Owner's Title Ins. Premium (incentive, fees, insurance, construction)

[lorenzo887]

Hi all.

Im selling my house and was told I have to pay Owner's Title Ins. Premium .

Im also buying new house and financing only one small portion of it (50k).

But in GFE I see I will be paying for Owner's Title Ins. Premium even when buying my home .

I thought it is seller fee.

Does it seam right paying for it 2 times , one time as seller and second time as buyer.

That fee is almost 1700 $ !

[FIREin2016]

You do not pay it as a seller. It is insurance for the buyer. Unless you are going to finance it (Seller financing), you do not need it.

I do not think you need it as a seller even if you finance it. A bank would make the buyer take it out though.

[Silverfall]

Who pays for it depends on what is customary for the state and it is negotiated in your purchase agreement.

In Oregon, it is customary for the seller to pay the owner's title policy and the buyer pays the lender's title policy. Other states buyer pays all.

[Rakin]

Originally Posted by Silverfall

In Oregon, it is customary for the seller to pay the owner's title policy and the buyer pays the lender's title policy. .

This is standard in Texas also. OP they charge you as a buyer then credit the amount back on page 1. It can be confusing.

[Merjolie8]

In NH, buyer pays for both the owner's and the lender's.

[cully]

So you understand about title insurance since you mention that one small portion.

This insures the lender is someone lied and said they were the other party and signed papers.

This insures the buyer/new owner in the same way.

Otherwise, you could lose it all.

All lenders I know of insist on this protection for themselves.

At least some places don't require a person to protect himself with insurance if he doesn't want to. But it's best to do so.

[nissan]

In new construction, often the builder won't cover the title insurance, so I'm assuming you're buying a new construction? In TX, the builders we looked at all told us that was the case. Though, if you use the builder's mtg co, they usually have some incentives which include crediting title ins.

[SmartMoney]

Originally Posted by nissan

In new construction, often the builder won't cover the title insurance, so I'm assuming you're buying a new construction? In TX, the builders we looked at all told us that was the case. Though, if you use the builder's mtg co, they usually have some incentives which include crediting title ins.

It sounds like this is exactly what happened. Read both contracts. I can promise the OP the odds are both contracts address who pays these fees. Unfortunately, you would not have known to look up title insurance.