Title services
Title insurance, explained
Title insurance protects against problems with ownership that come from the past, like a forged signature, an old lien or a records error. Here’s how it works.
Two policies, two jobs
| Feature | Owner’s policy | Lender’s policy |
|---|---|---|
| Protects | You, the buyer | The lender making the loan |
| Required? | Usually optional | Usually required by the lender |
| Coverage amount | Typically the purchase price | Typically the loan amount |
| Lasts | As long as you or your heirs own the property, under its terms | Until the loan is paid off |
A lender’s policy protects only the lender. If a covered title problem surfaces after closing, an owner’s policy is what protects your own stake in the home.
What a title search looks for
Before a policy is issued, our title team searches the public record for the property and the people on title.
- Ownership. Who holds title now, and how it passed to them (the chain of title).
- Liens. Deeds of trust, tax liens, judgments and mechanic’s liens that must be paid or released.
- Easements and restrictions. Utility easements, access rights and recorded CC&Rs.
- Legal description. The exact land being sold, so it matches what everyone thinks they’re buying.
- Pending matters. Notices of lawsuits (lis pendens), bankruptcies and foreclosure filings.
The preliminary report
What we find goes into a preliminary report, or “prelim.” It shows who owns the property, the items that would be excluded from coverage, and the requirements to clear before closing, such as paying off a loan or recording a document. A prelim reports the terms we’d use to insure. It isn’t the policy, and it isn’t a commitment to insure.
We read every prelim with one question in mind: what could slow this closing down? If something needs attention, your title officer will call and explain it in plain English: what’s needed, who signs it, and why. [verify]
What it can protect against
- Forged or fraudulent documents in the chain of title
- Undisclosed liens or judgments against a prior owner
- Errors in public records or in the legal description
- Claims from unknown heirs
Coverage depends on the policy and its endorsements, and every policy has exceptions and exclusions. Read yours, and ask your title officer about anything that isn’t clear.
Common questions
Is title insurance required?
Most lenders require a lender’s policy when they make a loan. An owner’s policy is usually a choice, and many buyers choose it because it protects their own investment.
How long does an owner’s policy last?
Generally for as long as you or your heirs own the property, under the policy’s terms. Your title officer can explain the details for your policy.
Does it cover everything?
No policy covers everything. Each policy lists exceptions and exclusions, and they’re worth reading. Your title officer can walk you through them.
What if something shows up on the prelim?
Most items on a prelim are routine, like an existing loan that gets paid off at closing. When something needs work, your title officer will tell you what’s needed and who needs to sign.
This is general information, not legal advice. For questions about a specific property, talk to your title officer.
Questions about a prelim?
Call and we’ll connect you with a title officer.