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Escrow, Title, Taxes and Closing Costs

Home > For Buyers > Escrow, Title, Taxes and Closing Costs

Escrow
Title
Closing Costs
Taxes

What is Title Insurance?

Title insurance is a contract of indemnity which guarantees that the title to the property is as reported. If its not as reported, we will reimburse the buyers for actual loss or damage under the condition speicified in the policy. the title policy covers the insured for their loss up the amount of the policy.

Title insurance assures owners that they are acquiring marketable title. Title insurance is designed to climinate risk or loss caused by defects in title from the past. Title insurance provides coverage only for title problems which were already in existence at the time the policy was issued.

Title Search

Fidelity National Title works to eliminate risks by perofrming a search of the public records or through our own plant. The search consists of public records, laws and court decisions pertaining to the property to determine the current recorded ownership, any recorede liens or encumbrances or any other matters of record which could affect the title to the property. When a title search is complete, fidelity issues a preliminary title report detailing the current status of title.

A preliminary report contains vital information which can affect the close of escrow: ownership of the subject property, how the current owners hold title, matters of record that specifically affect the subject property or the owners of the property, a legal description of the property and an informational plat map.

What Does a Title Policy Cover?

Not all risks can be determined by a title search, since certain things such as forgeries, identity of persons, incompetency, failure to comply with the law, or incapacity cannot be disclosed by an examination of the public records.

The preliminary title report is an offer to insure under certain situations, the title policy is a contract that gives coverage against such problems.

The California Land Title Association (CLTA) is the standard policy of title insurance in california.

What Does CLTA Cover?

A forged signature on the deed.

Mistakes in the interpretation of wills or other legal documents.

Deeds delivered without the consent of the grantor.

Deeds and mortgages signed by persons not of sound mind, by monors or by someone listed as single but is in fact, married.

Impersonation of the real owner.

Errors in copying or indexing.

Falsification of records.

Undisclosed or missing heirs.

Recording mistakes.

With regard to lenders coverage it covers:

	The priority of the insured mortgage
	The invalidity or unenforccability of the insured assignment
	The invalidity or unenforceability of the lien of the insured morgage on the title.

	Someone else owns a recorded interest in your title
	A document is not properly signed, sealed, acknowledged or delivered
	Forgery, fraud, duress, incompetency, incapacity or impersonation
	Defective recording of any document
	Unmarketability of title
	Mechanic's lien protection for work or materials done prior to the policy date except where the insured has agreed to same
	Forced removal of the residential structure because it extends onto other land, an easement shown as an exception to the policy, any unrecorded subsurface easement, or it violates an enforceble CC&R or zoning ordinance
	Unrecorded liens by the homeowner's association
	Others have rights arising out of leases, contracts, or options
	Someone else has an easement on your land
	Plain language
	Building permit violations (from prior owners)
	Subdivision map coverage
	Restrictive covenant violations (from prior owners)
	Enhanced access feature
	Map inconsistencies protection
	Minerals extraction structure damage
	Post policy encroachment
	Post policy forgery
	Living trust coverage
	Automatic policy increase
	Post policy adverse possession
	Post policy easement by presecription
	Encroachment of boundary walls or fences

Concurrent Co-Ownership Interests

	Tenancy in Common	Joint Tenancy	Community Property	Partnership Interest
Parties	Two or more persons or entities (can be husband and wife).	Two or more persons (can be husband and wife) provided the tenancy is properly created.	Only husband and wife.	Only partners (more than one).
Division	Ownership can be divided into any number of interests equal or unequal.	Joint tenants have one and the same interest.	Ownership interest is equal.	Ownership interest is in relation to interest in partnership.
Title	Each co-owner has a separate legal title to his/her undivided interest.	There is only one title to the whole property.	Title in the "community." Each interest is separate.	Title in the "partnership".
Possession	Equal right of possession.	Equal right of possession.	Both co-owners have equal possession.	Equal right of possession but only for partnership purposes.
Conveyance	Each co-owner's interest may be conveyed separately by its owner.	All joint tenants must joint in any conveyance document. Conveyance by one co-owner without the others breaks his/her joint tenancy.	Real property requires written consent of other spouse, and separate interest cannot be conveyed except upon death.	Conveyance of partnership property is generally defined in the partnership agreement. No partner may sell his individual interest in the partnership without the consent of the co-partners.
Death	On co-owner's death, his/her interest passes by will to his/her devisees or his/her heirs subject to administration by the local Superior Court. No survivorship right.	On co-owner's death the entire tenancy remains to the survivor. This right of survivorship is the primary incident of joint tenancy.	On co-owner's death 'A belongs to survivor in severalty 'A goes by will to decedent's devisee's subject to administration by the local Superior Court.	On partner's death his/her partnership interest passes to the surviving partner pending liquidation of the partnership. Share of deceased partner then goes to his estate.
Successor's Status	Devisees or heirs become tenants in common.	Last survivor owns property in severally.	If passing by will, tenancy in common between devisee and survivor results.	Heir or devisees have rights in partnership interest but not in specific property.
Creditor's Rights	Co-owner's interest may be sold on execution sale to satisfy creditors. Purchaser at execution sale becomes a tenant in common.	Co-owner's interest may be sold on execution sale to satisfy creditor. Joint tenancy is broken purchaser at execution sale becomes a tenant incommon.	Property of community is liable for contracts of either spouse which are made after marriage and prior to or after January 1, 1975. Co-owner's interest can't be sold separately, whole property may be sold on execution to satisfy creditor.	Partner's interest cannot be seized or sold separately by his personal creditor but his share of profits may be obtained by a personal creditor. Whole property may be sold on execution sale to satisfy partnership creditor.

Escrow | Title | Closing Costs | Taxes

Liz Stolz McCarthy

Tel : 415-250-4929

E-mail : Liz@BayAreaRealEstateSales.com