Page 29 - Homeowners Manual - Marin County
P. 29
Q� What are my chances of ever using my title policy?
A� In essence, by acquiring your policy, you derive the important knowledge that recorded matters have been
searched and examined so that title insurance covering your property can be issued�
When a title company provides a legal defense against claims covered by your title insurance policy, the savings
to you for that legal defense alone will greatly exceed the one-time premium�
Because title insurance companies are risk eliminators, the probability of exercising your right to make a claim
is very low� However, claims against your property may not be valid, making the continuous protection of the
policy all the more important�
Q� What if I am buying property from someone I know?
A� You may not know the owner as well as you think you do� People undergo changes in their personal
lives that may affect title to their property� People get divorced, change their wills and engage in transactions that
limit the use of the property and have liens and judgments placed against them personally for various reasons�
There may also be matters affecting the property that are not obvious or known, even by the existing owner,
which a title search and examination seeks to uncover as part of the process leading up to the issuance of the
title policy�
Just as you wouldn’t make an investment based on a phone call, you shouldn’t buy real property without
assurances as to your title� Title insurance provides these assurances�
The process of risk identification and elimination performed by the title companies, prior to the issuance of a
title policy, benefits all parties in the property transaction�
Title insurance minimizes the chances that adverse claims might be raised, and by doing so reduces the number
of claims that need to be defended or satisfied� This process keeps costs and expenses down for the title company
and maintains the traditional low cost of title insurance�
Reprinted with permission from the California Land Title Association (CLTA)�
24
