Tuesday, April 17, 2012

Title Insurance

I have been thinking about getting title insurance for the lot.  I was just curious if others had gotten this or not.  It is pretty expensive from what I have seen at $1K to $1.5K.

5 comments:

  1. From what I hear it depends on how much equity you start with. The sellers title insurance is mandatory and covers full price minus your initial downpayment. It I was putting more than 30% down I would consider it. Not otherwise for me. The land should have pretty simple title. Developer to you.

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  2. I have no knowledge on the subject. What exactly would the insurance be for?

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  3. It's not necessary unless the land you are building on has changed hands several times. You can do a preliminary check of the county records for your lot and see what turns up. If there is anything concerning or excessive land transfers, title insurance may be a good precaution. I'm not sure what jurisdiction you are in...but I would be happy to point you in the right direction.

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  4. Is this something that could be mandatory in some areas? I was under the impression that we did not have a choice in the matter, but maybe that is a state/county/township regulation? Please steer me in the right direction if I am mis-informed! Thanks!

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  5. I could be wrong with the title insurance that NVR gets, but I think that it may only protect them (like I say, could be mistaken). Having owners title insurance protects you against any claims (mainly on the land for new builds). Believe me, I don't want to spend the extra cash for nothing, but of course it would be for one of those disaster type of scenarios.

    I will have to think about it here more.

    I know you are actively looking out there Mike, did you happen to see who NVR purchased the land from?

    Thanks Mommy Esq., I have been looking around on the county site to try and get some of the history.

    Good link on this from Clark Howard:
    http://www.clarkhoward.com/news/clark-howard/homes-real-estate/buy-owners-title-insurance-necessary-when-refinanc/nFpK/

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