Posts Tagged title insurance


Now more than ever, Title Insurance is necessary

0 Comments By Charles Brundage on May 31st, 2011
Tags: ,      Categories: title insurance

The Fox Business Website recently posted an article titled ’3 Reasons Every Homeowner Needs Title Insurance’.  The article reinforces the idea that  now more than ever, title insurance is necessary.  When you have a down market or a market in turmoil with foreclosures and bank owned properties, there is inherently more risk of fraud, deception and just plain mistakes in the closing of real estate deals.  While the likelihood that you will ever file a title insurance claim (as opposed to an auto insurance claim for example) is remote, it is still essential that you purchase title insurance to protect your home and your investment. 

Click here for the full article that appeared on FoxBusiness.com.

Additional Title Protection

0 Comments By Charles Brundage on February 16th, 2011
Tags: , , , ,      Categories: Buying, Dutchess, Market Area, Putnam, title insurance, Westchester

thoroughbred title Additional Title ProtectionWith the residential real estate market in it’s current state, now is a good time to take another look at both the Market Value Rider and the Extended Protection Owner’s Policy. Both offer benefits to the purchaser of a 1-4 family residential property and are available through Thoroughbred Title Services.

Market Value Rider
Simply stated, the Market Value Rider offers the purchaser the opportunity to enhance their title coverage. If there is ever a claim on their title the purchaser is covered up to the fair market value of the property at the time the claim is made. A standard title policy only covers purchaser up to the amount they paid at closing. Obviously, as prices have come down there is a chance that this could come into play. The Market Value Rider is available for a one-time charge (10 % of the Owner’s Title Insurance Premium) payable at closing (there are no yearly premiums or renewals). On an $850,000 purchase the Market Value Rider would cost $299.

Extended Protection Policy
The Extended Protection Owner’s Policy is available for a 20% increase over the standard Owner’s Policy premium. This policy actually covers purchaser for certain acts of fraud that occur post-closing. Standard title policies only cover the purchaser for things that occurred prior to closing or at the closing itself. The Extended Protection Owner’s Policy also has a built in partial Market Value Rider, which gives the owner enhanced coverage for the first five years of ownership (when most claims occur). Also, it covers some issues that can arise at the Building Department that standard title policies do not insure.

Here are some of the highlights and conditions of each of these products:

Market Value Rider

  • Covers purchaser for full market value (minus any improvements made after purchase) at time of loss
  • Available for a 1-4 family home used predominantly for residential purposes
  • Purchaser must be a natural person and must reside at the premises
  • Available for Condos and Co-op Units
  • Cost is 10% of the Fee Policy Premium

Extended Protection Policy

  • Has “built in” partial market value rider: coverage automatically increases 10% a year for 5 years.
  • Protects against fraud or forgery that occurs after the date of closing. Title Company would cover cost of setting aside fraudulent deed or mortgage
  • Covers violations of zoning and local building laws that result in a forced removal of a structure, including decks, garages, extensions, etc.
  • Guarantees vehicular access to and from the premises (standard policy only guarantees pedestrian access)
  • Premium is 20% higher than standard Owner’s Policy

Do I Need Title Insurance?

0 Comments By Elizabeth Nunan on January 20th, 2011
Tags: ,      Categories: Buying, Dutchess, Putnam, title insurance, Westchester

Our home buyers ask us this question frequently: “I’m buying a house with all cash, do I still need title insurance?” To find the answer, I decided to ask a title professional. I reached out to Charles Brundage, Esq., General Counsel of Thoroughbred Title Services, an affiliate of Houlihan Lawrence, and this is what he told me:

The purchase of a home is usually the largest purchase one will make. If you take out a purchase money mortgage to finance the transaction the lender will require you to pay for title insurance to protect their interest in the property. If you are lucky enough to be able to purchase without financing you still should avail yourself of the opportunity to protect your investment by purchasing title insurance.

Title insurance is unique in that unlike other forms of insurance, it protects you against acts that have already occurred, rather than things that may happen in the future. For example, if you find out after your closing that the previous owner did not pay real estate taxes and the taxes are now a lien on your property, you would be covered by your Owners Title Insurance Policy. Since the previous owner’s delinquent taxes should have been disclosed to all parties involved in the transaction and were not, you would have a claim under your title policy. If you chose not to get title insurance you would be responsible for the back taxes and you would have to try to go after the prior owner to collect (good luck).

Also, unlike other types of insurance, you only have to pay the title insurance premium once — at your closing. You will not get renewal notices or bills in the mail post closing; you are covered for as long as you own your home. Banks will not close real estate transactions without getting title insurance because they do not wish to assume the risk that something may turn up that impairs their interest in the property. You should not assume this risk either. Everyone involved in a real estate deal is capable of making a mistake that could come back to haunt you as the purchaser. Why not let the title company worry about it and handle it in the event something does turn up?

Closing Costs for New York State

0 Comments By Gay Prizio on August 30th, 2010
Tags: , ,      Categories: Buying, Dutchess, Market Area, Putnam, title insurance, Westchester

 The Wall Street Journal recently reported that New York state has among the highest closing costs in the country. Real Estate Settlement Procedures Act (RESPA) calls for the Good Faith Estimate of closing costs to be accurate and avoid higher, unanticipated costs at closing.

This is good news for the buyer. 

Thoroughbred Title Services, LLC, and affiliate of Houlihan Lawrence, recently announced more good news for the home buyer. Namely that Thoroughbred’s title insurance rates are 10% lower than the industry standard. 

Title insurance is a one-time purchase at closing that protects new home buyers from financial loss on a property that might occur as a result of previous faults on a deed such as liens, clerical errors, misrepresentation, etc.  Typically, a buyer’s real estate attorney arranges for title insurance and uses vendors with whom they have a long-standing relationship. Premiums are calculated based on the purchase price and mortgage amount of the home and rates are comparable regardless of insurer, meaning the homebuyer does not have the ability to shop for competitive rates. 

Homebuyers typically glaze over the cost of title insurance. But they are starting to pay attention now that there is the opportunity to save money. For example, a person buying an $800,000 home with a $600,000 mortgage would be charged a total of $4,291 for title insurance and related research services by Thoroughbred Title, about $1,000 below the typical cost from competitors.   

Houlihan Lawrence is proud to be affiliated with a company that pro-actively offers our clients a cost savings without a compromise in quality or coverage.  It aligns with Houlihan Lawrence’s mission to make the real estate process transparent, simple and embedded with value in every facet of the home buying experience.