ShanahBanana
Junior Member
What is the name of your state? Tx
I'm just curious if a few things are normal. I'm sorry this is so long but you can just look at the questions and ignore the extra info if you do not require or need the other info in order to answer the questions.
1) is it normal for the seller, or the buyer, to pay for owner's title insurance at closing and either way- is it usually around $1400???
I ask because I had noticed on my GFE that the lender's title insurance was included- owner's title insurance was not. I questioned my loan officer about this and she wrote me back (by email) that it was included but the seller's pay it- that's why it wasn't on my GFE. She said I'll get owner's title insurance but since I don't pay that, it's not on my GFE. The lender's title insurance shows $100 on there.
Today I receive some paperwork from the title company- we are closing on the 15th but were originally closing on the 13th. Long story short of it- the sellers live pretty far away and found out they'd be here on the 14th to sign late in the evening after moving out the remaining furniture they've had in the home (while uninhabited) since they moved out in April. so instead of mailing everything to them sooner and getting it back signed by them in time to close on the 13th- they will be signing on the 14th late evening, we'll be doing walk thru on the 14th, but we'll be signing early morning of the 15th. The paperwork from lender/etc. is supposed to all be ready on the 13th but dated the 15th -this was done this way because they'll be signing on the 14th late- too late for funding to go thru that day- so we'll sign the next day instead of paying interest rate for an extra day on the 14th when we couldn't take keys/possession anyway since funding can't happen that late in the evening (bank closed by then).
Anyway---------- I receive some paperwork from the title company today. One of which was some information about the owner's title insurance. I'm going to have to get it explained to me by my RE agent because the legalese is difficult to really grasp after page after page of it- but honestly I can't really see what the owner's title insurance DOES protect me from since it seems to list out about ever possibility I can think of as "discluded" or "not included" coverage! But it also states the cost is $1435 and an additional 5% if we want it to also cover boundary discrepencies, conflicts, line isues, encroachments, etc. That's pretty much all I could think of that is not already listed as "discluded" the in the regular policy- yet 5% more on top of $1435 to cover those things? I sure hope my loan officer is right and the sellers are paying for this- and I think it's RIDICULOUS that the lender's title insurance costs $100 (we pay for that too, ofcourse) but for owner's title insurance it's $1435+? I'm not sure this is even needed considering it's in a new addition, I have survey, etc. and the home was built in 1999 with one previous owner and that's it. But things about liens/etc. are shown discluded -so what's the point of the owners title insurance? I have no idea.
2.) Isn't a covenant with limitations, requirements, etc. the same as an HOA (but no cost), with an architectural control committee, pretty much the same as an HOA and should be disclosed in some manner BEFORE a few days before closing?
This is in a semi-new addition to our town... the home was built 1999. The disclosure checks "no" on HOA and of that we were glad... we were not willing to purchase a home in an area with an HOA (NO OFFENSE to those that like we- we just prefer not to live with an HOA, especially one with high costs monthly or annually). However, the paperwork we received on the title insurance (as seen above) also had a survey and some paperwork on the "restrictive convenants"- this is the first we've heard about this and there are things on there we don't like... much at all.
There are lots of things obviously intended for the builders on the lots originally (such as how big sq ft the houses must be- all the way down to how many trees and what size must be in every lot with the home, etc.) but also other things such as the privacy fencing (which it has already and no other fencing allowed) cannot be over 6ft- so we can never have 8ft if we wanted. Okay... but then it also says we cannot have "portable storage buildings" even in our backyard. Prefrabicated storage buildings around here, even if put on slabs- are portable. It also says any storage buildings, workshops, etc. must be in the same make and appearance of the home- so we'd have to build a brick storage building similar to our home in order to have a storage building in our back yard? Weird and a pain.
But that's not all- then it goes on to say no trucks over one ton, no trailers, boats or RVs on the street parking OR in the driveway OR in the backyard if visible by the street. Now here's the rub- we have a boat and there is a place already made in our backyard (driveway continues thru gate in privacy fencing for boat storage inside the backyard) but the rest of the backyard is pretty much taken up by the fancy dog run with doghouse built onto it, pool and such... there is only one space (to the side of the boat area) that we could possibly continue the driveway into the backyard even more and store our travel trailer there (right now we keep it at our sister's house who lives in the country- but we did not intend to keep it there FOREVER!) This is not a small travel trailer. putting it there -it will show over the 6ft privacy fencing at the driveway area on the other side of that fencing- people might be able to drive by and look up our driveway and see the RV stickingup over the fencing in our backyard- so that's a no go.
And to make an enclosed RV parking and/or carport for it back there to somehow "hide" it from visibility- would have to be in like "make and appearance" as the home? Anyone ever seen an RV parking garage/enclosure made of brick to match a home? I haven't.
And we can't even put it in our driveway at times- say we plan on going camping that weekend we go get it from sister's and park it in the driveway for a couple of days or something and get it all prepared for a camping trip? And we can't ever park our boat in the driveway ever?
Here's the rub- the owners of this home at this time have their boat out in the driveway (not in the backyard) and it's been there in the same spot for over a month. We had no idea that wouldn't be allowed. I've also driven by several times and seen other people have RV's parked on the street- albeit for short periods of time. The convenant says that "any failure to enforce shall in no event be a waiver of any right to do so hereafter"- so basically they may allow it but might getcha sometime. there is some other legalese stuff in there about how OTHER homeowners in this addition might sue or something?
(it says: "these restrictive covenants may be enforced by legal or equitable proceedings, by any person owning a lot or interest in a lot, provided that the Declarant is not obligated to enforce said restrictions. Declarant or any owner shall have the right to enforce at law or equity, all restrictive convenants now or hereinafter imposed by the provisions of this declaration". So basically if your neighbor wants to allow someone else to break any of these restrictive covenants they can- but if they don't like you or whatever, they can enforce it by legal or equitable proceedings? Doesn't sound good...)
There are other things mentioned as restrictions but those don't really bother me... things that sound so much like an HOA- such as specific trees kept in yards, landscaping must be kept pleasant appearance, etc. Those don't bother me- but it just reeks of an HOA that doesn't cost a fee. The "restrictive covenants" are basically ran by a committee calls "architectural control committee" and the 3 names -I recognize two (same last name) as being the owners of the empty lots and the lots that houses are still being built on in this addition.. the 3rd name I don't recognize for sure but it sounds like some sort of official for the city. I'll look into that.
Doesn't this sound like an HOA to you? And shouldn't this have been disclosed to us before now? I mean we see a home with a boat in the driveway for over a month- and the disclosure says no HOA and then a few days before closing we find out we essentially DO have a type of HOA with committee and all (just no fees and only rules- they don't DO anything like landscape upkeep, etc.) and find out a boat really can't be put in the driveway? Seems misleading to me.
What say you?
I'm just curious if a few things are normal. I'm sorry this is so long but you can just look at the questions and ignore the extra info if you do not require or need the other info in order to answer the questions.
1) is it normal for the seller, or the buyer, to pay for owner's title insurance at closing and either way- is it usually around $1400???
I ask because I had noticed on my GFE that the lender's title insurance was included- owner's title insurance was not. I questioned my loan officer about this and she wrote me back (by email) that it was included but the seller's pay it- that's why it wasn't on my GFE. She said I'll get owner's title insurance but since I don't pay that, it's not on my GFE. The lender's title insurance shows $100 on there.
Today I receive some paperwork from the title company- we are closing on the 15th but were originally closing on the 13th. Long story short of it- the sellers live pretty far away and found out they'd be here on the 14th to sign late in the evening after moving out the remaining furniture they've had in the home (while uninhabited) since they moved out in April. so instead of mailing everything to them sooner and getting it back signed by them in time to close on the 13th- they will be signing on the 14th late evening, we'll be doing walk thru on the 14th, but we'll be signing early morning of the 15th. The paperwork from lender/etc. is supposed to all be ready on the 13th but dated the 15th -this was done this way because they'll be signing on the 14th late- too late for funding to go thru that day- so we'll sign the next day instead of paying interest rate for an extra day on the 14th when we couldn't take keys/possession anyway since funding can't happen that late in the evening (bank closed by then).
Anyway---------- I receive some paperwork from the title company today. One of which was some information about the owner's title insurance. I'm going to have to get it explained to me by my RE agent because the legalese is difficult to really grasp after page after page of it- but honestly I can't really see what the owner's title insurance DOES protect me from since it seems to list out about ever possibility I can think of as "discluded" or "not included" coverage! But it also states the cost is $1435 and an additional 5% if we want it to also cover boundary discrepencies, conflicts, line isues, encroachments, etc. That's pretty much all I could think of that is not already listed as "discluded" the in the regular policy- yet 5% more on top of $1435 to cover those things? I sure hope my loan officer is right and the sellers are paying for this- and I think it's RIDICULOUS that the lender's title insurance costs $100 (we pay for that too, ofcourse) but for owner's title insurance it's $1435+? I'm not sure this is even needed considering it's in a new addition, I have survey, etc. and the home was built in 1999 with one previous owner and that's it. But things about liens/etc. are shown discluded -so what's the point of the owners title insurance? I have no idea.
2.) Isn't a covenant with limitations, requirements, etc. the same as an HOA (but no cost), with an architectural control committee, pretty much the same as an HOA and should be disclosed in some manner BEFORE a few days before closing?
This is in a semi-new addition to our town... the home was built 1999. The disclosure checks "no" on HOA and of that we were glad... we were not willing to purchase a home in an area with an HOA (NO OFFENSE to those that like we- we just prefer not to live with an HOA, especially one with high costs monthly or annually). However, the paperwork we received on the title insurance (as seen above) also had a survey and some paperwork on the "restrictive convenants"- this is the first we've heard about this and there are things on there we don't like... much at all.
There are lots of things obviously intended for the builders on the lots originally (such as how big sq ft the houses must be- all the way down to how many trees and what size must be in every lot with the home, etc.) but also other things such as the privacy fencing (which it has already and no other fencing allowed) cannot be over 6ft- so we can never have 8ft if we wanted. Okay... but then it also says we cannot have "portable storage buildings" even in our backyard. Prefrabicated storage buildings around here, even if put on slabs- are portable. It also says any storage buildings, workshops, etc. must be in the same make and appearance of the home- so we'd have to build a brick storage building similar to our home in order to have a storage building in our back yard? Weird and a pain.
But that's not all- then it goes on to say no trucks over one ton, no trailers, boats or RVs on the street parking OR in the driveway OR in the backyard if visible by the street. Now here's the rub- we have a boat and there is a place already made in our backyard (driveway continues thru gate in privacy fencing for boat storage inside the backyard) but the rest of the backyard is pretty much taken up by the fancy dog run with doghouse built onto it, pool and such... there is only one space (to the side of the boat area) that we could possibly continue the driveway into the backyard even more and store our travel trailer there (right now we keep it at our sister's house who lives in the country- but we did not intend to keep it there FOREVER!) This is not a small travel trailer. putting it there -it will show over the 6ft privacy fencing at the driveway area on the other side of that fencing- people might be able to drive by and look up our driveway and see the RV stickingup over the fencing in our backyard- so that's a no go.
And to make an enclosed RV parking and/or carport for it back there to somehow "hide" it from visibility- would have to be in like "make and appearance" as the home? Anyone ever seen an RV parking garage/enclosure made of brick to match a home? I haven't.
And we can't even put it in our driveway at times- say we plan on going camping that weekend we go get it from sister's and park it in the driveway for a couple of days or something and get it all prepared for a camping trip? And we can't ever park our boat in the driveway ever?
Here's the rub- the owners of this home at this time have their boat out in the driveway (not in the backyard) and it's been there in the same spot for over a month. We had no idea that wouldn't be allowed. I've also driven by several times and seen other people have RV's parked on the street- albeit for short periods of time. The convenant says that "any failure to enforce shall in no event be a waiver of any right to do so hereafter"- so basically they may allow it but might getcha sometime. there is some other legalese stuff in there about how OTHER homeowners in this addition might sue or something?
(it says: "these restrictive covenants may be enforced by legal or equitable proceedings, by any person owning a lot or interest in a lot, provided that the Declarant is not obligated to enforce said restrictions. Declarant or any owner shall have the right to enforce at law or equity, all restrictive convenants now or hereinafter imposed by the provisions of this declaration". So basically if your neighbor wants to allow someone else to break any of these restrictive covenants they can- but if they don't like you or whatever, they can enforce it by legal or equitable proceedings? Doesn't sound good...)
There are other things mentioned as restrictions but those don't really bother me... things that sound so much like an HOA- such as specific trees kept in yards, landscaping must be kept pleasant appearance, etc. Those don't bother me- but it just reeks of an HOA that doesn't cost a fee. The "restrictive covenants" are basically ran by a committee calls "architectural control committee" and the 3 names -I recognize two (same last name) as being the owners of the empty lots and the lots that houses are still being built on in this addition.. the 3rd name I don't recognize for sure but it sounds like some sort of official for the city. I'll look into that.
Doesn't this sound like an HOA to you? And shouldn't this have been disclosed to us before now? I mean we see a home with a boat in the driveway for over a month- and the disclosure says no HOA and then a few days before closing we find out we essentially DO have a type of HOA with committee and all (just no fees and only rules- they don't DO anything like landscape upkeep, etc.) and find out a boat really can't be put in the driveway? Seems misleading to me.
What say you?
