Author Topic: Title Insurance - Owner's Policy, Attorney?  (Read 1079 times)

mikedom

  • 5 O'Clock Shadow
  • *
  • Posts: 87
  • Location: Lansing, MI
Title Insurance - Owner's Policy, Attorney?
« on: July 05, 2016, 07:11:09 AM »
My wife and I are under contract to buy our first home. In the loan application documents, I saw a $800 line item for an owner's policy that protect our financial stake in the property should something come to light (that didn't come to light during the initial title search). This is in addition to the lender's policy (~$400) and the title search (~$400).

Is it worth it? The house has been owned by the previous owners for 14 years and they paid cash in 2002 according to public record.

Do you recommend getting an attorney to look things over before and at close? My parents (different state) always use an attorney and my co-workers (same state) haven't used them.

Jim2001

  • Stubble
  • **
  • Posts: 203
  • Location: Los Angeles, CA
Re: Title Insurance - Owner's Policy, Attorney?
« Reply #1 on: July 05, 2016, 05:50:23 PM »
In California, we use escrow offices, so I can't comment about the attorney other than to say purchasing a home is usually a significant financial transaction.  Why wouldn't you want an expert on your side to make sure there are no gaps?

As for title insurance, in CA banks won't lend without a title policy. 

Spitfire

  • Bristles
  • ***
  • Posts: 270
  • Location: Weston, FL
Re: Title Insurance - Owner's Policy, Attorney?
« Reply #2 on: July 07, 2016, 08:16:15 AM »
The lenders policy won't protect you from a title problem, only themselves, so you would have to buy your own to protect you. It's like anything else, if you buy it you will probably never need it, and if you choose not to you will end up having a title problem lol. To me it was worth it just in case.

I closed at an escrow office as well, and I did not have a separate attorney representing just me.

 

Field123

  • Stubble
  • **
  • Posts: 101
Re: Title Insurance - Owner's Policy, Attorney?
« Reply #3 on: July 07, 2016, 08:36:09 AM »

As for title insurance, in CA banks won't lend without a title policy.

Same in Illinois and I'm sure in every other State. You almost certainly won't need it, but you really don't have a choice.

mikedom

  • 5 O'Clock Shadow
  • *
  • Posts: 87
  • Location: Lansing, MI
Re: Title Insurance - Owner's Policy, Attorney?
« Reply #4 on: July 07, 2016, 08:45:53 AM »
Thanks for the replies.

We will most likely get both title policies just in case something happens. Don't want to be on the hook for a house we don't actually own.

As for the attorney, we'll probably pass. We'll just read everything we sign...

Field123

  • Stubble
  • **
  • Posts: 101
Re: Title Insurance - Owner's Policy, Attorney?
« Reply #5 on: July 07, 2016, 08:54:38 AM »
Thanks for the replies.

We will most likely get both title policies just in case something happens. Don't want to be on the hook for a house we don't actually own.

As for the attorney, we'll probably pass. We'll just read everything we sign...

I am a real estate attorney and I would encourage you to hire one; although you shouldn't pay more than $500-750. After the inspection, your attorney will write a letter asking for credits for any defects they find. This will likely cover much of the inspector and attorney's fees. Additionally, like insurance, while there probably isn't going to be an issue that would require an attorney -- if there is, you definitely want one. You're spending a lot of money on a house purchase, I think going forward without an attorney which is less than $750 net would be completely reckless.