BDMATT, Home Buyer in

Owner's title insurance?

Asked by BDMATT, Mon Sep 16, 2013

Our mortgage company is quoting $1350 for "Owner's Title Insurance". Is this worth is? How common is this to have? How often is it needed?

Thanks in advance!

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8
BEST ANSWER
I can tell you it is so worth it! The seller should be paying for this in most instances. Let me give you a real life example that happened to me where having title insurance was worth it. I was the victim of a fraud situation. A seller sold me their house and told us the house was free and clear. The title company also found that it was free and clear. We bought the house and everything appeared fine. 2 days after we bought the house we were told by the title company that the house was not free and clear, the seller forged documents and they were recorded with the county. So the title company ended up doing a claim and they had to pay off our lender. The seller is now in prison for his fraudulent actions.

Now this is an extreme case scenario. But imagine I didn't go through a title company. I would own this house and there would have been a 1st mortgage before my mortgage that could have foreclosed out from under me because the payments weren't made.
3 votes Thank Flag Link Mon Sep 16, 2013
Thanks for a great question

Buying a home can be the wisest and most rewarding investment you'll ever make. Title insurance plays a major role in making certain home ownership is safe and secure. It protects you against a number of title defects that could jeopardize your interest in the property you have just purchased, such as an unsatisfied mortgage lien, unpaid taxes, judgments or other recorded claims against the property. Claims could arise through easements, use restrictions or other existing covenants, or it could be a hidden risk. To name only a few of these:

fraud or forgery in previous documents
improperly executed deeds
improperly filed liens and mortgages
undisclosed heirs or others having a claim to the title

The list could go on and on. Owners title insurance eliminates the risk of loss to you through claims against the title as insured in your policy. The underwriter assumes all legal expenses involved in adjudicating claims and protects you against any loss whatever arising from claims affecting your title, even though they may occur though errors made in the public records.

Part of receiving a Title Insurance Policy is a title search is a detailed examination of the historical records concerning a property. These records include:

deeds
court records
property and name indexes

The purpose of the search is to verify the seller's right to transfer ownership and to discover any claims, defects; or other rights or burdens on the property.

Title insurance is your policy of protection against foreseeable or unforeseeable claims against your home. Title Insurance plays a major role in making certain home ownership is safe and secure.

Remember, there is only ONE PREMIUM to pay at the time of the issuance of the policy and there is no further premium or renewal to be paid for as long as you or your heirs have an interest in the property.

I hope you find this information, in part supplied by North American Title Company, helpful

Best regards
Brian L. A. Wess
Realtor®, Broker Owner
CRS, CDPE, GRI, ABR, ASR, CSR, CNS, SFR, e-PRO
Military Relocation, Residential & Investment Specialist
Infinite Horizons Realty - Metro Brokers
Colorado Springs, CO
Direct: 719-528-6672
Web: BrianWess.com
COLORADO REAL ESTATE...DONE RIGHT!â„¢
3 votes Thank Flag Link Mon Sep 16, 2013
Thanks so much!! Very much appreciate it!
2 votes Thank Flag Link Mon Sep 16, 2013
Any time :)
Flag Thu Sep 26, 2013
My Pleasure :o)
Flag Wed Sep 18, 2013
Your so very welcome!
Flag Mon Sep 16, 2013
Yes it is important to have Owners Title Insurance. This is your assurance the property you plan to purchase is protected against liens, etc. Check with title companies in your area and find the best rates for title insurance.
2 votes Thank Flag Link Mon Sep 16, 2013
To say it's worth it, is an understatement. It's needed as often as you buy or sell a home. Don't skip it!


Leigh-Jo
Syan Real Estate
Call/Text: (505) 730-8181
FREE Listing Alerts: http://www.syan.com/alerts
Web Reference: http://www.syan.com
1 vote Thank Flag Link Mon Sep 16, 2013
Very worth it~in the rare instance an problem turns up on the house title (liens, encumbrances, easements, etc. ), this insurance will provide you with major relief. All sales transactions with houses carry title insurance so it is a very common and worthy expenditure. Many of us have the love/hate with insurance. We pay, pay, pay and lots of times, never uses (cars, etc.) However, it's in that rare instance, one needs it and it's there. This is a must! Never, ever hesitate on this one. Call me if I can further assist.
Esther Bergling
Keller Williams Partners
719-439-1359
1 vote Thank Flag Link Mon Sep 16, 2013
You definitely want Title Insurance and also ask for Owners Extended Coverage which is typically @$65 extra but well worth it. Your Realtor or lender or title company can better explain what the OEC is but it basically covers you from the time the commitment is received to the time you close. You want clear title when you buy and this will insure that you get it.
0 votes Thank Flag Link Thu Sep 26, 2013
As others have said, Title Insurance is essential... AND it's paid by the SELLER not the buyer!!! Your loan officer should have explained that. They have to disclose all closing costs, regardless of who pays for what.

The seller typically picks the title company and pays for it. If you insist, you can pick your own title company and pay for it yourself, but that's not very common. Good luck to you!
0 votes Thank Flag Link Tue Sep 17, 2013
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