Title Insurance in California
Before making a major, life changing financial decision such as buying a house, one must make sure that the property in question has good standing. One of the first and foremost research that should be done is examining and protecting the house’s title. Protecting a house’s title from past events protects the buyer from title defects in public records such as forgery, liens from unpaid taxes, and disclosed heirs. A buyer could have zero knowledge of these defects and could be greatly affected if not clued in.
The Limitations of Title Insurance
The benefit of title insurance is that it does disclose a majority of hindrances. However, not all of them are required to be disclosed. Past events might not be disclosed depending on the coverage of the policy, insurance exceptions, and the specific standardized forms used by the insurance company. In addition, title policies do not protect a property against property casualties such as natural disasters or theft. After the buyer has bought a property, title insurance does not protect against future obstructions.
Selecting Title Insurance
Initial reports contain exclusions and exceptions. Buyers will gain access to this report and might have little to no knowledge on how to address or define these specific exclusions or exceptions. Experienced attorneys are recommended to be on hand to advise you through this process. Because these reports are made by title insurance companies, it is important to choose a company that is highly regarded and has a stable record.