persons as they may be, quite like foxes guarding the henhouse. Real Estate in general is based on energetically pursuing our own self interests, and nowhere is this more evident in the Aura of Mystery surrounding the Ritual of Closing.
I have never had a disasterous closing, but the inevitable various bits and pieces of hassle have always come from closing (as vs. agents or the seller/buyer across the table).
My gripe with issues like this: Call me old fashioned, or even a curmudgeon, but as one who puts up the money, does the design and renovation work, runs to and from the dump, store, etc, and in general breaks a sweat, I am often annoyed to see others make money off my projects with so little risk or effort on their own parts.
Like all of us (I am an architect as well), you and your guests need to cover our legal butts for liability so we can’t come out and say “don’t buy it”, but I find this site (and in particular your own perseverance Frank) really great! Thank you for sharing all this.

By: Kelly

Kelly — Sun, 24 Apr 2011 18:11:50 +0000

http://www.consumerfed.org/pdfs/Title_Insurance_Testimony042606.pdf

By: Ken

Ken — Fri, 04 Mar 2011 22:49:54 +0000

Hi – I’m bought a house and did not buying owner’s title insurance. I’m wondering if I have a change in heart at some point if I can buy an owner’s title policy later on.

By: Lauren Garrick

Lauren Garrick — Mon, 25 Oct 2010 21:46:07 +0000

The comment “why would you want to gamble with the most important investment in your life?” really hit home with me. I am a first time home buyer in Mississippi, and while not in Virginia, feel like I learned a lot just by reading this. Thanks Frank!

By: Dianne Hansen

Dianne Hansen — Sun, 11 Apr 2010 02:32:38 +0000

Hi Frank,
You provide great information for buyers, sellers, AND agents. Thank you! I wanted to mention that the new HUD-1 now discloses the amount of “Agent’s portion of the total insurance premium”. When they say “Agent”, they don’t mean your real estate agent, they mean the insurance agent. For example, on a $250,000 home, the total premium (lenders, owners with enhanced) is roughly $1300, of that roughly $1100 is the INSURANCE Agent’s commission. If you want to know the commission split for the lender’s only policy, ask for a quote on just lender’s title insuracne (and the breakdown), then ask for another quote for lender’s and owner’s title insurance (and the breakdown), and finally, lender’s and Enhanced owner’s title insurance as shown on the HUD-1. You can ask for a HUD-1 well before settlement, but all the numbers will not be available. However, the title insurance numbers will be.
Good luck with your title insurance issue, unfortunately, the new HUD-1 made it a little more clear in some respects, and a little more confusing in other ways.

By: Paul Rummel

Paul Rummel — Wed, 07 Apr 2010 21:14:10 +0000

Great blog here. I myself am opting out of an owner’s policy for a property I am purchasing. I was very surprised that my real-estate agent AND lender did not know that an owner’s policy was optional (or were simply playing ignorant). I have opted out for the last three home purchases as well with no issues. I dug a little deeper and ran across this article. You want actual payout numbers? The testimony at this link is VERY educational:
http://www.consumerfed.org/pdfs/Title_Insurance_Testimony042606.pdf