Why Two Title Policies Are Required

Nearly every sale of a residential property involves the purchase of two policies of title insurance, an Owner's Policy and a Lender's Policy

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 will choose your property for its features and amenities. Enhancing these amenities with an Owner's Policy of title insurance from a reputable title company is just as important as the work you put into maintaining and improving your property.

For the Buyer
For most of us, buying a home requires help with financing the purchase price. Your home loan is secured by the new home you are buying. Your lender will want to make sure 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 or assigns of the loan, that their lien has priority over the liens not shown in the policy. Many lenders condition their loans upon the purchase of a Lender's Policy.

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. The title company searches the public records to identify and eliminate risks. The new buyer's Owner's Policy indemnifies the buyer against loss and provides a defense in the event of claims against the title pursuant to the terms of the policy. For a one-time charge, the buyer's Owner's Policy protects the buyer for as long as the buyer owns the property.The buyer is typically responsible for paying the one-time premium to provide the Lender's Title Policy based on the loan amount.

The premium payments are typically collected and disbursed at closing, at which time the policies take effect.

For more information, please call me: 858-603-7879

Who Pays What? A Closer Look at Closing Costs

Who pays closing costs when buying a home? Does the buyer pay everything, or do the costs get divided between buyer and seller? Is it negotiable? These are some of the costs that are "customarily" borne by Buyer and Seller during a residential real estate transaction in San Diego. Take a look...


The BUYER Can Generally Be
Expected To Pay For:
•   "Lender's" title insurance policy premium
•   Escrow fee
•   Document preparation (if applicable)
•   Notary fees
•   Recording charges for all documents in buyer's name
•   Termite inspection (defined by contract)
•   Tax proration (from date of acquisition)
•   All new loan charges (except those required by lender for seller to pay)
•   Interest on new loan from date of funding to 30 days prior to first payment date
•   Assumption or change of records fee for takeover of existing loan
•   Beneficiary statement fee for assumption of existing loan
•   Inspection fees (roofing, property inspection, geological, etc.)
•   Home warranty (defined by contract)
•   City transfer or conveyance tax (defined by contract)
•   Fire insurance premium for the first year
•   Messenger fees (if applicable)

The SELLER Can Generally Be
Expected To Pay For:
•   "Owner'sn title insurance policy premium
•   Escrow fee
•   Real estate commission
•   Document preparation fee for deed
•   Documentary transfer tax (typically $1.10 per $1,000.00 of sale price)
•   City transfer or conveyance tax (defined by contract)
•   Any loan fees required by buyer's lender (FHV,VA)
•   Payoff all loans in seller's name (or existing loan balance if being assumed by buyer)
•   Interest accrued to lender being paid off, statement fees, reconveyance fees and prepayment penalties
•   Termite work (defined by contract)
•   Home warranty (defined by contract)
•   Any judgments, tax liens, etc., against the seller
•   Tax proration (for any taxes unpaid at time of transfer of title)
•   Any unpaid homeowners dues
•   Recording charges to clear all documents of record against seller
•   Any bonds or assessments (defined by contract)
•   Any and all delinquent taxes
•   Notary fees
•   Homeowners transfer fee
•   Messenger fees (if applicable)

Please Note: The above-listed Seller and Buyer closing costs are negotiable in any transaction
and are defined by the Contract between the two parties.

Call or email me with any questions you may have: 858-603-7879 or robertmoore@coldwellbanker.com

When in La Jolla

When in La Jolla, sauntering along Coastal Blvd., be sure to drop in at Gelateria Frizzante. Great gelatos, caffe and other beverages. Excellent, cool, clean place to rest and get recharged while in La Jolla - picolo gelato (2 flavors and a cappuccino just $6.75.