A Simple Guide for California Homebuyers

Buying a home comes with a long list of things to think about—your loan, inspections, appraisal, homeowners insurance, escrow, moving…and somewhere along the way, someone mentions title insurance.

But what exactly is it?

Title insurance helps protect against certain covered problems involving the ownership and title to your property.

What Does “Title” Mean?

When we talk about the title to real estate, we’re talking about your legal ownership rights to that property.

Before a real estate transaction closes, a title company researches public records related to the property. The purpose is to identify matters that may affect ownership or someone’s rights or interests in the property.

Depending on the property, the title search may reveal things such as:

• Existing liens
• Recorded deeds
• Easements
• Judgments
• Unreleased loans
• Ownership or vesting information
• Other recorded matters affecting the property

When something unexpected appears, the title and escrow teams may need to address it before the transaction can move forward.

Why Is Title Insurance Different?

Most insurance protects you against something that might happen in the future.

Title insurance is different because it can protect against certain covered title issues that already existed before you purchased the property but were discovered later, subject to the terms, conditions, exclusions and exceptions of the policy.

There are generally two types of title insurance policies involved in a financed real estate transaction: an owner’s policy, which protects the homeowner’s insured interest, and a lender’s policy, which protects the lender’s insured interest.

Why Does Your Title Team Matter?

Most transactions move through title without major problems.

But when an issue does arise, experience, communication and knowing where to look for answers can make a big difference.

I’ve been serving the real estate community since 2000, and one of my favorite parts of what I do is helping Realtors, lenders, buyers and sellers better understand the title side of their transactions.

Because when questions come up, you want a team that’s ready to help find answers.

Have a title question about a property or transaction? Reach out to me. I’m always happy to be a resource.

Kambria Minton
Title Insurance Representative | Fidelity National Title
Serving Southern California since 2000