Title Companies

Your title insurance protection is a permanent assurance that your ownership and use will be defended promptly against claims, at no cost to you, whether the claim is valid or not.

What is a Title Defect? A title defect is one of any number of things that could jeopardize your interest. It could be an unsatisfied mortgage, a lien, judgment, or other unrecorded claim against the property. It could arise through easements, use restrictions or other existing covenants, or it could be a hidden risk.

What Hidden Risks Does Title Insurance Protect Against?

1. Errors in the public records such as incorrect information in deeds and mortgages regarding names, signatures and legal descriptions;
2. Judgments, liens and mortgages or any other claims against the property or the seller which become the new owner's responsibility after closing, such as unpaid taxes, assessments and other debts to creditors;
3. Claims to ownership by the spouse of a former owner or by the "missing heir" of a deceased owner who did not receive his share of the estate; and
4. Treasurer - The treasurer receives and deposits in appropriate bank accounts all monies of the Association and disburses such funds as directed by resolution of the Board of Directors. The treasurer signs all checks of the association; is keeper of the books of account; cause an annual audit of the Association books to be made by a public accountant at the completion of each fiscal year; and prepares an annual budget and a statement of income and expenditures to be presented to the membership in compliance with the civil code, and delivers a copy of each to the Members.
5. Invalid deeds or other transfers by sellers who did not actually own the property or by previous owners who were minors or not mentally competent.

What Does Title Insurance Protect? There are two basic types of title insurance policies - one for the mortgage lender and one for the real estate owner. If a mortgage is to be placed on your new home or business, the lender will probably require you to purchase title insurance to protect its position as a holder of a mortgage loan, but this lender's title insurance policy doesn't protect the real estate owner. You need to purchase an owner's title insurance policy to protect your investment.

When is the Title Insurance Policy Issued? The owner's title insurance policy usually is issued after the deed to the buyer is delivered and recorded. The lender's title insurance policy is usually issued after the mortgage or deed of trust has been properly executed and recorded.