Southern California Title Insurance
“Hi Gary. I’ve never bought a home before, but I’ve been seeing a lot of good deals and I think it’s time to take the step. I don’t know much about buying a home, but I have a question. What is the purpose of title insurance and do I need to buy it?”
***ANSWER:
When you buy a home, you really buy “title” to the property—meaning the right to occupy it and use the space. And “title” can be limited by the rights and claims of others, which in turn can infringe on or even nullify your rights.
Such hazards include:
- Deeds, trusts, or will with erroneous wording, names, or legal descriptions
- Incorrect notary acknowledgements
- Outstanding judgments, liens, or loans against the property
- Pending legal action against the property impacting the buyer
- Forged deeds
- Invalid instruments executed under an expired or bogus power of attorney
- Unknown heir of a previous owner claiming ownership
- Mistakes in public record
And it’s title insurance that protects you from these and other title hazards.
A title insurance “owner’s policy” costs a one-time fee that protects you and your heirs. Good News if you’re buying: In southern California, this fee is traditionally paid by the seller.
The “lender’s policy” protects your lender, and all lenders require it to loan on your property. This policy’s fee is much lower fee and traditionally paid by the buyer.
Learn more about San Diego Real Estate
More Good News: In today’s market, sellers are often willing to pay buyers’ closing costs, so you may be able to get the seller to pay that.