Home Buying in Alameda>Question Details

Homebuyer101, Home Buyer in California

How can I make sure that I would have clean title when paying cash to buy a property? Dose the title company has it give clear title after closing

Asked by Homebuyer101, California Mon Dec 23, 2013

and how could I ensure that? And do I need a title supplement to make sure all the exclusion and exception items removed or corrected before close of escrow?

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Answers

6
You ask for a Warranty title. Title should be clear for closing. You can consult with any local title company or real estate attorney for your particular case. Best of luck!
0 votes Thank Flag Link Mon Dec 23, 2013
How about if the title complany issued the owner title policy, but exclude the title cloud? I am also buying a short sale and would like to know how to make sure I have a clear title before closing?
0 votes Thank Flag Link Mon Dec 23, 2013
Some great answers below, and I just want to take a minute to contrast this to when a buyer obtains a mortgage, because we get this question all the time.

When you purchase a home (and get a loan), you obtain two title insurance policies:
*Owner's Policy: Insures you, the buyer, against claims against the title. This policy stays in place as long as you own the home.
*Lender's Policy: Insures the lender against claims. Stays in place as long as you have the loan.

In your case, you would still want to obtain your owner's policy and the title company can help you do this.

Rob Spinosa
rspinosa@rpm-mtg.com
0 votes Thank Flag Link Mon Dec 23, 2013
It is advisable to buy a policy of title insurance. You can contact the title company prior to closing to get the rates and what is covered by the policy.
0 votes Thank Flag Link Mon Dec 23, 2013
That's what title insurance is for. And the title company's job is to make sure all liens are paid off before close of escrow and if there are any issues with insurability to let you know prior to coe so that they can be cleared up first.

Issues that affect clear title are referred to as clouds on title. Over the course of the years we have come across these many times, and most times they can be resolved. However, there have been a few instances where they couldn't. That's why buying property at auction can be so risky.
0 votes Thank Flag Link Mon Dec 23, 2013
Even with cash buyers, you should write in the contract that the seller (at their cost) provides you with title insurance. It will then be a condition to close escrow and you will be protected,. If you are buying a foreclosure at auction, this will not be provided.
Good luck.
0 votes Thank Flag Link Mon Dec 23, 2013
I agreed with all said above. Title insurance is a must-have. Any type of "cloud on title" has a solution. Always keep a close communication with your title company to resolve any issues in a timely manner in order to have a smooth close of escrow.
Flag Mon Dec 23, 2013
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