WHAT !!!Still confused on TI and LI !!!!! - Posted by GaStef

Posted by KPC on August 26, 2005 at 15:14:45:

sent you an email, will try to help.

WHAT !!!Still confused on TI and LI !!! - Posted by GaStef

Posted by GaStef on August 26, 2005 at 12:22:18:

I have been reasearching on archives for hours, reading and trying understand the differences between the two and why it’s needed. I sorta get Title…, but STILL don’t get Lender’s!!! I think I have made myself more crazy than I started out. And… why do I have to by title ins. when I sell??? I already bought at closing…right?? (hypotheticlly)JEEEES!!!

I need to pose another question… When buying HUD and REO’s but also working with a realtor… will they (realtor) use their title companies and lawyers?
I will ofcourse get all info. from them on their end…or do we always use our “own people”? Just wanted to have a bit more knowledge on my side. I ask the crazy questions here and not out there. :slight_smile:

I will still read on the archives… but if there is an article in how to that I haven’t come across, could someone enlighten me on that also please.(?)

Thanks a bunch to everyone!!

Re: WHAT !!!Still confused on TI and LI !!! - Posted by Brian (UT)

Posted by Brian (UT) on August 26, 2005 at 14:32:16:


Quich course, both are title insurance policies, one to protect the buyer, one which is more extensive to protect the lender (they have the most at stake, it’s mostly thier money).

When you sell, your policy is not transferable to the new buyer, and who knows what you did while you owned the property. They will get a new up to date policy.

Who pays for what is usually just a matter of custom and you can write up the contract anyway you see fit.

In California, agents cannot chose your title companies for you, it is the choice of the principles and agents can get in trouble. The main problem was kickbacks and some states have recently gone after this problem.


Re: WHAT !!!Still confused on TI and LI !!! - Posted by KPC

Posted by KPC on August 26, 2005 at 12:49:57:

Hope this helps, only applies to Arizona, don’t know about anywhere else. Normally, Title Insurance is paid for by the seller to protect the buyer’s interest. Lender’s Title Insurance ( if that is what you mean by LI) is purchased by the buyer to protect the interest of his mortgage company. Both insure against the same thing, claims that may already exist against the title.
The buyer generally has the right to choose whichever title company he will use, but not when they are dealing with HUD or banks, they choose who the title company is.
Don’t think too hard about title insurance, just be glad it is there, and resign yourself to paying for it.

Re: mmmm, might get it…(?) - Posted by GaStef

Posted by GaStef on August 26, 2005 at 12:58:50:

Ohhh I think I may get it…
so when I obtain a property the seller will already have title ins. But I will need to get Lender’s TI as I’m purchasing it.(??)

Thennnnn…when I sell the property do I need to purchase TI AGAIN??? or just know I have it already???
Or is that where the Warrenty deed and TI binder comes in.??
I know I am making this more complicated that need be, just careful.
Thanks again KPC.
Any other info would be wonderful.

Re: mmmm, might get it…(?) - Posted by KPC

Posted by KPC on August 26, 2005 at 13:22:56:

The seller probably already has title insurance,that covers them and their ownership, but will buy it again for you. If you will have a mortgage, you will purchase Lender’s title insurance for your lender. This occurs every time a property changes hands through an escrow company.
If you bought a house from your Mom, she would have title insurance that insured against claims to the property that predate her purchase. You would want insurance that goes to the date of your purchase. Title insurance is the only insurance that insures against things that have already happened. This is why it is hard to understand. An overlooked lien or claim during the title search, something unknown, insures your title to the property.
No you can’t be too careful and you need to watch what people want you to pay for. Do you have an escrow officer or escrow assistant that would review this with you?

Re: Thanks a bunch - Posted by GaStef

Posted by GaStef on August 26, 2005 at 14:13:05:

Thank you for your help!
Do you work at all with REO’s? I have questions about that also. Could I bother you on an
e-mail level with just a few WEIRD questions that are puzzeling?
If not, or if you do not deal in these, thanks a bunch for your help.