Do I Need Title Insurance?

There are many things to take care of when purchasing residential property. Home buyers in Irvine, California understand that whether purchasing a single-family home, a condo, duplex or loft, part of the process involves title insurance. However, many Irvine, California residents have no idea what title insurance is, how it works or if they need it, which is what we're going to clarify.
Title Insurance

So, in order to understand if a home buyer needs title insurance, a clear understanding of what title insurance is. When purchasing a home, title insurance provides protection for both the home buyer and the lender in the event the title isn't clear, in other words, if the seller is not the only claimant to the title. That means if the title the seller presents to the home is owned by interests other than the seller.

There are many different reasons a seller's title may not be clear. This can happen for any number of reasons. For example, the previous homeowner may have had work done on the house and then not paid the contractor. Perhaps the seller or previous seller owed back taxes and the IRS put a lien on the house, preventing a clear title.

Title insurance is purchased to restore both the lender and buyer to their pre-purchase status in the event the home title is not clear. Considering that home buyers often put down 20% of the purchase price of the home and lenders have considerable costs involved in preparing and granting home loans.

How to Purchase Title Insurance

The process of purchasing title insurance is normally initiated and handled by your realtor, loan agent or attorney. There are five title insurance underwriters in the United States and generally, one will be selected for you. The cost of title insurance varies, but home buyers can expect to spend approximately $1,000.00. While this may seem like a tremendous sum, it pales in comparison to losing everything put up to purchase the home, or to be in the home and then find that you don't own it. While it may be left to the home buyer to decide, some lenders require title insurance as part of the lending process.

Normally a title search can catch issues, but in rare cases, homeowners can find themselves already settled in the home they shouldn't have been allowed to purchase because of title issues. Irvine, California residents choose to be protected rather than lose their investment when the title search finds an unwanted lien holder.

Most home buyers are happy to have the "what if" covered. Irvine, California residents prefer to be covered title insurance, protecting their futures and their investment.

Further Details available at www.irvineresidentialliving.com