If however, this is not your debt and the lien has wrongfully been placed on your property, then you should first seek to get the creditor/lender to voluntarily release the lien. If they refuse, you could then file a lawsuit to get the lien removed and possibly obtain damages for slander of title.

Does title insurance protect the buyer?

With title insurance, the coverage protects the buyer for as long as they own—or have an interest in—the property. Similarly, the lender’s title insurance covers banks and other mortgage lenders from unrecorded liens, unrecorded access rights, and other defects.

What is the difference between a title commitment and an owner’s policy?

When it comes to a Title Commitment vs Title Insurance Policy, the one major difference is the commitment is issued BEFORE closing and all items in the Schedules must be satisfied. After the closing occurs, THEN the Title Insurance Policy is provided to the buyer(s).

Why do title insurance companies send closing protection letters?

Title insurance companies were willing to issue Closing Protection Letters to assist their agents in getting into the loan closing business by encouraging out-of-state lenders to hire them to close loans made to local residents.

What are the benefits of a title insurance policy?

A title insurance policy contains provisions for the payment of losses which result from a covered claim. The title insurance policy also covers legal fees in defense of a claim against your property. Coverage can benefit the homeowner or the bank or mortgage company (lender).

Where do title insurance companies file their rates?

Under California law, every title insurer, underwritten title company (agent for one or more title insurance companies), and controlled escrow company must file its schedule of rates, forms, and rate modifications with the Insurance Commissioner.

Who is responsible for paying for title insurance?

Depending upon the region, the premium for a title insurance policy can be paid by the buyer or the seller or split between both parties. In Southern California, the seller customarily pays the premium for title insurance. It has been the practice in Northern California that the buyer customarily pays the premium for title insurance]