Post # 1
Member
1503 posts
Bumble bee
My Darling Husband and I are buying a house and trying to decide if we will purchase owner’s title insurance. On one hand it seems like a sham, but on the other hand it would suck to have something happen and not have it. I also read that title companies make 80% commission on this type of insurance, which makes me want to not get it just on principle. Bees who own houses, did you purchase owner’s title insurance?
Post # 2
Member
2576 posts
Sugar bee
I just looked it up since I don’t think it’s common where we live. Sounds kinda like a waste of money but like I said not very familiar with it.
We built from strach so if there was problems with our RPR we could most likely sue the developer. Here the lean period for a trade/company to register a lean is 45 days after that they cannot so we don’t have to worry since that period is now over. You can also not transfer title from builder to buyer with a lean.
Post # 3
Member
1503 posts
Bumble bee
sway0060: Yeah on new construction it isn’t an issue. The home we’re buying is older, but the liklihood of something happening is so low.
Post # 4
Member
5075 posts
Bee Keeper
we had to. It’s required.
Post # 5
Member
2576 posts
Sugar bee
kb7:
Sounds like it’s mostly a US thing. Seems to me if a home has been there for many years any property issues should have been found long ago? I would think like you said that the probablity that you would need it would be low. A title search also should bring up any leans against the property.
I guess for me it would depend on how much it was.
Post # 6
Member
1503 posts
Bumble bee
sway0060: Yeah, there will be a title search as we have to buy lender’s title insurance. Basically owner’s title protects against any crazy dirt that couldn’t be brought up with the search. It’s $900, which I feel like could be used for so many other helpful things!
Post # 7
Member
2576 posts
Sugar bee
If its a flat rate I would just do it I guess. The only insurance we have to buy here is homeowners because there is a mortgage, but honestly even if we didn’t have to I would because god forbid anything happens we are covered. We were offered not short of 7 different variations of insurance and if we had purchased all of them it would have been over $500 a month.
They mostly scared you into well if your spouse died how would you pay for the house. We have a very good life insurance policy that will more than cover the hosue.
Post # 8
Member
2947 posts
Sugar bee
kb7: Title insurance isn’t allowed where I live (Iowa). My Darling Husband an attorney says there have been 3 cases in state history where title insurnace would have actually decided the case.
Post # 9
Member
488 posts
Helper bee
I’m pretty sure it was required for us to get. I was told it also protects if a contractor or someone did work on the house and never got paid, then shows up at your door wanting payment. Apparently, that would then fall to the owner of the house, regardless of who actually hired them?
This was my take on it anyway- it may differ depending on where you live as well. It sucks as another added expense, but we have peace of mind in that regard anyway.
Post # 10
Member
10573 posts
Sugar Beekeeper
It’s pretty new here, but I’ve heard that it is sometimes offered by the lawyer when doing all the paperwork, often for around $100. If it was offered to us, we probably would have, but it wasn’t and we were too lazy to look for it ourselves.
Post # 11
Member
1088 posts
Bumble bee
It’s really pushed around here (MA) and most people get it. It can be very useful if the house has changed hands a number of times, if it was carved out of a different lot, etc. My husband and I didn’t get it for our house mostly because I researched the deeds back to the original one and it was all within one family, basically passed down to the next generation.
Post # 12
Member
1503 posts
Bumble bee
Kir32: How did you go about researching the deeds?
Post # 13
Member
1088 posts
Bumble bee
kb7: Many states have the deeds online. You can research deeds, liens, mortgages, easements…anything you want to know about the property really.
Post # 14
Member
7806 posts
Bumble Beekeeper
Here in SoCal the lender requires it.
Post # 15
Member
437 posts
Helper bee
We were required and thankfully we did because our INSANE next door neighbour it now threatening to sue us because he thinks our septic tank is on his Property.
The guy is an absolute nightmare (we’ve nad to call the police on his TWICE for coming on our property with his workers and digging stakes in our yard, leaning up against our house, and harassing us constantly.)
the ONLY reason I haven’t died from a panic attack is IF by some magical reason the municipality, building permits office, and watershed offices are all wrong then title insurance will pay for our septic to be dug up and moved.
insurance is one of those things that’s super annoying, but when you need it you’re incredibly thankful you have it.
