THE QUIET PROTECTOR OF EVERYTHING YOU JUST BOUGHT

Endless nights doomscrolling on the internet, countless weekends of going to open houses, never listening to my advice about getting a Realtor in advance, stumbling upon your dream home, panicking, remembering about me, calling me, we make it happen, offer on a home, get accepted, survive escrow, you get the keys, the home is yours!

Then six months later someone comes to your home and claims it's there's. An old unpaid lien. A forged signature in the ownership history. An heir nobody knew about.

Sounds far-fetched right? It happens more than you'd think — especially in a city like LA with decades of complex ownership histories, older properties, and fast-moving transactions.

Title insurance is the thing that saves you from this nightmare. Most buyers sign for it at closing without really understanding what it does. This month you are going to be the one buyer who can say you know all about it.

FIRST THINGS FIRST

WHAT IS TITLE INSURANCE?

Of course, before you close, a title company takes a look at the history of the home's ownership. They look for anything that could be an issue for your ownership claim such as unpaid taxes, outstanding liens, recording errors etc. This is normal practice.

​​​​​​​Title insurance protects you if something is missed. It also protects you if a problem surfaces later that nobody could have found. Unlike every other insurance policy you own, it covers the past, not the future. One premium, paid once at closing, covers you for as long as you own the home.

 THE PART NOBODY TELLS YOU 

 There Are Two Policies And Most Buyers Only Know About One

 This is where it gets interesting.

There are actually two separate title insurance policies:

Lender's policy: this is required by your mortgage lender. This protects their investment. You pay for it, but it covers them.

Owner's policy: this is optional but this is the one that actually protects YOU.

Read that again. The policy your lender requires protects the lender, not you.

An owner's policy is typically a few hundred dollars added to your closing costs. For a home worth $1.3M in LA, that is nothing. What it buys you is the right to have the title insurance company defend your ownership and cover your losses if anyone ever challenges your claim to the property. This piece of mind is worth the world.

​​​​

WHAT IT PROTECTS AGAINST 

The Risks Are More Real Than You Think

 Here's what an owner's policy protects against:

• Unpaid liens from a previous owner's contractor, tax bill, or HOA
• Forged documents in the ownership history
• Undisclosed heirs who come forward after closing
• Clerical errors in public records
• Boundary disputes that surface after purchase
• Fraud — someone who didn't actually have the right to sell

None of these are your fault but all of them can become your problem without the right protection.

 THE BOTTOM LINE

^{PROTECT what}

^{you worked}

^{THIS HARD}

^FOR

 Buying a home isn't like spending the money you saved in your piggy bank. It's one of the biggest financial moves you can make at all price points. Title insurance is the most cost effective way to protect it. It's not glamorous. It's not something you'll think about after closing day. But if you ever need it, you will be damn glad you read this blog.