Both you and your lender will want the security offered by title insurance. Title insurance companies insure your rights and interests in order to protect you against claims. Your lender is looking to insure the enforceability of their lien on your property and marketability. Well, we in California have long been importers of mortgage money. This investor, who may never see the property, needs to know that they have a valid and enforceable lien.
Title insurance is the way of making certain.
Without a current title policy, the loan is essentially unmarketable. Risk elimination can only be accomplished after an intensive period of risk identification. Title companies spend a high percentage of their operating revenue each year collecting, storing, maintaining and analyzing official records for information that affects title to real property. The issuance of a title insurance policy is highly labor-intensive. Each day, recorded documents affecting real property are posted to these plants so that when a title search on a particular parcel is requested, the information is already organized for rapid and accurate retrieval.