Title insurance

Saving & investing, frugality & simple living. They're all part of the wealth equation.
Here's the place to discuss getting (and keeping!) your money.

Moderator: lvergon

Shaun
Posts: 189
Joined: Fri Dec 14, 2007 6:45 pm
Contact:

Title insurance

Postby Shaun » Wed Aug 22, 2012 8:46 am

I am building a new house in a subdivision. Is it necessary for me to pay $1000 for an owners title insurance policy?
Shaun

Bichon Frise
Posts: 1106
Joined: Fri May 04, 2012 2:23 pm
Contact:

Re: Title insurance

Postby Bichon Frise » Wed Aug 22, 2012 8:56 am

how would things play out if someone made claim to the land that the house you built was on?
Bichon Frise

"If you only have 1 year to live, move to Penn...as it will seem like an eternity."

avocado wrote:Good to see you back, I was starting to miss your incisive commentary!

Shaun
Posts: 189
Joined: Fri Dec 14, 2007 6:45 pm
Contact:

Re: Title insurance

Postby Shaun » Wed Aug 22, 2012 9:00 am

I guess that it's the kind of thing I am asking about?? The subdivision has been around for six or seven years if that makes a difference.
Shaun

Bichon Frise
Posts: 1106
Joined: Fri May 04, 2012 2:23 pm
Contact:

Re: Title insurance

Postby Bichon Frise » Wed Aug 22, 2012 10:22 am

I dunno. I just work with this type of thing. We're currently selling some acreage for mineral/mining rights and we have close to $2 million worth of title which can't be resolved. Albeit, that can be more complex than surface.

Then there is, $1000 being anywhere from 0.3% to 1% of your total investment.

And, doesn't the buyer usually pay for title insurance for the loan and the seller buy title insurance for the buyer? I may be a little mixed up on that....
Bichon Frise

"If you only have 1 year to live, move to Penn...as it will seem like an eternity."

avocado wrote:Good to see you back, I was starting to miss your incisive commentary!

DoingHomework
Moderator
Posts: 5606
Joined: Wed Sep 23, 2009 9:01 am
Contact:

Re: Title insurance

Postby DoingHomework » Wed Aug 22, 2012 11:18 am

Shaun wrote:I guess that it's the kind of thing I am asking about?? The subdivision has been around for six or seven years if that makes a difference.


What if the contractor who built the subdivision failed to pay the guy who did the grading? I would think you want to be protected. If your really want to save the $1000 then I strongly advise you to verify yourself that there are no liens by spending time at the county records office yourself. Your might also want to take a few real estate law courses first so that you are sure you know what you are looking at.

If I recall you are in Louisiana, right? Make sure you understand how land disputes are handled under civil law and the Napoleanic Code rather than how things are done in the other 49 states.

stannius
Posts: 1680
Joined: Fri Sep 12, 2008 12:29 pm
Location: Seattle, WA
Contact:

Re: Title insurance

Postby stannius » Wed Aug 22, 2012 11:56 am

DoingHomework wrote:Yes.


FTFY

bpgui
Posts: 1173
Joined: Mon Feb 07, 2011 6:33 pm
Location: Illinois
Contact:

Re: Title insurance

Postby bpgui » Wed Aug 22, 2012 4:11 pm

DoingHomework wrote:
Shaun wrote:I guess that it's the kind of thing I am asking about?? The subdivision has been around for six or seven years if that makes a difference.


What if the contractor who built the subdivision failed to pay the guy who did the grading? I would think you want to be protected. If your really want to save the $1000 then I strongly advise you to verify yourself that there are no liens by spending time at the county records office yourself. Your might also want to take a few real estate law courses first so that you are sure you know what you are looking at.

If I recall you are in Louisiana, right? Make sure you understand how land disputes are handled under civil law and the Napoleanic Code rather than how things are done in the other 49 states.

It is probably worth it. I'm not sure about Louisiana, but in many states contractors and subcontractors can file a lien several months after work is completed.... i.e. after you're closed on the purchase. In DH's example, you are on the hook for the lien, and essentially have to pay for that portion of the work twice. Sure, you can sue the contractor, but if he isn't paying the subs, you're probably not collecting from him either. He's already spent it all and will be filing for bankruptcy.

Unfortunately, that scenario is fairly common. The title companies don't want to lose money, so the good ones will make sure they have lien waivers from everyone before closing.


Return to “Personal Finance”

Who is online

Users browsing this forum: Google [Bot]