Title Insurance
Title Insurance insures you that liens placed against the prior owners of the property, or documents that will restrict your use of the property, have been fully disclosed.

At your closing all possible impediments that would prevent clear title from passing when you are disclosed in the Preliminary Title Report. This report will list any liens, restrictions, and interests of others of record.

When reviewing the report check the ownership rights or interest you will be acquiring. The most common form of ownership interest is 'fee simple' or 'fee,' which is also the highest form of interest an owner can have in real estate.

You may also have to consider interests of third parties, such as easements granted by prior owners, which limit use of the property. Some buyers attempt to clear these unwanted items prior to purchase. A list of standard exceptions and exclusions not covered by the title insurance policy is also attached. This section includes items the buyer may want to investigate further, such as laws governing building and zoning.

After the closing is completed and your interest in the property is recorded you will be issued a title insurance policy.

What Is Title Insurance?
Title Insurance insures owners are acquiring marketable title to the property. Unlike casualty insurance policies which insure against future events, title insurance is designed to eliminate risk or loss caused by title defects from past events. Title insurance provides coverage only for title problems that were in existence at the time the policy was issued.

A title insurance policy is a contract of indemnity that guarantees that the title is as reported. If it isn't, and the owner is damaged at a later date, the title policy covers the insured for loss up to the face amount of the policy.

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What Is A Title Search?
After receiving your purchase and sales agreement, our title examiners conduct an extensive and thorough search of public records to verify the existing owner and determine what, if any liens and/or restrictions encumber the property. The results of the search are transcribed to the Preliminary Title Report.

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What Is A Preliminary Title Report?
A Preliminary Title Report contains the public information on the property purchased our title examiners researched. It may affect the willingness and the ability of the parties to complete their transaction. Information includes ownership of the subject property, the manner in which the current owners hold title, matters of record which specifically affect the subject property or the owners of the property, as well as a legal description of the property and an informational plat map.

The Preliminary Title Report indicates the type of title insurance to be offered by the title company, and the exclusions and exceptions from coverage based on the type of title insurance policy the company intends to issue. Exclusions and exceptions can include items such as: recorded deeds of trust, easements, agreements, and covenants conditions and restrictions, commonly referred to as CC&Rs.

What Should Be Looked For In A Preliminary Title Report?
As legal counsel, we will review the Preliminary Title Report as soon as it is issued, paying particular attention to the following items:

• Verifying the ownership vesting by insuring that the names on the report are the same as the names on the purchase contract. Sometimes the name of an unexpected owner will appear (i.e. a previous spouse or relative who died), and corrective documents may be required.
• Verifying that the property address, the plat map, and legal description all match. An owner could own two properties adjacent to, or across the street from, each other, causing confusion in identifying the correct property.
• Reading the informational notes for pertinent items about the property, such as: transfer taxes, monument fees, homeowners' association fees, etc.
• Carefully reviewing the exceptions and easements. Be sure the CC&Rs or existing easements do not interfere with the possible future plans. For example, an easement across the property could derail any expansion plans a new buyer may desire to complete.
• Utilizing our one stop concept enables our attorneys to detect title defects early in the process so that they are promptly resolved.

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What Is Covered?
Not all risks are eliminated by a title search, since certain "hidden defects", such as forgeries, identity of persons, incapacity, incompetency, and failure to comply with the law, cannot be disclosed by an examination of the public records. While the Preliminary Title Report is an offer to insure under certain circumstances, the Title Insurance Policy is a contract, providing coverage against such "hidden defects."

In addition to indemnifying the insured against losses which result from a covered claim, the policy also provides for legal fees and defense for future claims against the property.

Extended owners' and lenders' policies of title insurance provide broader coverage and are available through the American Land Title Association (ALTA). Coverage is extended to certain matters that are "off-record", but which are generally discoverable by an inspection of the property or by questioning the parties in possession. These include:

• Unrecorded liens and encumbrances
• Unrecorded easements
• Unrecorded rights of parties in possession
• Encroachments, discrepancies, or conflicts in the boundary lines

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