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I'm Thinking of Waiving Owner's Title Insurance on a New Construction Home...

I think I want to do this because it's a new construction home, and they would have to do a lien search prior to funding the loan. I'm putting 5% down, lenders: 95%. I understand that the lender's title insurance is required, but it is optional for the owner to have. Is it worth it to pay 2K for a property worth 300K. If something should go wrong, I'd have to get a lawyer who might be better suited to handle it, versus dealing with a title company owned by the builder who might refuse to sue the mortgage provider who is also owned by the builder. Am I correct in my thinking? Any advice is appreciated! by JennyRobertson341 from Dallas, Texas. Feb 15th 2017 Reply

William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,727 contributions

Much more info needed, but based on the question.. No.. you are not correct.. The "Owners Policy" is paid by the current owner of the property.. so if the builder now owns the lot, then the "Owners Policy" protects him, and the premium is paid by him.. However, certain builders will require an "Owners Policy" be paid by the "Buyer" (You)... and if you don't agree to it, then they don't build your home.. The policy protest the seller so when the transaction is complete, they can walk away from the transaction without any concerns if an issue pops up later.. they are protected.. If you already own the lot, then at the time when you bought it, the seller should have purchase a policy to protect them as they move on,,, so that transaction would have already been covered.. The "Lenders" policy is what is protecting you and the lender.. and it is required if you are financing. The title agent should have explained this to you when you opened escrow.. I'm a preferred Lender with Arizona and California being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

Feb 15th 2017
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