You Pay NO Title Fees When You Buy Or Sell A Property With Garry!
Title Insurance: As A Home Buyer, The Term Is Probably Familiar - But Is It Understood? What is Your Dollar Actual 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 very 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" all of those encumbrances which you do not wish to assume.
The theory is different from that of most other insurance where, for example, rates and anticipated loses are based on actuarial studies and premiums are polled on the assumption that a certain number of claims will be made. This distinction is important: title insurance premiums are paid to identify and eliminate potential risks and claims before they happen. Furthermore, title insurance involves a one-time premium, paid when you close the real estate transaction, while property, casualty and medical insurance require 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. On those rare occasions when claims do arise, professional claims personnel are assigned to handle them according to the terms of the insurance policy.
The issuance of a title insurance policy is highly labor intensive. It is based on 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 particular parcel is requested, the information is already organized for rapid and accurate retrieval.
Proper title plant maintenances, researching, evaluation, and legal interpretation are the basic foundations upon which a title policy rests. That is where most of your dollar goes, and that is the source of your protection and peace of mind as a homeowner in California.
Title Information Center
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