NLIC.org

Misty Said:

Why do we need title insurance when the constitution has the Contract Clause?

We Answered:

Look at it this way,

Better to be safe, than sorry.

Floyd Said:

Do I need to get title insurance on a piece of land I just purchased?

We Answered:

Do you need to? No. The question should either do I have or do I want to? If you financing this proeprty the lender may require you to do so to protect their interest.(of course you'll need carry PMI if your down payment is less then 20%) If you bought out right in cash then it is 100% up to you. Title insurance is unlike any other insurance in a sense that it is retrospective, meaning it protects you from previous events that may affect your land. If you bought a brand new piece of property, meaning no one else owned it before, you bought it off from the developer, you may not be out of the dark just yet. The developer may own taxes and have liens on the land that you do not know about and it might come back to hunt you. After you sign you'll own any tax or liens that pops up. Just b/c nothing came up yet dosen't mean it will. You can have a real estate do a chain of title or a title abstact to avoid title insurance. Hope this helps.

Darrell Said:

We just paid off our land note and asked the same bank to finance a new home. Why a title policy?

We Answered:

I don't mean to insult or hurt you. If I did, please forgive and excuse me.. A very basic question: IF you didn't need or want that money, you wouldn't ask for it, would you?

The bank or any reputable lender wants to protect their investment in your land to and through you. They want to make absolutely sure:
1] Someone else, representing and pretending to be you, represented they are and were the legal owner of your property. AND THEY got money they know darn right well they shouldn't have - leaving a lender AND quite possibly YOU "holding the bag". "Identity theft" is a very common occurrence these days, isn't it?
2] In the event they have to foreclose, they want to make absolutely certain they are the first in line by being the 1st Mortgagor or the first lien holder.
3] You, the Land Owner, didn't pledge that ground for a friend or relative who may have been in trouble with the law AND you, as Mr./Ms. Nice Person, put that land up as collateral - to make sure the person you are/were helping will appear before the Court on the appointed day and time.

Many, many times fraud is committed by one or more of the parties:
1] Lying - this is why an affidavit is prepared and notarized.
2] Pretending to be someone else who they absolutely know they aren't; ditto
3] and/or Actually forging names to documents.
and other reasons - probably too many to mention here [and no sense giving any unscrupulous people or anyone else any more ideas, is there?].

The lender wants to make sure you didn't sign for any other personal property or real property and put up the ground you own - free and clear - as additional collateral.

Its not a huge cost, is it? As a matter of fact, it’s a small price to pay for your own peace-of-mind, isn’t it? In many instances you may be able to incorporate that title insurance policy as part of your loan.

If you feel you're being ripped-off, you can shop the loan at other lending institutions:
A) to see what they have for fees and
B) how much those fees are &&&&
C) what ELSE they may require of you for that loan.

In Pennsylvania, where I live and practiced real estate, there is a "re-issue rate" for title insurance.
Perhaps your state or country has a similar situation for "re-fis" [re-financed properties] and construction loans.

Its worth looking in to, isn't it?

I wish you well.
Our Family Slogan: "Every Good Wish to You and Yours!" I wish you, your family and your friends nothing but the absolute best of everything life has to offer.

Very Truly Yours,
Ron Berue

Danielle Said:

Do I need Owner's title insurance in a new construction home?

We Answered:

Abosultely, the following web link will provide you with some information about a local builder and the situation that the homebuyers who didn't buy title insurance found themselves in. Basically many lost their homes.

Start with the last article dated April 25, it should give you the basic information.

http://www.kypost.com/news/erpenbeck.htm…

Clayton Said:

Checking if I have Title Insurance on my property?

We Answered:

Look on your "HUD" also known as "Closing Statement"
In the 1100 section under Title Insurance, if there is a charge for an Owners Policy, then you have title insurance.

If you see a charge, contact the closing agent listed on the front page of the HUD and request a copy of this policy.