Is Title Insurance Worth It When Buying A House?
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- Опубликовано: 12 июл 2019
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As a commercial title examiner, it was great to see this kind of video. People honestly have no idea what I do when I tell them about my job and they have no idea just how many issues, even simple ones, can arise from doing a simple title search.
Title insurance is a must. It’s like going through a title with a fine tooth comb. Best analogy I’ve heard.
Yes. When I paid cash for my house, I definitely got it.
Short answer: Yes
Long Answer: YEEEEEEEEEEEEEEES!
My friend's dad had this and it covered a situation where the legal description on the deed was wrong and the buyer found out when he had his surveyor look at the property.
My agent JUST explained to me what this was 30 mins ago. Talk about convenient video timing.
Google or Apple are always listening
Thank you for clearing this up!
A friend of my moms bought a foreclosure and boom, three years later she gets sued by a bank for it. Thankfully she had a title insurance policy.
J. Smart following
J. Smart I believe it was a lender for a HELOC that didn’t settle out with the primary mortgage company during the foreclosure but I’ll have to ask to be sure. Paperwork still gets shuffled, especially with the larger vendors.
J B did the title insurance company still manage to straighten everything out for y’all?
Katelyn Capps yes, the title insurance company paid the damages.
J B I find it so weird that they’d go after you and not the person who foreclosed being it was in their name
Thank you Dave for the clear understanding! 😊
Great information!!!
That $50 buck policy in Kentucky is going to be $1500 with my next residential transaction, in addition to the $619 for the lenders policy. Where do you get an owner’s policy for $50?
Thank you Dave!!!
Its also the lawyers job to check the title and ensure its transferable
I've always felt that title insurance was a scam because I am already paying the title company to do a search. But they way you explain it Dave, it makes sense. Great video!
It's still a waste... Dave has become another schill with corporate sponsors
From my understanding as well. The search is ran before closing. It seems he is talking about a TITLE SEARCH and not TITLE INSURANCE or maybe both merged together. A little confusing.
All three of you are ignorant. I assume you are all attorneys and title litigators. Good luck.
@@SD-pi9co Absolutely right. I guarantee you someone is paying him to shill for the title insurance companies.
@@emersonneverstop7562 Exactly. Doing a title search is necessary. You want to verify you are buying it from the correct owner, no liens, etc... but the title insurance, which is most of the cost, is there to do the same job. Basically insuring the person doing the search and exam did not screw up. if it were $100 for insurance, ok, fair enough. They are often charging $1500-$2000
Just bought a house past Wednesday! Paid title insurance for only$600!!! It's a no brainier!!!
How much did you pay for your home ? In my case, they are asking $ 1300 for that piece of paper......
Don’t feel bad, I paid 1500 for mine.
I am having that same problem right now and have to call up my title insurance company.
Thank you Dave!
Thanks Dave! Quick question with a direct, reliable answer.
I learned about this from his Financial Peace class. It was as right on time for my refinancing.
Thanks Dave!
*Very informative video I've never heard of title insurance* 💪
SAME. But when u think about Dave's explanation for it-
"Its an insurance. And insurance is a way to fix broken things with money." It all makes sense bc one person's mistake/negligence can cost alot of $$$
I'd never heard of title insurance until I was paying the closing costs for my house. It was a pretty good chunk of change and I was required to have it even though I had a relatively small mortgage compared to the total cost of the house. After reading some of the comments here, I'm glad I have it.
New construction ?
Thanks for the info bud.
New to me, thank you
I had one where apparently previous owner husband had an affair forty years ago. Half sibling entered picture....had been sold twice in the meantime. It all ended up working out, but took a month of stress.
For the cost, it's silly not to use the title insurance. People can make mistakes when researching liens etc.
Agreed, for the cost you could end up saving yourself tens of thousands of dollars and/or the loss of your entire property worst case scenario
Isn't that why you pay a lawyer to close for you tho?
Chris Invests - Personal Finance Videos
I learned about this and how to prequalify for mortgage with zero credit at the library in early 90s reading several books on buying a first time home.
Some books had examples of what happens without title insurance.
Had cash saved up title insurance,fees,down payment,homestead,emergency fund,etc.. before even looking for my first home.
If I bought title insurance at the time that I purchased my home but then refinance a few years later do I need to buy a new title insurance policy?
I didnt even know this existed... great explanation!
Important to note you still need lender title insurance even if your refinancing with the same lender or it's your first mortgage for the property. He is mostly talking about owners title insurance, which is only necessary if you are buying a property initially.
Thank you!!!
Every Title Processor every where
"Get title insurance. Period!!" Maybe except if you are wholesaling, then you make you end buyer pay for it. Don't be cheap on this. Simply not worth the risk of not having it.
Im not sure if I have it, would I call the bank I have a mortgage with? Thanks
Spot on!
Do you think we can get rid of it after a certain time?
My Title Insurance was $200 at Alabama, but I didn't get loans. I saved money and used a Cashiers Check through a Title Insurance company. I received a copy of a Warranty Deed. Then I went to the tax Commision office to have my deed recorded.
From a title searcher out of Athens Tennessee thank you Dave. I see this all the time where people don’t want title insurance on family deals that are cash or owner financing and I want to pull my hair out
How to shop for title insurance?
What kind of insurances do I need when I have a mortgage?
Question: I keep seeing ads for services claiming to protect people from home title fraud or deed theft. Is this even a prevalent problem? Is there an easy way for me to confirm that my title is clean rather than paying for a service?
Answer: In 2008, the FBI identified “house stealing” as the “latest scam on the block.” Since then, it has popped up periodically in cities such as Chicago, Dallas, Detroit, Los Angeles, New York City and Philadelphia. Is it a growing problem? That’s hard to know because the FBI doesn’t break it out separately in its crime statistics. The American Land Title Association doesn’t have data on the problem, either. “I suspect that companies that offer title-monitoring service use that [the claim] as a marketing strategy,” says Jeremy Yohe, vice president of communications at the association.
13 Tax Breaks for Homeowners and Home Buyers
The scheme works like this: Fraudsters pick out a house-often a second home, rental, vacation home or vacant house-to “steal.” Using personal information gleaned from the internet or elsewhere, they assume your identity or claim to represent you. Armed with forged signatures and fake IDs, they file paperwork with the county’s register of deeds to transfer ownership of your property to themselves or a third party. They then sell the home or borrow against it, stealing your equity. When they fail to make payments on a loan secured by your property, you could end up in foreclosure or be unable to sell, refinance or pass the home on to heirs.
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Home Title Lock is one of the services that says it will monitor your home’s deed 24/7 to prevent title fraud; it costs $15 a month ($150 annually, two years for $298). But you can protect yourself-for free-by periodically checking your property record on the website of your county’s register of deeds. Look for deeds that you or your attorney didn’t prepare or sign, or loans you didn’t take out, as well as liens of contractors, subcontractors, real estate brokers or attorneys whose services you didn’t hire, or court filings, says the Cook County (Chicago) recorder of deeds.
Even better, many counties now provide a consumer notification service. Register for free, and you’ll quickly receive an e-mail or text any time a document is recorded on your property.
The New York City department of finance advises homeowners to make sure the appropriate authorities have the correct mailing address for you or the person who should receive notices about your property. In your absence from your home, have mail forwarded or ask someone you trust to pick up mail or visit your home. Visit a vacant house periodically to ensure that no one has taken up residence illegally.
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You may get clues when title fraud occurs: You stop receiving your water bill or property tax assessment or bill, for example. Utility bills on a vacant property rise suddenly, or you find people living there. You stop receiving your tenants’ rent payments and learn that they’ve been making the payments to another person and location. You receive payment books or other information from a lender with whom you haven’t done business. Or you find yourself in default on a loan or notified of foreclosure proceedings.
How to Spot a Scam: Here are 3 I Dodged
If you experience or find something amiss, notify the register of deeds and local law enforcement. In New York City, for example, homeowners who think they are victims of deed fraud are urged to act quickly to report fraud to the city’s sheriff, get a certified copy of the fraudulent document from the city register’s office, report the crime to the district attorney’s office in the borough where the property is located, and consult an attorney to help confirm ownership of the property. (Legal action known as “quieting the title” may be required to resolve any questions about your ownership of the property.)
Thank you so much Dave you answer my question now I’m off to tell them I want title insurance.
Glad to know I made the right decision in getting title insurance on my new property!
Should you get title insurance on small purchases, say around 25k? It’s the same price as insurance on 250k property.
Never heard of it but now going to google it and get it. Thanks Dave
If you own a place right now you may not be able to purchase it. Typically it's purchased prior to you taking possession of a new property
@@goughbrandon ah ok. Maybe I already have it. I will check. Thanks Brandon
Is title insurance a 1 time purchase or a renewing thing like auto insurance?
It is a one time fee paid at closing when you buy a house.
do you renew it every year or it is one time deal ?
Do you have to pay for title insurance every month? I've never heard of such a thing.
No, it is paid at closing.
Richard Forester how much roughly?
@@yourmanzach2307 Title fees vary but I just recently sold a house and paid about $2500. This was on a house in the Seattle area.
The insurance is necessary, but how do consumers know if we're being ripped off on the fees?
The Title Insurance Underwriters are required to file their rates with the state insurance administration.
Is title insurance a one-time fee? Or built into your monthly payment?
It's usually a one time payment.
I was just told it can only be bought at time of closing
So do it need it when refinancing?
Do your own search and file a p proper land claim. No one files a proper land claim anymore because of the reliance on title insurance.
Ryan M. Dupée
I do have homestead exemption on my condos if that's what you mean.
Need help. Year ago I purchased a lot legally. Today I found out that someone else bought the same property but two years ago. The tittle company issued a tittle to me and the other party that bought it two years ago. Now the first party found out about it and wants her lot back. The problem is that I have already build a house that is still under construction. Please any advice of how to handle this matter will be very appreciated. Need to know if it’s best to go ahead and get an attorney or let the tittle company fix the problem. Thank you.
Did you buy title insurance?
David Novak yes sir I did buy the tittle insurance. That covers the lot and not what I have spend on building the house. I have hired an attorney that will be on a contingency plan and it falls under the DPTA lawsuit. Seller committed fraud and tittle company failed to check and see if the tittle was clear.
So one thing he is saying is that if you have paid off your mortgage, there is most likely no title insurance on the property. It went away with the mortgage. I don't even recall ever being asked if I wanted my own policy when buying property...
No, the title insurance remains. You'd have to look at your paperwork, but the title company you used when buying your home provides the insurance. This has nothing to do with the mortgage, other than the fact that the mortgage company requires you to get title insurance (just like they required you to get a home inspection.)
Years ago when I bought my property the title insurance company found a problem. The owner had sign over the title to a brother in law for collateral for a loan and he sign it back to her when she paid him. Well some one with his extract name had a judgement against them. The title insurance company made the in-law with his lawyer fill out and file the papers at the court house that he was not that person with the judgement. I paid a couple of hundred dollars for this insurance. Can you imagine straitening this out now 40 years later if I want to sell ?
Stephen Cullum this happens quite often especially with common names
Same question, but for Gap Endorsement.
Great advice but the the Owner's title insurance isn't $50 as a simultaneous policy. It may have a discount of $50, but it's more like $600 or $700 on average. unless I am misunderstanding you.
If someone steals my home title and gets a loan against it...it would be the loan company that would be the one scammed not me...just because the loan company did not do a perfect identity check of the true ownership of the deed, title etc.
Is it still recommended if the home is new constuction?
The land that the house on it might have problem
is this equivalent to signing pink slip for a car you just bought?
What if your buying land or a house through a sheriff sale foreclosure
You still want both title search and insurance. This is critical, please don't skip just to save a few dollars.
This guy is endorsed by the title insurance.
I just don't agree on paying for the Title Insurance if the home your buying currently has Title Insurance and you have the seller call and confirm and provide a written confirmation signed and dated from the Title insurance company. Otherwise, your paying a company to look up a verified clean title again for no reason. The title company will have on record how many years back, most do 60 years, history search on file. Get a copy of that and your good to go. It's 3,000 dollars you can save in my opinion.
It CNN is America. You are robbed by many so called “legal things”.
Lender title insurance buyer title insurance, closing fee is not cheap. Even you pay your house off. You still own nothing. Property tax again is a legal thief. A heavy debt put on our shoulder for life.
Now This Makes the most sense ..Thanks !
I didn’t know this wow
How does someone submit a question to Dave ? or who do I call ?
motherlove 1-888-825-5225
What’s your question?
@@Werdna12345 I have an intense backstory... SAM of 15 years and a 4 X BC survivor..Divorced and left penniless with 2 kids at 58 y/o. I have a few dollars put aside but I'm 65... where do I invest at my age.... ? No one will advise me.....
How do I know if I have it? Is it in the mortgage documents? Was it paid at closing?
Nic E
You're suppose to know this if you bought a home.
Should be with your documents if you did purchase the insurance.
If you got a loan on the house then you have Title Insurance. A lender would never allow you to buy a home without it, because if there is a problem with title they will be affected. If you don't have a loan on the house, then you can ask your Escrow Company if they purchased the insurance, and if you're in a state where they don't do escrow then you can check with the attorneys.
Lynn V
People need to check that they have owner's title insurance.
Some get it confused with lender's title insurance.
Should have been in the disclosures.
@@blackworldtraveler3711 this is true, they're not the same. I work in real estate and so I always make sure that both policies are purchased. But I suppose for some people it could slip through the cracks.
PERIODT!!!!!!!!!
Illinois lender title insured $1,700.00
Owner title insurance $1,890.00
Is not cheap at all bcz buyer pay for plus downpayment and many other feeeeesssssssssssssssssssss I think is very cheap pay for a tent and sleep on sidewalk
Just saw another video from you and you say no.. is not necessary we must have a trust better what will be the best answer? yes or no
Only had to listen to 20 seconds of this. I do title litigation, I thought, for some reason, you would say not to buy it… I clicked this to ream you a new one, but, never mind 😊
What if it's a brand new home ? no previous owners ?
How about refinance ?
Me and my mother had a house in both our names I didnt signed the title when she sold it does that mean I still own a piece of property
Was your name on the deed when she bought it? If the deed was only into your mother than you never gained any interest in the property.
Yes as you never formally consented to the transaction in writing
@Josh S true but that'd only be in the case of a power of attorney
Following
Depends. If your name wasn’t on the deed, then she didn’t need you to sign.
What about building a brand new custom house????
Your full of prunes. Title company's are a rip-off. Going through a lawyer is better. Title company's are never held accountable or responsible for their search which I pay a lot of money for. They over charge and take for ever.
How much is title insurance? Anyone know?
For me, it was about $2200 for insurance and the title endorsement letter. Seems like a lot of money but it's probably a lot less than it would cost to fix any problems that may crop up.
Dutch Ray thanks for that. Yeh it’s better to be safe than sorry 👍🏼
About 1% of the value of the home
If previous owner had title insurance, should I get title insurance?
Subu always what if they didn’t do theirs properly or their company missed something
Their insurance doesn't protect you.
what if my lawyer done all process in NY?
I'm mad I didn't do this! I'm scared. I thought it was a scam.
Hi dave can i still purchase title insurance even i already own the home
I believe the only time you can purchase title insurance is at closing
Title companies do alot for you. Piece of mind
Is a deed DIFFERENT from a title?
Isn't it cheaper to buy a shotgun and the moment one of these leachers from the past wants to take advantage of you, you just shot them in the face?
Ok done.
I knew someone who did not do this and lost the house within 3 months after purchasing it without the title insurance.
GlendaMarx
That's why I made sure I had title insurance when I bought my second home with cash.
2:30 what?
Every time I purchase a home and get a mortgage on it, they do a "title search" for $250, but I believe there is an option for "title insurance" too. Are they separate entities? To be honest I always thought title insurance was a scam, just a tacked on fee that the closing company pockets. Uh oh. D: To me a warranty deed is bullet proof, now I learned I need to do some more research. :O
They are two different things. The title search reveals the issues with the "title" itself that need to be cleared up or taken exception to before the title insurance can be issued and the property properly insured.
About the only thing that is "bullet proof," if you can even say that, is a quiet title action that conveys the property free and clear of any liens or prior title issues, and in some states depending on the laws, a tax sale essentially starts the property with a "clean slate," but title laws vary from state to state and depending on if its a real estate, commercial, or mineral conveyance.
Yes they are both separate, title searches may not show everything hence the insurance covers you for those things missing or fraudulently registered for example
Squid Rider
They do a title search then offer title insurance to help insure your rights to that property.
@@TeKnoVKNG23 Yes, all states are different. In MI a tax-sale gets a quick claim deed. In order to sell the property and be able to get a warrantee deeded title, a quiet title is required to be obtained. Its basically a lawsuit discharging previous claims.
It's so expensive though... it's so hard to get a home and it still be affordable for those who dont make as much money
Ella Kingsleigh
You don't seem to understand how important title insurance is.
Can't afford it buy a cheaper more affordable house/condo.
Live in a mobile home,RV,camper,car,etc. or rent.
Many choices.
It really isn't that expensive, here in Ontario Canada you pay at most around $430 for it
It's more expensive to lose the home you bought because someone else still had title to it.
Then it's unlikely that the house will be purchased fully with cash, and therefore, required by the mortgage company.
Dumb question, What if it's a new house and your the original owner?
How about the land that the house on it? Are you the original owner hundred years back?
Title Insurance should cost $400 not $4000.
Beware the fifth sister!!
What about a new build?
There could be liens on the land 🤷♂️
@@ChrisInvests
Or easements you may not be comfortable with....
Can also have liens from contractors/ subcontractors etc
Chris Invests - Personal Finance Videos that’s what I am going to buy, the townhome is brand new building, that’s right, never thought about that.
There can be plenty of issues with the land, especially if the "subdivision" was picked up by the developer during the crash in 07-08'
❤️
This is all such a crock of misinformation. When you buy real estate title companies ensure clear titles. What he is discussing is a Trust and if you don't have all siblings sign off on anything with an attorney help you are a fool. It is not insurance anyways it's title records. Siblings are not a problem if you are left a property in a trust. This guy is full of trash.
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