Home Buying in 32904>Question Details

Jose Puras, Other/Just Looking in Melbourne, FL

Buying a new construction home from Adams do I need Owners title insurance?

Asked by Jose Puras, Melbourne, FL Thu Aug 16, 2012

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in this area of Florida, it is customary for the seller to pay the Owners title policy, except in the case of new construction - where the owners title policy cost is pushed to the buyer. If you are getting a mortgage, then your lender will require that you be conveyed title insurance. My answer is Yes you will need it if you have a mortgage, and yes you would want it.
1 vote Thank Flag Link Thu Aug 16, 2012
Title Insurance: What Is It?... Who Cares? ... Who Pays?

Title is the foundation of property ownership — your legal right to possess and use your property. As a Buyer you want the assurance that the title to the property you are acquiring is "clear". You don't want a previous owner to show up and claim ownership of "Your" house.

Two types of Title Insurance:

Owner's Policy: to protect YOU as the new owner from financial loss in the event of problems from title defects. In Brevard County the seller usually pays for this insurance policy for a buyer. Can be negotiable.

Lender's Policy: to protect the Lender — insuring that the lender has a valid, enforceable lien on the property in the event of title disputes. The cost of this "simultaneous issue" policy is charged to the buyer at closing.



How it works: in condensed terms....

Title Companies or Attorneys research the history of the property in public records to confirm the seller's right to sell the property and any encumbrances that may exist against the property. The Title Company then issues an INSURANCE policy to protect the new owner against any hidden defects, unrecorded liens, fraud etc that could harm the new owner's legal right to the property.

Even the most diligent examination of the history of a property may not reveal all things. Issues may arise from fraud, mental incompetence, prior existing marriage claims, mistakes in recording legal documents, undisclosed divorces, forgeries... the list goes on. Any of these circumstances might be impossible to discover in a title search and exam. In the event that someone from the past shows up and is successful in proving a claim and ownership of the property, the new owner's investment in the property is protected via the title insurance policy.

Be sure to Rely on the Experts: Like STATE TITLE, SUPREME TITLE

Ask questions! Make sure you understand your level of protection and level of risk. Rely on experienced Title Agents to walk you through the closing process and explain any of these issues.


WATERMAN REAL ESTATE TEAM
1 vote Thank Flag Link Thu Aug 16, 2012
Absolutely, Title is your legal right to own and use your property. As a Buyer you want assurance that you have clear the title to the property you are purchasing. You don't want a previous owner to show up and claim that they own your house.
0 votes Thank Flag Link Sat Nov 3, 2012
I have may happy Adams owners. But as so Vera so clearly well outlined, stuff can happen. Your best bet to to find a local agent (I am NOT local, so I don't count in your hunt).

Marge Bennett and I are not closely related, at aleast as far as I know.
John
0 votes Thank Flag Link Thu Aug 16, 2012
Absolutely. and this has no reflecion on Adams Homes.
0 votes Thank Flag Link Thu Aug 16, 2012
Check your contract to see who is paying for the policy! Typically the seller picks the Title/Closing company because they need to supply "Clear Title" to the buyer. If a mortgage is involved that is another question too. The real question is why buy New when there are so many existing homes available in our market? More often than not You can save and get more upgrades with a 2 to 5 year old home!
0 votes Thank Flag Link Thu Aug 16, 2012
Things in Florida may be different than NY.

At least to me it appears so, but I know nothing of NY law.

The two Florida agent give excellent advise. I concur with them.

John
0 votes Thank Flag Link Thu Aug 16, 2012
Owners title insurance policy protects your down payment. It pays you the money you need to purchase another home if there was a defect in the title and you don't really own the house.If you put a lot down definitely get one. If 100% financing, you are wasting your money.
0 votes Thank Flag Link Thu Aug 16, 2012
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