What is Title Insurance Anyway?

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Well it’s Tuesday again and that means it is time for another installment in our series, Transaction Tuesday.  Grab your coffee and an a snack and come with me.

If you have purchased a home chances are you have purchased title insurance but you may not know exactly what title insurance is or why you need it.

Unlike most forms of insurance, title insurance premiums are paid just once at the time of purchase but cover your interest as long as you, or your heirs, own the property.

Generally speaking, title insurance is meant to protect an owner’s or a lender’s financial interest in real property against loss due to title defects, liens or other matters.  There are two types of policies, one that protects the lender’s interest in a property and one that protects a homeowner’s interest in a property. If you have a mortgage on a property, the lender will require a policy to protect their interest for the amount of the loan.  You can also purchase a policy, at a small additional cost, during escrow to protect your interest as a homeowner.

Escrow will order the preliminary title report which should be reviewed and approved by the buyer.  This report should specify what is covered by the title policy and what is excluded.

For more details check out these links:

http://www.stewart.com/title-insurance/what-is-tile-insurance

http://www.firstam.com/title/resources/reference-information/title-insurance-reference-articles/q-a-about-title-insurance.html

If you have questions about title insurance or anything else in the transaction process, please feel free to contact me.

See you in the neighborhood,

Karen Urata

DRE License # 01720025

B W Real Estate Group

(760) 609-0952

5-Star Award Winner  San Diego Magazine 2010, 2011, 2012

Serving Buyers and Sellers in San Diego County