Title Insurance- What Is It and How To Shop It.
Real Estate Information For Oak Park, Agoura, and Westlake Village, CA
As a realtor, my fiduciary duty is to my clients, whether I am representing the buyer or the seller. I take this responsibility very seriously. I am not just a company person, pushing company affiliates. I want to make sure my clients get all the information they need to make informed decisions that are right for them, including what service providers to use. Though not usually a deal breaker, Title Insurance is one of the details of real estate that is necessary, but often not understood.
Title insurance covers claims and legal fees for home buyers and lenders if problems arise, over legal ownership of a property's title. Problems with the title may include errors or omissions in deeds, mistakes in examining records, forgery, liens for unpaid taxes or contractor's bills, conflicting wills related to the home and missing heirs who suddenly appear and claim to own the property.
There are two types of title insurance, one protects the lenders, and one for owners. If you are getting a loan, the lender's policy is mandatory, it covers their investment. The owner's policy covers the buyer for the amount of the purchase price. Usually, in our area of the Conejo Valley, and Southern California, this is paid for by the seller.
You have the right to chose your Title Insurance Company. To make that easier, you can compare prices online at http://www.clta.titlewizard.com/. When choosing a title company, best to shop early so you have the information before sign a contract. But be sure to compare apples to apples, and comparable coverage. And feel free to ask if there are any discounts available. If the home has been sold or refinanced within a certain amount of time, you may be able to get the short term rate. Some companies may offer a senior citizen's rate. If you don't ask, you won't know!
There are many complexities in buying and selling a home in today's market. Consult your professional realtor, and expert in the Agoura, Oak Park, Westlake Village, and all of Ventura County, Carol Lee.
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Carol, excellent informational post. Some times buyers don't know they have the option to buy title insurance that covers them in case that there's a problem with the title, and sometimes they even believe that they are covered by the insurance that covers the lender, just because they are paying for it. In Miami, the buyer usually pays for title insurance, but as anything else, it is a negotiable expense, particularly in this market.