The purchaser of real estate needs protection against serious financial loss due to a defect in the title to the property purchased.
For a single, one-time premium, which is a modest amount in relationship to the value of the property, a buyer can receive the protection of a title insurance policy - a policy that is backed by the reserves and solvency of the Company. A title insurance policy will cover both claims arising out of title problems that could have been discovered in the public records, and those so-called “non-record’ defects that could not be discovered in the record, even with the most complete search.
A title insurance policy will not only protect the insured owner, but also that person’s heirs for as long as they hold title to the property. The Company will not only satisfy any valid claim made against the insured’s title, but it will pay for the costs and legal expenses of defending against a title claim.
The overwhelming majority of mortgage loans made in the United States are made by persons who are acting in a fiduciary capacity - by savings and loan associations, savings banks and commercial banks of behalf of their depositors, and by life insurance companies on behalf of their policy holders.
Because they are lending other people’s money (other people’s savings or policy-holder’s funds) these lenders must be concerned with the safety of their mortgage investments. A policy of title insurance provides a mortgage lender with a high degree of safety against the loss of security as a result of a title problem. This protection remains in effect for as long as the mortgage remains unsatisfied.
Pacific Coast Title also provides lenders with in-depth expertise on a wide variety of title related matters to facilitate the mortgage loan process.
An owner of real property whose interest is insured by an owner’s title insurance policy has the assurance that the title will be marketable when selling the property. The title insurance policy protects the seller from financial damage if the seller’s title is rejected by a prospective purchaser.
The title insurance company and the real estate agent both seek to ensure that as many purchases as possible are closed to the satisfaction of all principals in the transaction. From the broker’s standpoint, the efficient and safe transfer of title will result in client satisfaction, increased prestige, and continued business.