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There are 2 title insurance binders. If there is a loan you are required to have it on the mortgage. There is a second title insurance binder that you have the ability to accept or decline. Perhaps the second is what you are thinking of since it's required on the mortgage?
That's right and from the OP's original post, he is asking if it's necessary to have it. It doesnt' appear as if he's talking about the one that is required on the loan since he would have no choice for that but rather the additional binder that you may or may not take.
I was asking that was the post that I have mentioned is the correct we don't have to deal in with the company as the owner does it all for us in order to issue a Title Insurance by the name of new owner that is we who are purchasing the house.
Friends I got this thread link after a long time one of the forum gave it to me.I have problem related to title insurance.I want to know is it necessary to have a title insurance ? and what are the risks that are covered under this insurance?
DEFINITELY get title insurance. We purchased a new construction home from Neumann homes last Sept. A month later, Neumann homes filed for bankruptcy. We then started getting lien notices filed by the contractors who worked on our home and were never paid by Neumann. We ended up with over $90K in liens, and would have been responsible for these liens had we not had our title insurance. It's one of those fees that you don't really think much about until you need it.
Another junk insurance fee to cover someone not doing their job. If the title was properly inspected and certified at closing, as is done in other countries, there would be no need to take out insurance against some future problem. It is a USA thing that IMHO is a total rip off.
Title insurance is necessary because errors that people will make (because no one is perfect) and the lengthy process involved when their needs to be a lien placed on title; not because someone does not "do their job". Especially when property changes hands quickly (when the owner "flips" the property) or when the property was part of an estate (who rightfully holds title) can cause grey areas.
Similar insurance products are in fact available in other countries. However, other usually hold tighter control over lending and real estate title issues (whereas here we have 50 states, the laws of local municipalities, and G-d knows how many lenders....and they all have to come together for a property transaction). Being that we hate tight government control so much, we need title insurance (and other insurance products) so that we don't end up financially devastated.
Title insurance is necessary because errors that people will make (because no one is perfect) and the lengthy process involved when their needs to be a lien placed on title; not because someone does not "do their job". Especially when property changes hands quickly (when the owner "flips" the property) or when the property was part of an estate (who rightfully holds title) can cause grey areas.
Similar insurance products are in fact available in other countries. However, other usually hold tighter control over lending and real estate title issues (whereas here we have 50 states, the laws of local municipalities, and G-d knows how many lenders....and they all have to come together for a property transaction). Being that we hate tight government control so much, we need title insurance (and other insurance products) so that we don't end up financially devastated.
Uh right, so how would you say that "people make errors" doesn't equate with "people not doing their job"? Maybe it would be better if the people who were paid to convey title took insurance to cover their mistakes, hmm that's an idea! Also the fact that changes are done quickly should not equate with things done wrongly. Estate laws should have no bearing, that’s what probate is for.
So products might be available for other countries, probably ones where titling and deeding practices are not up to professional standards. I have bought and sold property in much of Europe (UK 3x, France once and Germany once) and the notion of some added insurance to cover for some unforeseen future problem just wasn't an option. It was done right the first time. Oh and some of the original deeds on the land of one of my houses in the UK went back to 1749, so far without problems.
I do not understand what government control has to do with any of this.
Again, if it was done properly from the get go, this junk fee would be history. It is an expensive, unnecessary hidden fee that is just another in a long line of junk fees the 'industry' perpetuates and is part of the reason why people have over-extended themselves.
I guess your defense of these fees stems from some professional association, or as a personal home buyer/seller do you think they are a good idea? Just curious….
The title company checks for liens and doesn't find any. You buy the house with a clear title.
The builder dies in a car accident on January 15th.
The last 30 days worth of work done on the house hasn't even been billed yet to the builder. All those subcontractors place liens against your house for payment.
Now tell me, who didn't do their job in that scenario? Who made a mistake? No One!
Oh and some of the original deeds on the land of one of my houses in the UK went back to 1749, so far without problems
Who do you think exams the chain going back to 1749 to determine there were no problems? and how much do you think they should get paid for it? what if there was a fradulant deed in there somewhere? What if there was a death 45 years ago and there was a heir no one knew about? who should defend the current owner?
who should be responsible for ANY of the countless titles issues that come up every day? the owner? title insurance is NOT that expensive in most states. it is a one time fee that protects you for the lifetime of your ownership against claims that come up from prior issues- even bogus claims.
I guess getting a survey is a junk fee too. i mean, that fence has been there for 15 years so it must be right!
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