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WHY DO I NEED TITLE INSURANCE?

A Real Estate purchase is the single most important investment many people make in their lives. "The Title" or how you take ownership is insured with Title Insurance.



WHAT IS TITLE INSURANCE EXACTLY?



Title insurance protects you as a new homeowner from anything that happened in the past with the home that you would not have knowledge of. You pay a one-time fee to a title company at the close of escrow on the home for having them conduct a thorough searchand evaluation of the property public records to guarantee nothing is missed.

Problems with Title can limit your how you choose to use and enjoy your new home, and have negative financial consequences.

There is always room for error of course but after an extensive check on behalf of a title company, you can a claim in the event that something is revealed in the future. Title insurance companies in fact specifically set aside funds to pay for any claims that may arise. This rarely happens however, it's just a failsafe.



WHAT COULD A TITLE SEARCH REVEAL?



Some examples of what could be disclosed in a search are:
Outstanding mortgages, deeds of trust, judgments, or tax liens;
Deeds, wills, and trusts that contain improper vesting, incorrect names or incorrect legal descriptions,
Incorrect notary acknowledgments;
Easements, CC&R's, and Rights of other parties.

Even with all the expertise that goes into a title search and examination, hidden defects can emerge after the close of escrow causing unpleasant and costly surprises.

Examples:
Previously undisclosed heirs with claims against the property.
Forged deed that purport to affect said land.
Mistakes in the public records including erroneous legal descriptions or misspelling of parties names.

Title Insurance gives you the security and protection against many title issues and the potential loss of your most valuable asset, your home.

If you have more questions about title insurance or its legal ramifications, talk to a California real estate law professional.

Latest news article courtesy of Carlos Siderman, President Property ID Corporation Los Angeles, California.


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