If you’re buying a condo in DTLA, you’ll most likely have to buy title insurance – but what is it, and why do you need it?
What is Title Insurance?
Title insurance is something that buyers have to purchase, and it all starts with a title search. During a title search, a title company looks through public records to find (and fix, if necessary) ownership issues that you may encounter with your new home.
Sometimes there are errors in filing a title, or there’s a lien against the property you intend to buy. In other situations, there are forgeries or disputes in who actually owns the property. A title search uncovers these issues.
But even the most accomplished professionals can miss things during the title search, which could result in someone challenging your home ownership down the line.
That’s where title insurance comes in.
Title insurance protects you from those ownership challenges; some policies pay your legal fees if you have to go to court to prove that you’re the property’s rightful owner.
However, that’s only with an owner’s title insurance policy. You’ll also have to buy title insurance for your lender – and that doesn’t protect you; instead, it protects your lender from issues that could cause it to lose its investment in the property.
Are You Buying a Condo in LA?
If you’re thinking about buying a condo in Los Angeles or a nearby community, call us at 213-254-7626 or contact us online.
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