Owner's title insurance for new house? (lender, buying, live)

[zjlj2008]

Going to buy a house from a big builder, but they are not going to pay for the owner's title insurance, I wonder if it's necessary for me to purchase the owner's title insurance? Lender says it's optional.

[travelguy_73]

I can't say for sure, but thinking about how the builder came to own the land seems to hold the answer.

It likely bought from a developer who put in the infrastructure ("the horizontal development"), and then the builder built the house for delivery ("the vertical development"). In this case, the developer itself had to work through any title issues when it purchased the land from the seller, and the builder basically just takes delivery (though it might have had title insurance itself). The second scenario is that the builder developed its own lot, buying from the seller (let's say a farmer). In this case, the builder had to work through any title issues at purchase.

Now, if you are talking about an infill project, where the builder purchased in a pre-existing development, then I might think twice about not having it.

[predatorprey]

I would at minimum see the title insurance the builder bought for themselves. I assure you they did, and won't pay it for you because it would cost them money.

[wheretogo]

chances are that builder bought the title insurance for the lender ,about $2000, (and thats all the lender cares about). The title insurance for the owner is optional (for the bank). But, when both are bought together, the owners title insurnace is cheap. about $200, I think.

Originally Posted by zjlj2008

Going to buy a house from a big builder, but they are not going to pay for the owner's title insurance, I wonder if it's necessary for me to purchase the owner's title insurance? Lender says it's optional.