Why are separate owners and lenders title insurance policies issued?
Both you and your lender will want the security offered by title insurance. Your home is an important purchase, and you will want to be certain your home is yours, all yours. Title insurance companies insure your rights and interests in order to protect you against claims. Your lender is looking to insure the enforceability of their lien on your property and marketability. What is meant by “marketability”? Well, we in California have long been importers of mortgage money. Local lenders will “originate” a loan here and, often, sell it to an out-of-state investor. This investor, who may never see the property, needs to know that they have a valid and enforceable lien. Title insurance is the way of making certain. Without a current title policy, the loan is essentially unmarketable. What is the Title Search? Trained personnel investigate public records to determine the “chain of title,” which is the history of the ownership and claims upon a piece of land. By law, county records have to b
