Title Insurance on New Home (price, construction, contractors, developer)

[Panda_Puck]

Hey All,

I am buying my first home in Houston,TX. A brand new construction (in a new subdivision) and paying 100% cash for it.
Do i need to buy title insurance? The builder gave me a quote of about 2K.


Thanks,

[lancers]

Originally Posted by Panda_Puck

Hey All,

I am buying my first home in Houston,TX. A brand new construction (in a new subdivision) and paying 100% cash for it.
Do i need to buy title insurance? The builder gave me a quote of about 2K.


Thanks,

I've only paid about $500 every time I have purchased a home and never in Texas sorry can't help beyond that.

[I love boots.]

Originally Posted by Panda_Puck

Hey All,

I am buying my first home in Houston,TX. A brand new construction (in a new subdivision) and paying 100% cash for it.
Do i need to buy title insurance? The builder gave me a quote of about 2K.


Thanks,

It is the only way to insure a clear title. New construction or not.

[Panda_Puck]

Thanks "I Love Boots"
But since this is a new subdivision and the houses are all new, won't the builder and developer already know if the title is clear or not?
If there is anything wrong with the title, will they even build the house there?

Thanks,

[Silverfall]

Originally Posted by Panda_Puck

Thanks "I Love Boots"
But since this is a new subdivision and the houses are all new, won't the builder and developer already know if the title is clear or not?
If there is anything wrong with the title, will they even build the house there?

Thanks,

You would likely want early issue title insurance. Out here contractors have 90 days to place construction liens on homes. So if the builder doesn't pay them, they place a lien on the house and you pay them. Early issue protects you from that.

[oregonwoodsmoke]

Yes, you need title insurance. There is no guarantee that your builder finished paying for the land or that he paid his subcontractors.

I suggest you shop around a bit. The price quoted seems a bit high to me.

[I love boots.]

Originally Posted by Panda_Puck

Thanks "I Love Boots"
But since this is a new subdivision and the houses are all new, won't the builder and developer already know if the title is clear or not?
If there is anything wrong with the title, will they even build the house there?

Thanks,

Stranger things have happened.

[FalconheadWest]

Title insurance in Texas is regulated so there is absolutely no reason to "shop around" for a better price.

The title insurance will ensure the builder paid all the subcontractors and if a lien appears on your title after you close, you're protected.

[jackmichigan]

It's especially important to get title insurance on a new house. In Michigan, it's almost always paid for by the Seller. I'm not sure what is customary in Texas...but, regardless, if you're already locked into a contract it's best that you pony up and pay for it.

[SmartMoney]

Definitely get it. Would you put $250,000 in a bank without FDIC insurance? Mail a box of iPhones across country without insurance? Without someone insuring what they examine (and you purchase), there's no reason to be diligent.....but if they are putting their John Hancock on the title policy, you better believe they checked things twice, their rear is on the line. There's just too many things that could float to the top (in the way of liens). Do it, you never need it again, even when you do a cash out refi 2 years from now. You'll need lender's coverage, but your owners will always be there for you.