Title Insurance California

Title insurance is a type of insurance that protects both homeowners and lenders from financial losses caused by problems with the legal ownership of a property, also known as the title. It's like a safety net in case there are hidden issues with the property's ownership history that could jeopardize your ownership or the lender's investment.

Here's a breakdown of how it works:

What does it protect against?

• Title defects: These could be things like unpaid taxes, liens, forgery, inheritance disputes, undisclosed easements, or errors in public records. If one of these issues arises after you purchase the property, it could threaten your ownership or ability to sell it freely.
• Legal fees: Defending your ownership in court can be expensive. Title insurance covers legal costs associated with defending your title against valid claims.

Who needs it?

• Lenders: Almost all lenders require borrowers to purchase lender's title insurance. This protects the lender's financial interest in the property up to the amount of the loan.
• Homeowners: While not mandatory, it's highly recommended to purchase owner's title insurance. This protects your equity in the property and covers losses beyond the loan amount.

Key points to remember:

• Title insurance is a one-time premium paid at closing, not an ongoing monthly expense.
• Different policies offer varying levels of coverage and exclusions. Carefully review the policy details before purchasing.
• While title searches are thorough, there's always a chance hidden issues might emerge later. Title insurance provides peace of mind and financial protection in such cases.