Title Insurance: As a homebuyer, the term is probably familiar - but is it understood? What is your dollar actually paying for when you purchase a title policy?
Title Insurers, unlike property or casualty insurance companies, operate under the theory of risk elimination. Title companies spend a high percentage of their operating income each year collecting, storing, maintaining and analyzing official records for information that affects title to real property. Their technical experts are trained to identify the rights others may have in your property, such as recorded liens, legal actions, disputed interests, rights of way or other encumbrances on your title. Before closing your transaction, the title company will proceed to clear those encumbrances which you do not wish to assume.
This theory is different from that of most other insurance where, for example, rates and anticipated losses are based on actuarial studies and premiums are pooled on the assumption that a certain number of claims will be made. The distinction is important: title insurance premiums are paid to identify and eliminate potential risks and claims before they happen. Medical and casualty insurance premiums, for example, are paid to insure against an unpredictable future event, knowing that risks exist and claims will occur. Furthermore, title insurance involves a one-time premium, paid when you close the real estate transaction, while property, casualty and medical insurance require regular renewal premiums.
The goal of title companies is to conduct such a thorough search and evaluation of public records that no claims will ever arise. Of course, this is impossible -- we live in an imperfect world, where human error and changing legal interpretations make 100% risk elimination impossible. When claims arise, professional claims personnel are assigned to handle them according to the terms of the title insurance policy.
As in all competitive business environments, rates vary from company to company, so you should make comparisons before deciding on a particular title company. Your real estate professional can help you do this. In addition, there are many helpful customer services provided by title companies which you and your real estate professional may find helpful to your transaction.
The issuance of a title insurance policy is highly labor-intensive. It is based upon the maintenance of a title plant, or library of title records, in many cases dating back over a hundred years. Each day, recorded documents affecting real property and property owners are posted to these title plants so that when a title search on a particular parcel is requested, the information is already organized for rapid and accurate retrieval. This investment in skilled personnel and advanced data processing represents a major part of the title insurance premium dollar.
Article by CLTA
Back to Table of ContentsServing San Luis Obispo County Real Estate
Offices in San Luis Obispo and Morro Bay, CA
Better Homes and Gardens Real Estate | Haven Properties - Broker
(805) 471-6921
Info@San-Luis-Obispo-Realty.com
San Luis Obispo Office - New location! :
Railroad Square
1880 Santa Barbara Avenue, Suite 220
San Luis Obispo, CA 93401
Morro Bay Office:
Morro Bay, CA 93442
Paso Robles Office:
Paso Robles, CA 93446
Santa Maria Office:
Santa Maria, CA 93455
CA DRE# 01935192
Dont Miss a New Listing Again!
Already registered? Login
FREE AUTOMATED EMAIL UPDATES
Sign in to take advantage of all this site has to offer. Save your favorite listings and searches – also receive email updates when listings you like come on the market for free!
*Contact Information NOT Shared*
Home | Office Listings | Open Houses | Search for Homes | Advanced Search | Map Search | Newly Listed in the San Luis Obispo Area | San Luis Obispo | Arroyo Grande | Atascadero | Morro Bay | Nipomo | Paso Robles | Avila Beach | Commercial Search | Foreclosures, REO, Bank owned, Short Sales | San Luis Obispo Lots and Land | Commercial Real Estate - City | Trilogy, Monarch Dunes Golf Resort Homes in Nipomo | Cypress Ridge Golf Course Homes - Arroyo Grande | Foreclosure Search | Avila Beach Mobile Homes | San Luis Obispo Country Club Estates - Homes For Sale | Pelican Point Avila Beach | The Villas - Avila Beach | Bassi Ranch - Avila Beach Homes for sale | Mortgage Rates | Buyer/Seller Info | Our Blog | Real Estate News!!! | Local Resources | Weather | Relocation | San Luis Obispo, the Happiest Place to Live! | Real Estate Terms | School Information | Contact Us | San Luis Obispo Housing, Homes for sale in San Luis Obispo | Real Estate in San Luis Obispo, CA, agent, broker | real estate in San Luis Obispo, Country Club Estates, Luxury | Pismo Beach and San Luis Obispo, CA homes for sale | Office Listings -... | King Fisher - Avila Beach | Pismo Beach Homes only | Pismo Beach Mobile Homes | Pismo Beach - Condos | Pismo Beach - Ocean View Homes | Indian Hill Mobil... A Bit More About Us | | Commercial County Search | Our Agents | Gated Communities | SLO County Vineyards and Wineries | SLO Community Sea... | Ocean View Homes | San Luis Obispo Golf Courses and Homes for sale | Community Searches
© 2019 A Payne International Corporation. All rights reserved.
Better Homes and Gardens® and the Better Homes and Gardens Real Estate Logo are registered service marks owned by Meredith Corporation and licensed to Better Homes and Gardens Real Estate LLC. A Payne International Corporation fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. Each franchise is independently owned and operated. Any services or products provided by independently owned and operated franchisees are not provided by, affiliated with or related to Better Homes and Gardens Real Estate LLC nor any of its affiliated companies.
©2024, Central Coast Regional MLS Pismo. All rights reserved.
This information is for your personal, non-commercial use and may not be used for any purpose other than to identify prospective properties you may be interested in purchasing. Display of MLS data is usually deemed reliable but is NOT guaranteed accurate by the MLS. Buyers are responsible for verifying the accuracy of all information and should investigate the data themselves or retain appropriate professionals. Information from sources other than the Listing Agent may have been included in the MLS data. Unless otherwise specified in writing, Broker/Agent has not and will not verify any information obtained from other sources. The Broker/Agent providing the information contained herein may or may not have been the Listing and/or Selling Agent.
Information last updated on 2024-03-28 06:30:04.