Title Insurance in California
Buying a property is a major financial decision, and buyers will want to make sure that their property is in good condition. One aspect of being in good condition is that the house’s title is protected from past events. This protection is guaranteed by title insurance; it protects the buyer from title defects in public records that the buyer had previously no knowledge of. Examples of these include liens for unpaid taxes, forgery, and undisclosed heirs.
Limitations of Title Insurance
While this form of insurance does disclose defects and encumbrances, having such a policy does not mean that all of them have been disclosed. Depending on the coverage of the policy, exceptions to the insurance, and the insurance company’s standardization of forms, there may be some past events that are not disclosed. Furthermore, this is not another form of casualty insurance for a property. A title policy does not insure a property against events like theft or natural disasters. Moreover, title insurance also does not protect against title detects that will occur in the future (after the buyer has bought the property).
Selecting Title insurance
When the buyer receives their initial title report, it will contain exceptions and exclusions. It is imperative that the buyer has an experienced attorney to advise them when working through the report. Buyers must make sure that they understand all exceptions and definitions.
These preliminary reports are created by title insurance companies. Given the importance of the work they are doing, it is advised to choose a title insurance company that has a high quality of work, is flexible, and has a record of stability and professionalism.