What are the three most common types of title insurance?
- Lender's Policy. If you've ever mortgaged a home, chances are you were required to purchase a title insurance policy. …
- Owner's Policy. However, as a buyer, you also want to protect your investment — and the ownership rights that come with it. …
- Customs. …
- Refinance Transactions.
Why is title insurance so important to have if you are the owner or purchaser of California real estate?
Title insurance is crucial for a homebuyer because it protects both you and your lender from the possibility that your seller doesn't—or previous sellers didn't—have free and clear ownership of the house and property and, therefore, can't rightfully transfer full ownership to you.
Is title insurance required in California?
Title insurance is required for nearly all mortgage loans in California. This special type of insurance carries a one-time cost and acts as a critical safeguard for homebuyers against “title claims” – such as undisclosed debt associated with the previous owner.
What are the advantages of owner’s title insurance?
Title insurance can protect you if someone later sues and says they have a claim against the home from before you purchased it. Common claims come from a previous owner's failure to pay taxes or from contractors who say they were not paid for work done on the home before you purchased it.
How important is the title to a property?
In a typical sale and purchase agreement, there usually must be a valid title deed proving good title (i.e. proving correct ownership, without any encumbrances, etc.) before such transactions can take place. Hence, it is important that the title deed is kept updated as well (detailed process below).
Who pays for owner’s title policy in California?
In Southern California, the seller customarily pays the premium for title insurance. It has been the practice in Northern California that the buyer customarily pays the premium for title insurance, or occasionally the premium is split between buyer and seller.