When you’re investing in San Diego real estate, there are a ton of factors to consider. What’s the neighborhood like and is the kitchen big enough? Before you get ahead of yourself, you want to make sure that you’re protected when buying the home. Title insurance protects homeowners when they first buy a new property. “You’d rather have it and not need it, versus need it and not have it”.
Here are several important factors that showcase the importance of title insurance when buying a home in San Diego.
What Is Title Insurance?
What exactly is title insurance? In simple terms, it’s an insurance policy that protects you from future claims against your home. For example, someone comes knocking on your door claiming they actually own your new house due to a clerical error from years ago. Sounds like a nightmare, right? Well, that’s where title insurance comes to the rescue.
I know what you’re thinking: “Does that really happen?” It’s not common, but yes, it does. Title issues affect over 25% of real estate transactions after people buy a home. You don’t want to be part of that statistic, do you? Protect yourself and get title insurance when buying property in San Diego CA.
Protect Your Valuable Real Estate
San Diego is a great place to live. The weather and thriving community continue to keep the demand for housing high. The competitive real estate market is cutthroat since so many people want to live here. Even people not from California will purchase a vacation home in San Diego while living somewhere else. It’s all about having a slice of the real estate pie here!
That competitive edge also means that the risk of title problems is higher. Imagine buying a San Diego home that had deed fraud in the past. If that doesn’t get caught in the initial title report, you could get stuck dealing with that issue later if you don’t purchase title insurance during escrow. All first-time home buyers searching for property should get title insurance before they close. It’s the safest way to protect yourself from title issues when buying a house in San Diego.
Title Insurance Policies are Key
Here’s a real-world scenario. Imagine that you have purchased a home from a couple going through a divorce. A few months down the line, you find out that one partner didn’t sign off on the sale. Now, they’re claiming they still own a piece of your property. Without title insurance, you could end up in a costly legal dispute.
Title insurance is incredibly important when buying a San Diego house because you have zero idea of what lies underneath the surface. Protect yourself now to avoid legal issues later.
Title insurance policies protect you again things like:
- Deed fraud
- Inheritance issues
- Undisclosed heirs
- Forgery
- Liens that weren’t yours
- Other Title defects
Title Insurance Cost in San Diego
Title insurance covers this and so much more. It protects against fraud and even mistakes in public records. Unlike other insurance policies that cover future events, title insurance covers you against past events. It makes sure that everything that happened before you owned the property won’t come back to haunt you.
The cost of title insurance in California can vary. The good news is you only have to pay it once – at the time of purchasing the property. It’s not a yearly premium. Plus, you can shop around for the best price, just like you would for car insurance or a new fridge. It’s worth doing a bit of homework to get the best deal.
Lender Title Insurance Policy
Title insurance isn’t just for homeowners. If you plan to purchase a house with a mortgage, the lender will probably require you to get a lender’s title insurance. These policies will protect the lender, not you. The best way to protect your real estate investment is with an owner’s title insurance policy. Yes, these are two different policies, but they are worth it.
Is Title Insurance Required in California
Title insurance, while very important, is not required to buy a house in California. If you’re purchasing a home with a mortgage, your lender may require it. However, if you buy houses for cash, title insurance is not a requirement in California. Only experienced real estate investors should toy with the idea of not getting a title insurance policy when buying properties in CA.
Title Insurance in San Diego is Important
The next time you’re considering a property in San Diego, remember to think about title insurance. It’s not just a boring piece of paperwork. It’s peace of mind, security, and a way to protect one of your most valuable assets. If there are major title issues that hit you after closing on the property, you will regret not having insurance.