In a standard California residential transaction, who typically selects the title insurance company?
Correct Answer
A) The party who pays for the title insurance policy, which varies by local custom in different California counties
In California, the selection of the title insurance company typically follows local custom and is generally made by the party who pays for the policy. In Southern California counties, the seller customarily selects and pays for the title company. In Northern California counties, the buyer often selects the title company. These are customs, not legal requirements, and are negotiable in the purchase agreement.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A transfer tax is a tax imposed by state, county, or local government on the transfer of real property from one owner to another. It is typically based on the sale price or a flat rate per dollar of consideration.
An abstract of title is a condensed history of all recorded documents and proceedings that affect the title to a specific parcel of real property. It is a summary, not a guarantee, of title condition.
Actual notice means a person has direct, personal knowledge of a fact or interest in real property. This can come from being told, seeing something firsthand, or any form of direct awareness.
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Previous Question
A property owner in Ventura County, California, signs a grant deed transferring his home to his friend but places the deed in his safe deposit box with instructions to deliver it upon his death. The owner dies two years later, and the deed is found. Under California law, is this a valid transfer?
Next Question
A California buyer purchased property via grant deed from a seller who had acquired title through a tax sale. The buyer obtained a CLTA standard title insurance policy at closing. Five years later, the original owner challenges the tax sale, alleging defective proceedings that are evidenced by irregularities in the recorded tax sale documents. Under a CLTA standard policy, what is the title insurer's obligation?