Why Two Title Policies Are Required
For the Seller
The purchase of a home is one of the most expensive and important purchases most of us ever make. Your buyer will want to make sure that the property is indeed yours to sell and that there are no unknown liens, claims, or encumbrances held against the property. Your buyer chose your property for its features and amenities. Enhancing these amenities with an Owner’s Policy of title insurance issued through WFG Title Company of California is just as important as the work you put into maintaining and improving your property.
According to real estate custom and practice the seller pays a one-time premium for the new buyer’s Owner’s Policy based on the sales price of the property. WFG Title Company of California searches the public records to identify and eliminate title risks. The new buyer’s policy indemnifies the buyer against loss and provides a defense in the event of claims against the title according to the terms of the policy. For a one time charge, the buyer’s policy protects the buyer for as long as the buyer owns the property, ad under enhanced Homeowner’s Policy (HOP), forever.
You will feel confident that your buyer is receiving quality protection. You should also feel secure that your buyer will not return years later to make claims against you based on title risks which you knew nothing about at the time of sale.
Far into the future, a title policy issued through WFG National Title Company will be one of the most enduring benefits of this transaction – for you and your buyer.
For the Buyer
For most of us, buying a home requires help with financing the purchase price. Your purchase loan is secured by the new home you are buying. Your lender will want to insure that the security for their loan is protected by title insurance and that you are the owner of record. The lender’s Policy of title insurance insures your lender and any purchasers of the lender’s lien, that this lien has priority over other liens now shown in the policy. Many lenders condition their loans upon the purchase of a Lender’s Policy.
According to real estate custom and practice you, as the buyer, will be responsible for paying the title insurance premium for the Lender’s Policy on your home loan. WFG Title Company of California gives you a big break on the cost of this important coverage.
For questions regarding title policies, lender policies or buying and selling, please contact your title representative.