Why Do I Need Title Insurance?

A Real Estate purchase is the single most important investment many people make in their lives. “The Title” or how you take ownership is insured with Title Insurance. The purpose of a Title Insurance policy is to protect the new owners interest in the property from things that happened in the past of which the new owners would have no knowledge without a title search. Problems with Title can limit your use and enjoyment of real estate, and have
negative financial consequences.

Title Insurance begins with a search of the public records for matters affecting both the property and the individuals concerned. If a discrepancy is found, the history or “chain’ of ownership is further reviewed.

Some examples of what could be disclosed in a search are:

  • Outstanding mortgages, deeds of trust, judgments, or tax liens;
  • Deeds, wills, and trusts that contain improper vesting, incorrect names or incorrect legal descriptions,
  • Incorrect notary acknowledgments;
  • Easements, CC&R’s, and Rights of other parties.

Even with all the expertise that goes into a title search and examination, hidden defects can emerge after the close of escrow causing unpleasant and costly surprises.

Examples:

  • Previously undisclosed heirs with claims against the property.
  • Forged deed that purport to affect said land.
  • Mistakes in the public records including erroneous legal descriptions or misspelling of parties names.

Title Insurance gives you the security and protection against many title issues and the potential loss of your most valuable asset, your home.

Definition of Title Insurance: “Title Insurance means insuring, guaranteeing or indemnifying owners of real or personal property or the holders of liens or encumbrances thereon or others interest therein against loss or damage suffered by reason of: a) Liens or encumbrances on, or defects in the title to said property; b) Invalidity or enforceability of any liens or encumbrances thereon; or c) Incorrectness of searches relating to the title to real or personal property.”

Southland Home Sales Stuck at 6-year Low; Median Price Rises to 6-Year High

As seen on DQNEWS.com

La Jolla, CA—Southern California home sales quickened last month compared with February, as they normally do, but remained far below average and at the lowest level for a March in six years. The median sale price rose to a more-than-six-year high, driven up by demand that continues to exceed supply in many areas, as well as a shift toward a greater share of sales in middle and high-end markets, a real estate information service reported.

A total of 17,638 new and resale houses and condos sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was up 25.7 percent from 14,027 sales in February, and down 14.3 percent from 20,581 sales in March last year, according to San Diego-based DataQuick.

For seasonal reasons sales shoot up between February and March, with that gain averaging 36.3 percent since 1988, when DataQuick’s statistics begin. Southland sales have fallen on a year-over-year basis for six consecutive months, and last month was the second in a row in which sales were at the lowest level for that particular month in six years.

Sales during the month of March have ranged from a low of 12,808 in 2008 to a high of 37,030 in 2004. Last month’s sales were 26.9 percent below the average number of sales – 24,115 – for March since 1988. Sales haven’t been above average for any month in more than seven years.

“Southland home buying got off to a very slow start this year, with last month’s sales coming in at the second-lowest level for a March in nearly two decades. We see multiple reasons for this: The inventory of homes for sale remains thin in many markets. Investor purchases have fallen. The jump in home prices and mortgage rates over the past year has priced some people out of the market, while other would-be buyers struggle with credit hurdles. Also, some potential move-up buyers are holding back while they weigh whether to abandon a phenomenally low interest rate on their current mortgage in order to buy a different home,” said DataQuick analyst Andrew LePage.

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Understanding Supplemental Property Taxes

Supplemental property taxes have been with us since 1983, but you and your neighbors still may not know what they are, what they do and how they affect you and your property. To help you better understand this confusing subject, here are the answers to some of the most frequently asked questions about supplemental real property taxes.

When did this tax take effect?

The Supplemental Real Property Tax Law was signed by the Governor in July of 1983 and is part of an ambitious drive to aid California’s schools. This property tax revision is expected to produce over $300 million per year in revenue for schools.

How will Supplemental Taxes affect me?

If you buy a new property or undertake new construction you will be required to pay a supplemental property tax which will become a lien against your property as of the date of ownership change or the date of completion of new construction.

When and how will I be billed?

“When” is not easy to predict. You could be billed in as few as three weeks, or it could takeover six months. When will depend on the individual county.  The assessor will appraise your property and advise you of the new supplemental assessment amount. At that time you will have the opportunity to discuss your evaluation, apply for a Homeowner’s Exemption and be informed of your right to file an Assessment Appeal. The county will then calculate the amount of the supplemental tax bill. The supplemental tax bill will identify, among other things, the amount of the supplemental tax and the date on which the taxes will become delinquent.

How will the amount of my bill be determined?

There is a formula used to determine your tax bill. The total supplemental assessment will be prorated based on the number of months remaining until the end of the tax year, June 30th.

Will my taxes be prorated in escrow?

No. Unlike your ordinary annual taxes, the supplemental tax is a one time tax which dates from the date you take ownership of your property or complete the construction until the end of the tax year June 30th.

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