Title Services

 

Title Search Basics

Title searches start with the most recent deed, searching the grantee's name (the person now holding title) backwards in time, until the deed when the grantee acquired the property is located.

That grantor's name is then searched backwards in time in the grantee's book to find when the grantor acquired title as a grantee.

This process continues, and over time, the property description involves larger and larger parcels of land.

Eventually, the searcher finds the U. S. Patent.

 

Other Factors Affecting Title

Deeds establish chain-of-title, but sometimes those chains are broken. In addition, title searchers also look for reconveyances (proof that the encumbrances are paid off), and they look for easements, rights-of-way, CC&Rs, other elements affecting title to the property. Here are more records that are searched to piece title together:

• Marriage records

• Death Certificates

• Tax Sales

 

Title Insurance Coverage

Depending on the title company, consumers can choose among a variety of options, but the top three choices are Owners, Lender's and Extended Coverage.

Basic Owner's Title Policy Coverage:

• Clear title to the property

• Incorrect signatures on documents

• Forgery, fraud

• Defective recordation

• Restrictive covenants

• Encumbrances or judgments

Basic Lender's Title Policy Coverage:

• Mechanic's liens and unrecorded liens

• Unrecorded easements and access rights

• Defects and other unrecorded documents

• Extended Owner's Coverage

• Building permit violations from previous owners

• Subdivision maps

• Covenant violations from previous owners

• Living trusts

• Structure damage from mineral extractions

• Variety of encroachments and forgeries after title insurance is issued

 

Who Pays For Title Policy Insurance?

This depends on your local custom.  It can differ from county to county, but it is also negotiable in the purchase offer.  Sometimes sellers and buyers split the fee for the owner's policy.  Typically, the buyer pays for the lender's coverage.

 

How Long Are Title Policies Good For?

Forever, theoretically. If you are planning to resell the property within a couple years, ask your title company about "binder" coverage. Most companies will sell you a binder policy for 10% more. A binder is good for two years, often can be extended beyond that time, and the fee charged for the new buyer's policy will be the difference between what you bought the property for and the price at which it sold. In other words, you will get a credit for the amount of coverage you purchased under your own Owner's Title policy.

 

How Often Are Title Policy Insurance Premiums Paid?

Once. The fee is due when you buy. You will never pay it again. Title policy insurance is the best insurance policy you can ever buy.