What is title insurance and why do I have to purchase it?
Title insurance protects you from defects in the title that were not disclosed or discovered when you bought your home. Title insurance is usually the highest line-item closing cost when you purchase or refinance. The only way to avoid having to purchase title insurance is to pay cash for a home. If you want to finance your home, you will need to purchase title insurance. In California, we use title companies to handle this in eastern states attorneys are used. In Northern California, the escrow and the title company are normally of the same name in other parts of the state, it can be two different companies. The two forms of title policy that will be required when you purchase a home are the owners policy and the lenders policy. The owners policy is a 1-time cost when you purchase your home, and you will have this insurance for as long as you own your home. The lenders policy insures and protects the lender from defects in the title as well. This policy is renewed whenever you refinan
