Are you are involved in buying or selling Santa Monica Real Estate ? If you are the term , Title Insurance, is probably familiar—but is it understood? What is your dollar actually paying for when you purchase a title policy?
Here is part 2 in a 2 part series “SANTA MONICA REAL ESTATE : BUYING OR SELLING? – TITLE INSURANCE – WHERE YOUR MONEY GOES”
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 percent risk elimination impossible. When claims arise, professional claims personnel are assigned to handle them according to the terms of the title insurance policy.
Title companies’ rates are filed with the Department of Insurance, and each company is required to publicly post its schedule of fees. 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 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. Most large counties have been converted to computer-based title plant systems which provide retrieval from remote locations, further speeding the process of delivering the title search to the customer. This investment in skilled personnel and advanced data processing represents a major part of the title insurance premium dollar.
Proper title plant maintenance, research, evaluation, and legal interpretation are the 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.
West Los Angeles Real Estate Group dedicates itself in getting it’s clients who are involved in Santa Monica Real Estate, the knowledge they need to buy, sell and invest in Santa Monica Houses or Condos.
Please call at 310.505.5571 or email bob_schmalz@wlaregroup.com so we can answer any question, help you find or sell in the Santa Monica Real EstateMarket.
