NLIC.org

Bonnie Said:

how to check deed(land title), and how title insurance works?

We Answered:

The title company checks it and it is them that issue the insurance. The insurance covers you if they missed something, they also defend your title if someone takes you to court over a title issue.

The costs will vary by state, size of land and the type of zoning.

Dianne Said:

Homeowners Title Insurance/Costs Standard?

We Answered:

Address the "tips":

1."The choice of which title insurance company to select is yours, so contact more than one title insurance company to compare costs. " - This is true, however in most states, the cost of the insurance is set, the only thing to negotiate is prep-fees, searcher fees and other extras added by the title company.

2."If the property you are purchasing has been re-sold in the last 5 years check to see if the title insurance company will offer you a discounted rate. " - Almost true - if your doing a refinancing within 5 years, there is a reissue rate for the owners policy. Does not apply for new purchases.

3."Are you a first-time home buyer? Then you may be eligible for an additional discount. "- Never heard of this.

4."See if the property insurance company you are selecting offers title insurance in order to get a better rate." - Never heard of this, this is really apples and oranges, P&C is a different animal and unrelated to title insurance. Besides, the title underwriting companies are different entities than the P&C insurance companies - why would you get a discount? This would violate most states insurance laws concerning discounting.

5."As the property buyer, your title insurance should be for the full purchase price of the property." - True, you could try to get by for the financed amount, but may as well pay the full thing.

Bobby Said:

when buying a house in new york do you really need title insurance?

We Answered:

There are usually two policies of title insurance on a property. Most places I have worked it is traditional for the seller to pay for the buyer's policy of title insurance (the owner's policy) which protects against defects in your title. And people really do use it. More than most people think. I ran down a checklist of 100 items or so that title insurance protects against, and I had encountered people who had problems with over two thirds of the items.

But your owner's policy does not protect the lender from loss due to title defects, so the lender will require you to buy them a lender's policy of title insurance, and that's what the $700 is probably for. You don't pay it, you don't get a loan. You're actually getting a discount for buying it concurrently with that policy of owner's title insurance your seller is buying you.

Wayne Said:

When should I recieve the final closing costs from Title Company?

We Answered:

Estimates are usually pretty accurate. A lot of complications can bollix up a real estate closing, but try not to think about it.

(I know; I've gone through 2 in the last 3 years.)

Although no transaction is set in stone until escrow closes, the fact that you are this close to the closing date is a good thing. Keep thinking positively and try to relax.

Amy Said:

Is title insurance a good thing to have on your house or is it just a waste of money?

We Answered:

It is mostly a waste of money but all of the realtors and "purists" will tell you it is necessary. It is a big profit item for the broker or the insurance company because it is RARE that anything is ever paid out. If you buy it, make darn sure that the policy is actually issued to you and make sure that policy is in your possession. Many sellers collect your premium and then simply say that you are covered and some even issue a "binder" that says you are covered. Don't fall for that. The fact is all too often they never send the premium in and no insurance is ever purchased.

It is priced per thousand of value of the real estate. Many people do not know that the price can be negotiated the same as a car. If you are buying, When you draw up the offer to purchase ask that the seller pay for the title insurance.

Louise Said:

How much does home owner's title insurance generally cost?

We Answered:

It's based on the amount financed and will vary with each loan and each attorney.

A real estate attorney's paralegal can easily quote you.