Title insurance for vacant land
General Topic
Contributors to this thread:
Hunts_with_stick 26-Aug-21
Bandicooter 26-Aug-21
Aspen Ghost 26-Aug-21
Hunts_with_stick 26-Aug-21
Trial153 26-Aug-21
Oryx35 26-Aug-21
JTreeman 26-Aug-21
txhunter58 27-Aug-21
EMB 27-Aug-21
Swampbuck 27-Aug-21
JohnMC 27-Aug-21
EMB 27-Aug-21
Hunter's Granddad 27-Aug-21
DanaC 27-Aug-21
Hunts_with_stick 28-Aug-21
Trial153 28-Aug-21
LBshooter 29-Aug-21
Lawdog 29-Aug-21
flyingbrass 29-Aug-21
Hunts_with_stick 30-Aug-21
Grasshopper 02-Sep-21
eddie c 02-Sep-21
Buckeye 02-Sep-21
26-Aug-21
Do I really need title insurance for vacant land? The previous owners have owned it since at least the early 90's if not before that. The title search came back clean, no liens etc... When I look it up I find varying answers. The ones that yes appear to be written by insurance agents or companies.

From: Bandicooter
26-Aug-21
I'd say only if you took out a loan to buy the land. If you paid cash, then no.

From: Aspen Ghost
26-Aug-21
Vacant or not has little to do with it. It's more about how much you spent for it and do you want to risk that vs the cost of title insurance (which ought to be pretty small). It's just a risk decision, look at the numbers, estimate the risk and decide.

26-Aug-21
Paid cash, it wasn’t cheap but definitely not expensive

From: Trial153
26-Aug-21
Yes

From: Oryx35
26-Aug-21
I would and have, but as Aspen points out, it's a relatively straight forward risk decision.

From: JTreeman
26-Aug-21
You would be a fool to not IMO. And this is coming from a guy who pretty much despises any type of insurance. I certainly don’t buy property without title insurance…you probably won’t ever need it, but if you do…

—Jim

From: txhunter58
27-Aug-21
I have bought and sold lots of property in the last 40 years. Both cheap and expensive. I have always bought the title insurance. Would not consider not doing it.

From: EMB
27-Aug-21
Title insurance insures your title to the land, vacant or not, mortgaged or not. It's not like regular insurance that insures against future events. It insures events in the past that go far beyond the most recent owners. As they say to the beginning of time. It insures that you own the property free and clear of all items that have not been excepted and will pay the attorney's fees and costs if it turns out you have an issue. There is a one time premium based upon the purchase price. In Florida the first $100,000, and any portion thereof, is $5.25 per $100. It's pretty cheap insurance that I recommend to my clients. This is also a negotiable cost in your sales contract.

Good luck.

From: Swampbuck
27-Aug-21
I got it when I bought my place. The cost was minimal. I was told it protected me against any mineral, timber or water rights that previous owners might have had

From: JohnMC
27-Aug-21
I would not call $5.25 per hundred cheap. On 500k property that is over 26k.

From: EMB
27-Aug-21
Sorry, that what I get for doing math for doing math in my head. The correct multiplier is .525 per 100. For example $100,000.00 divided by 100 x .525 = $525.00. The multiplier goes down for amounts greater than $100,000. That is only the Florida rate and may not be the rates charged in other states. My apologies again.

27-Aug-21
I am a realtor and work for a company that specializes in vacant land. I believe it is a good thing. I've sen to many issues when people didn't buy it and I would always buy tittle insurance.

From: DanaC
27-Aug-21

DanaC's Link
https://www.realtor.com/advice/buy/how-much-does-title-insurance-cost/

"In some states such as Texas and Florida, title insurance premiums are fixed by the government, so you will pay exactly the same amount no matter what. Other states such as California and New Mexico have unfixed premiums, which means that buyers can shop around. Iowa actually underwrites the insurance itself, resulting in the lowest premiums in the country: $110 for properties costing up to $500,000."

28-Aug-21
so txhunter = in those 40 years of buying and selling, have you ever had to use title insurance?

From: Trial153
28-Aug-21

Trial153's Link
Found this article interesting

From: LBshooter
29-Aug-21
It's real simple, insurance is peace of mind, so if that's what you need then buy it.

From: Lawdog
29-Aug-21
In 40 years of practicing real estate law, I've had clients use the title insurance multiple times. It is well worth getting.

From: flyingbrass
29-Aug-21
Always get title insurance. I'm in a huge lawsuit for over a year now because they didn't get title insurance. They are landlocked and assumed they had access. Also, my neighbor to the south of me is in a big mess over their title and they have had the land for years. in 2007 we purchased a duck camp for not much money. Good thing we got title insurance or we would have had a real big mess on our hands. The house was only on half of the property and half of it on the neighbor. What a mess. Always get title insurance.

30-Aug-21
thanks all

From: Grasshopper
02-Sep-21
It's a no Brainerd, GET TITLE INSURANCE

From: eddie c
02-Sep-21
Recently a relative had an issue selling land where the previous owner's lawyer placed a "subject to life estate interest retained" clause on the deed at the time of sell. The original owner is still alive so the new buyer's lawyer advised against the sell. Would title insurance prevented this?

From: Buckeye
02-Sep-21
YES

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