Real Estate Title Insurance
As a notary signing agent, I come across the many elements that bring a successful real estate transaction to fruition. An often underestimated, important element in the long line of steps that occur when a real estate transaction is initiated, whether its a purchase or refinance, is title insurance.
According to the California Department of Insurance:
"Title insurance is a contractual obligation that protects against losses that occur when title to a property is not free and clear of defects (e.g. liens, encumbrances and defects that were unknown when the title policy was issued). Title insurance also guarantees loan priority. The terms of the policy define what risks are covered and what risks are excluded from coverage. The title insurer will reimburse you or your lender for losses that are covered, up to the face amount of the policy, and any related legal expenses. This protection is effective as of the issue date of the policy and covers defects arising prior to your ownership. Title companies issue policies on all types of real and personal property. Two types of title insurance policies for real property are the most common – a lender’s policy and an owner’s policy. "
You'll note that the title protection is effective at the issue date of the policy and covers defects arising prior to your ownership. For defects discovered after you take ownership, an Owner’s title insurance policy protects the property owner if someone sues saying they have a legal claim against the property from before the owner purchased it.*
Clearly. it's important to have an experienced and trusted title insurance agent and company at the helm for your real estate transaction. One of my colleagues is a well seasoned title insurance agent who has seen it all, and has navigated the real estate market for decades.
* Consumer Financial Protection Bureau
Call me at 562-786-5174
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