Ready To Buy A Home

Who’s Who In The Transaction

Life Of A Purchase & Sales Transaction

Title Insurance

What is Escrow

Inspection Process

Who Pays What?

Financing

The Loan Process

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Title Insurance

“In California, most real estate transactions are closed with the issuance of a title insurance policy in favor of the owner, the Lender or both. Many homebuyers erroneously assume that when they purchase a piece of real property, possession of the deed to the property is all they need to prove ownership. Not so, because hidden hazards may attach to real estate. Forgeries, faulty surveys, hidden liens, the false representation of ownership of a married person as being single are just a few examples of factors which may cloud the title to real property ownership. A property owner’s greatest protection is a policy of title insurance.”

WHAT IS TITLE INSURANCE? Title insurance insures property owners that they are acquiring a marketable title. Unlike casualty insurance (policies which insure against future events), title insurance is designed to eliminate risk or loss caused by defects in title from past events. Title insurance provides coverage only for title problems. A title insurance policy is a contract of indemnity which insures against loss if the title is not as reported; and if it is not and the owner is damaged, the title policy covers the insured for his/her loss up to the face amount of the policy.

TITLE SEARCH Issuing a title policy is an extensive and exacting process. Title companies work to eliminate risks by performing a painstaking search of the public records or the title company’s own “plant,” where public records pertaining to the property and the parties to the escrow are maintained, to determine the current recorded ownership, any record liens, encumbrances, or other matters of record which could affect the title to the property. Once a title search is complete, the title company issues a preliminary report detailing the current vesting, description, taxes and exclusions from coverage.