All Forum Posts by: Peter Walther

I agree with Don that acquiring an interest in property without a title policy is short sighted.  However, I just checked a national underwriter's manual, and it appears CD's are insurable, but there are criteria unique to them.  I suggest you check with a local agent to ask about getting a policy in your situation.  Many people are unaware of the limitation of liability if they get a title search, and something is missed.  Personally, if I relied on one, I'd assume I'm self-insured if something is missed.  Keep in mind that if you want to get a loan while you're a contract purchaser your lender will probably not be able to get a title policy since you don't own the property and cannot put a lien on it.

Also, since you'll need a deed from your seller when you're ready to resell, what do you do if he's in the wind since he's already been paid in full?

You don't "need" title insurance (as in it's not required in order to purchase property) but as you've read in this thread, it's highly recommended.  I can't foretell the future, but I suspect the requirement for the information from your grantors will probably be a onetime thing. The next examiner will see the title has been insured and unless another defect is found, will rely on your sale transaction.  You wrote (One of them told the escrow lady to go f off he wasn't giving her the information and she just informed me (as snooty possible) that she would not be able to close without it).  Seems a little sensitive to me since I suspect she's just doing her job and isn't trying to hold your deal up unnecessarily.  She may have also been a little annoyed that your grantor just told her to f off.  Nowhere did I write that title companies are great, in fact I'm more aware than most that they're just people in a particular business trying to make a buck.  They're not trying to save the world or salvage your investment.

I suggest you be sure to give the good faith deposit to either an attorney or the settlement agent, never to the seller.

I'm a little concerned that the seller is your neighbor.  Please consider that negotiations between the buyer and seller can sometimes become adversarial.  If this is someone you and/or a member of your family might be dealing with in the future it may be smart to have someone as a buffer.  Let's say your inspection comes back and identifies some matters that concern you, but your neighbor feels are inconsequential.  Let's also say your daughter and your neighbor's daughter attend the same 1st grade class and will continue to do so after the sale closes.  it might help to be able to point to your real estate agent as the unreasonable person who won't let close without resolving the issue.

Once a title policy is issued, if there is a covered problem in the future, getting corrective documents or bringing a quiet title action becomes the insurers problem, not the insured's.

No where in your screed did you give an explanation for why you didn't get a title policy when you bought the property from your friend, all you did was complain that the title company is being unreasonable and uncaring by refusing to help you clear up a problem of your own making.  That's not their job.

I just noticed you wrote the settlement agent wants an uninsured deed affidavit so yeah; you didn't get a title policy when you got your deed.

I'm assuming you purchased without getting a title insurance policy yourself, if I'm wrong, I suggest you submit a claim to the insurer.  If I'm correct, this situation is why you should have.  The insurer would have made these requirements then and you wouldn't be having this problem.  I suspect the new title examiner has found something in the chain of title or the execution and notarization of your deed that makes them unwilling to rely on it to issue your buyer a policy without exception for the concern(s).  You might tell your grantors that if they don't assist you now, you may have to bring a quiet title action to resolve the issue and that might make their lives even more complicated.  Of course, you might want to consider the possibility that there is a real legal reason why they don't want anything to do with the problem, like they didn't actually have the right to give you a deed.

I believe title insurance rates in Texas are promulgated by the state so the premium will probably be the same wherever you go.  Here's a link to a Texas title insurance premium calculator.  

Title Insurance Premium Calculator - Independence Title

 @Chris Seveney And a moving target.  I believe after I resolved my claim the law in NY was changed making the revocation automatic with the dismissal of the foreclosure.

 In my experience, many states view each failure to make a payment a unique default subject to its own running of the SOL.  So if a loan has been in default for ten years, the earliest four may be uncollectable but the later six and the remaining balance are.  The problem lenders get themselves into is when they accelerate the debt, then all payments are due and payable and are subject to the same SOL.  I had a claim in NY where a prior lender had accelerated a debt and filed foreclosure.  The borrower worked out a deal and brought the loan current and the foreclosure was dismissed.  At the time, NY required an affirmative act to revoke the acceleration which wasn't done.  I came into the picture when an agent issued a new loan title policy w/o obtaining a release of the prior mtg.  After some litigation the court rule the SOL had run on the prior mtg and my insured's lien was as insured.