A first-time homebuyer in California asks her agent what a title search is designed to accomplish. The agent explains that the title search is conducted to:
Correct Answer
A) Examine public records to verify ownership and discover any liens, encumbrances, or defects affecting the title
A title search in California involves examining public records at the county recorder's office to verify the current ownership of the property and to discover any liens, encumbrances, easements, judgments, or other defects that could affect the buyer's interest. This search forms the basis for issuing title insurance.
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Previous Question
In California, which type of deed is MOST commonly used by an estate planning attorney when transferring real property from an individual owner into that owner's own revocable living trust?
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A buyer purchases a home in Orange County, California, and receives a CLTA standard title insurance policy. Three years later, the buyer discovers that a deed in the chain of title was forged 20 years ago, potentially voiding the buyer's ownership. The buyer files a claim with the title insurance company. How will the title insurance company MOST likely respond?