When using the builders contract as opposed to the trec new home contract who do you think the contract will favor? I've proudly assisted many clients purchase new homes in south Irving and the builder always uses the trec contract and pays for the title policy. With very low overhead a builder doens't need to nickel and dime buyers. If you're reading this and looking for a new home in Irving let me know, as I work with a builder who negotiates fairly and is low cost per square foot.

Prem....all expenses and costs are negotiable when you sign your purchase agreement. Sounds like you went directly to the builder and are using their financing. We can often negotiate the the seller to pay for title policy and some other charges. What does your realtor say? If you have already signed your purchase agreement, this is covered in the agreement and you will likely need to pay it.

Title Policy on a new house is still required by most lenders. The land was still owned by someone before the builder bought it and title needs to be researched. If you pay cash, you are not required to buy a title policy, but it is recommended. If you get a loan, then most lenders will require.

Have your buyer's agent review terms of executed sales agreement signed by you and the builder.

No one can render an opinion till every page of document investigated for whose expense cost of title policy.

At times a GFE can have errors .....who published the report. If executed sales offer states seller purchase then simple change .

I seen where errors are made ....why buyer's agent immediately makes a response address mistakes .

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Lynn911

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Basically this really depends on how the deal was negotiated. The Title Policy is a negotiable item, many times the seller will pay for it. However in the case of builders when working with unrepresented buyers they will move that over to the buyers responsibility.

The original contract should state who agreed to pay for it.

RJ

Hello Prem and thanks for your question.

There are usually two (2) title insurance policies purchased when a home is sold. The first one is purchased by the Seller and given to the buyer to provide you (as the buyer) with "good title" and protection against anyone seeking to cloud or damage that title after the sale. The second title policy is purchased by the buyer and it is for the benefit of the mortgage company.

Believe it or not, even though you have a new home, there is always the possibility of someone asserting claims against (not the home but) the land where your home is situated. Although the possibilities or any claims are slim, the mortgage company--nevertheless--will require the purchase of the title insurance as a condition of providing you with a loan. The amount is a "one time" fee and considering how often vast and devasting a title issue can become if it is does appear, it's a small amount to pay for years of coverage and security.

If you have any questions about the specfic requirements for your loan, speak with your loan officer or lender. And, congratulations, on your new home!

Sincerely,
Grace Morioka, SRES, e-Pro
Area Pro Realty
San Jose, CA

If you are using a mortgage loan to purchase your new home then the lender is going to require you to purchase a title policy in order to loan you the money. The lender wants to make sure that you carry title insurance to protect them and yourself.

A title policy is required by the lender. Typically it is paid for by the seller, and it is totally negotiable with builders. It seems that you didn't negotiate it when you signed a contract.

Did you have a buyer's agent represent you? If so, they should have brought it up as well as all the HOA transfer fees etc.

Naima
214-289-8555
Naima@Sumner-Realty.com

Yes, an owner title policy is a must...regardless of new or existing property.

The policy provides the new owner assurance of proper title/ownership of the property. The bank (if your purchase is financed) requires a "clear" title (no other prior or existing claim against the property) before releasing the funds to close your purchase.

Usually, this cost is paid for by the seller. Or, sometimes, it is a 50/50 shared cost between the seller and the buyer.

Yes, it is a must.

Builders like to make the buyer pay for these policies when they can get away with it although it is normal and customary for the seller to pay for it in Texas.

Do you have a realtor? Does the purchase agreement say who pays for this?