Know This Before Waiving Owners Title Insurance at Closing!
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- เผยแพร่เมื่อ 5 พ.ย. 2017
- www.dctitleguy.com Waiving Owners Title Insurance at your real estate closing can cause issues down the road and is extremely risky. Be sure to ask these questions before hitting the "decline" box. Answer these questions before assuming the maximum risk.
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Owner title insurance is a scam ripoff bcz legally lender or bank owned title and property till u finish payoff loan for 30 years so why a owner need a owner title insurance when buyer pay for lender insurance I think for a new home is important but for a old house 50 years old is a ripoff
Illinois 2020 feess lender / owner insured fee $3,000 for this feess not cheap at all
Is it necessary for a new construction home? My home come with basic title insurance but there is a fee for enhanced policy coverage
Yes...especially new construction. Did the builder pay the contractors or subs? Who owned the land before the builder? Keep in mind, Title Insurance covers you for everything that happened BEFORE you owned the property.
Everything that you have said it’s correct and I highly recommend this to everyone and read the fine print before signing and ask questions. Keep in mind if you purchased a piece and of land and you build a house and the land was sold twice from the seller and the first buyer finds out that you have build a house on their land they will claim their land and keep your house. The tittle insurance will only cover for the land and not for the house you have build. Who will be responsible for the expenses you paid to build the house, the seller, the tittle company or the tittle warranty company? In my opinion the seller committed fraud but what about the escrow officer are they at fault on this tile of situation?
Why pay owners title insurance in Florida if its your homestead? Doesn't the homestead exception already protect you against any and all that might come against the new owner? Thanks.
is this still needed if the house someone is buying is new? like a 2023 home
I’m buying a $23k house.
Is it still needed ?
How much would it cost on
Such a lo cost house ? Thx.
My house was built in 2009.
So at closing is when I need to purchase it ?
How about a title search?
Thx
I’m wondering…if a homeowner purchased title insurance at the time of closing and a few years later refinances the house, does the owner need to purchase a new title insurance policy?
Yes, but just a lenders policy because you are refinancing your mortgage.
Question:I bought a home on short sale back in 2011 and didn't buy Owner Title Insurance. There are no issues reported so far. Now in 2021 I am refnancing and is it recommended or beneficial to buy OTI now? If anything was wrong, something should have popped up by now i.e. between 2011 - 2021. Mr Wade - Early reply is appreciated.
One thing happening is major fraud-people are writing up fake Quit-Claim deeds, and your title policy DEFENDS your title! People are stealing identities and taking LOANS out on other people's homes TOO. So get the Cadillac like I did. It was a one-time $500 fee back in 2019. It's not a monthly charge like homeowners is, because the odds we will need it is exceptionally slim. People who opted out of owner's title insurance have ZERO way to authenticate themselves legally in the case of forged documents. Your owner's policy is for that. If Joe Shmo bangs on my door and yells at me for being in HIS house, having that policy on hand is EXTRA clout when you call police. A fraudster will not produce title paperwork with your signature all over 50 pages. Titles and Deeds are public domain-your policy is NOT. Fraudsters do not know who does or does not have back-up.
My enhanced policy says $25,000 for non-permit fines and abatement, and $25,000 in defective work and permits.
After purchase, I am discovering more and more undisclosed defective work, non-permit work, and code violations, some not caught by my home inspector. Does this mean my policy will pay for me to fix my home? There is now WAY too many problems for me to afford to fix-I am always finding some big and costly uh-oh.
What is the percentage of title insurance claims that get paid out? I have heard it doesn’t cover most situations.
I can't speak to the percentage...but keep in mind we sell insurance so if there is a claim it is reviewed to see if it is legit or not. If it's a false claim or a homeowner purchased just the Basic Title Policy and not the Enhanced--there could be things not covered. With this said, if a claim is legit, it is paid out.
Moreover, loss payouts are extremely low to the premiums collected. More people wouldn’t feel so cheated if it was more affordable like $150 - $200 a policy. Please research what Iowa has done to the title insurance scam.
Looking to buy Title insurance as a real estate investor. However maybe the seller has their own and the buyer has their own so it difficult to work with all three . . .
Title insurance protects you from everything that happened previously. If you are buying property...especially as an investor you will want to get a Title policy at closing.
@@WadeVanderMolen how much will a title policy cost at closing.....
@4:57 You admit that title insurance is grossly overpriced because the claims pay out percentage is only 4 to 7 percent.
You didn’t mention what I said right after. We pay millions of dollars per year in claims. I also never said anything about Title insurance being grossly overpriced. The cost of a policy is far less than the price to pay off someone else’s title issue to sell your home or hire an attorney and get it released through the court system.
@@WadeVanderMolen I appreciate your response because it would have been easy to not respond, delete my comment, or block my account. It is true that title insurance companies pay millions of dollars per year in claims. Title insurance is not a scam. Title insurance is a critical and necessary part of an orderly society based on contracts, the rule of law, and private ownership of wealth.
Nevertheless, title insurance is extremely overpriced relative to other forms of consumer insurance as quite obviously evidenced by the premiums payout claims ratio. Auto insurance pays out 80% of its premiums as claims, and direct to consumer pioneer GEICO pays out close to 100%, and profits essentially from years of cost free float.
That title insurance only pays out 7% of the premiums as claims is the evidence that it is overpriced. The reasons that it is overpriced are:
1. oligopoly with 4 national underwriters holding a 90% market share.
2. state mandated fixed pricing nullifying direct price competition among the oligopoly (hence it is a cartel) generated from lobbying state legislatures and
3. a sales commission driven model where 75% of the premiums go to salespeople.
The ultimate solution is a direct-to-consumer model similar to GEICO where consumers buy direct from the underwriters and cut out the middleman salespeople who take the vast majority of the consumer's premium and produce virtually nothing of value for the consumer and who, in fact, have extreme disdain for the consumer.
Your videos exclusively focus on real estate brokers and lawyers as the customer and never consider that the homeowner is the true customer. The business model is built on theft of the consumer's premiums.
Eventually technology will come for these cartel profits.
@@118Columbus Let me debunk your top 4 claims. 1. 7% of claims payout is millions and millions of dollars. Our average title claim payout is much higher than other types of insurance companies. 2.4 National Underwriters have 90% of the RISK in America. We insure the most but our risk is the most. Stewart Title has a partial Title Policy on the Empire State Building. First American has the other half. What do you think the payout on a Title claim would be on that? New York isn't going to have state insurance on that. 3. Most states aren't Iowa. California, New York, DC, Florida, Texas isn't going to have state insurance. That money to insure comes from somewhere, so either they would have high title rates...higher than ours, or it would get passed down as a "Tax" to the consumer to keep the price low. Would a renter want to pay a tax for a homeowner? 4. 75% of the premium certainly does NOT go to salespeople. Most Title Companies don't even have salespeople. Most in the DC and Northern VA markets do not. I'm fairly unique here. Most Title companies aim for a 20% profit margin. 30% is doing extremely well. How many homes do you own??
So with a lender's insurance and owner's insurance would you be paying 3 fees: (1) the fact that they've ACTUALLY searched the title, (2) writing an owner's policy, (3) writing a lender's policy. The insurance, I believe, is to cover either (1) a mistake that they missed when they were supposed to be doing their job checking the records at the recorder's office for that parcel and (2) something that wasn't in the record. It would seem to me that if you're obtaining both the lender's insurance and the owner's insurance that it should be discounted, because there is no real extra "work" involved with checking the records. Plus, as mentioned below by Davileet, there are numerous issues that title companies seem to be able to back out of covering. A video describing all that would be nice. Does anybody know when it would NOT be advantageous to getting both lender's and owner's insurance? For instance, on a commercial fix/flip loan, if the borrower has title insurance and the lender has the promissory note/mortgage, should the lender need title insurance as well? Or if the lender has title insurance, why should the borrower also get title insurance. In either case, I believe the parties are protected by a single policy. The 2 policy thing confuses me.
Here is the short. The Lenders Policy covers the loan you are obtaining. The Owners Policy covers the difference. So if you are putting down 20% the lenders policy covers the 80% and the Owners Policy covers the 20% AND the equity you accrue as you live in the home. Nothing should be discounted. You purchasing insurance on the Title to your home. I can guarantee you if there is a claim--it won't be discounted.
Is this part of the closing costs?
Jonathan Antonio Yes. Settlement and Title fees are costs the buyer incurs, though I’m some states the seller pays for the buyer’s Title policy.
@@WadeVanderMolen Whats the difference? Texas i.e.
This is informative. Thank you Wade.
You should also remind people that title company's are never held accountable or responsible for the title search, which I paid a lot of money for. How does that work? So if they screw up, I'm the one who gets screwed. Title company's have no incentive to do a through search job.
That’s not true. Title companies are literally only as good as the abstractors doing the searches. If they are not thorough, missing something and a Title company issues a Title policy, that’s a Title claim waiting to happen. Hence, why you buy the title policy so you are not left holding the bag. They will be a title claim and the title insurance provider would pay.
This is such horseshit! Title insurance is no longer needed in 2022, loss payouts are less than 5% of premiums. Research Iowa and what they have done. A lot of your payment at closing goes to lobbying to keep the title industry machine going.
@@robertburch3813 Realize, we are an insurance company. We insure risk. 5% of our premiums is still around $100 million per year. Do you think it’s BS to pay $100 million a year? I grew up in Iowa, they have state-run insurance. The DC area has twice as many people as the entire state of Iowa. You can't compare Iowa to New York, DC, LA, San Francisco, etc. When you buy an owner's policy for your home, YOU pay for it. In Iowa with state-run insurance, the costs are lower, but Title claims are still filed and paid, but since it's state ran, the payment comes from taxes...meaning everyone contributes. Would you want to be a renter and have your tax money used to pay Title claims?
What about buying a home from a private seller and financing through veterans United will i need title insurance?
Yes. You are still buying property. It is being transferred from a seller to a buyer. You will want a clear Title.
@@WadeVanderMolen can i ask veterans united for a copy ? And what would i ask them?
@@artbykeenan If I understand correctly, Veterans United is doing the financing. The Settlement/Title Company does the title search and provides you with Title Insurance. You need to select a Settlement/Title Company to handle your closing. If you don't know one, ask the loan officer at Veterans United if they have someone. Not sure where you are located, but my company (Stewart Title) is located in 43 states.
@@WadeVanderMolen veterans united do everything even closing included, i was just concerned whether or not they check for a clear title
@@WadeVanderMolen i have not bought yet just wondering in case i use them in the future
Great information thank you very much Sir.