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Learn About Title Insurance in San Diego, CA

What Is Title Insurance?

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Title insurance protects the interests of both property investors and their lenders. This coverage is designed to prevent financial loss during a property sale in the event that the current or former owners are not or were not legally authorized to sell the property. Unless the current owner of the Irvine house for sale has full and legal ownership, this person cannot transfer a title that’s free and clear to you.

Title Reports

Before title insurance is bound, title companies conduct intensive investigations to know more about the history of ownership and to identify any challenges or potential challenges to ownership that currently exist. During these efforts they’ll review all judgments, deeds, and liens involving the property. Medical and utility judgments, mechanics liens, and unreleased mortgage liens are among some of the most common defaults. Once these investigations are complete, title insurance companies draft comprehensive reports detailing any title defaults that were found. All liens that are mentioned within the report will be recorded as exceptions to the insurance, meaning that lien-related losses will not be covered by the buyer’s policy.

How Title Insurance Differs from Other Forms of Coverage

Unlike home or automobile insurance, title insurance only entails a one-time payment and does not have recurring premiums. This is a fee that you’ll pay at the time of closing and it will cover the costs of the title report, the related investigations, and the required insurance. A title insurance policy will cover the legal fees and other losses that result from problems not identified in the title report. These can include unprobated wills, deeds from companies that are now defunct, missing or undisclosed heirs, errors in recording or indexing public records, and the failure of spouses to take part in property conveyances.

Why You Need Title Insurance

Securing title insurance is a necessary step in the home buying process, especially if your purchase is being financed by a lending institution. Should problems related to the property title arise, both you and your lender could face extensive legal fees and even property loss. Although few buyers ever file title insurance claims, when these issues do arise, this coverage can significantly reduce their impact.

If you’re still looking around at homes for sale in Irvine, we can help. Our experienced real estate agents can help you prioritize amenities, understand home loan terms and conditions, and guide you as seamlessly as possible through the process. Reach out today at (714) 454-6304.

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