How Should I Take Title    

There are several ways that people hold Title to property.  How you hold Title to your home has far-reaching income tax and legal ramifications that you cannot afford to overlook.  How you hold Title can affect what will be done with the property after you die, and how much taxes will be owed when your survivor eventually sells. 

Most property owners hold Title in one of four ways:  Sole Ownership
Tenants in Common
Joint Tenancy
Community Property. 

Remember California is a community property state and the advice others give you may not be correct for our state.  I suggest you ask questions of your accountant, lawyer or the escrow officer.  By setting it up correctly now could save you lots of money and headaches down the road.  Title is something that could be changed during ownership under certain situations.  While on the subject of advice from others, I must warn you that every person's situation is different.  Also today is probably a much different market than when the advice giver participated.  Procedures, customs, and laws have changed.         

                                            Understanding Title Insurance    

1.      It protects your ownership right to your home both from fraudulent claims against your ownership and from mistakes made in earlier sales, such as mistake in the spelling of a person's name or an inaccurate description of the property.   

2.      It's a one-time cost usually based on the price of the property.   

3.      There are both lender title policies, which protect the lender, and owner title policies, which protect you. The lender will probably require a lender policy.   

4.      Discounts on premiums are sometimes available if the home has been bought within only a few years since not as much work is required to check the title. Ask the title company if this discount is available.    

5.      Some of the things a title search uncovers are any unpaid taxes or mortgages, judgments against previous owners, easements, and many other court actions or recorded documents, which can affect title to real estate.            
AND Most Important YOU ONLY PAY ONCE:           Unlike other forms of insurance, the original premium is your only cost as long as you own the property.  There are no annual payments to keep your Owner's Title Insurance Policy in force. 

1.    The Lender's Policy - Protects the lender against loss due to unknown title defects or other matters that affect title and are not known at the time of sale.  This policy is mandatory when there is a loan.   

2.      The Owner's Policy - Protects the buyer from flaws in the title. This policy is also mandatory.