Title Insurance: What It Is and Why You Should Get It

All play and no work make for a very uninformative real estate blog! Today I'm returning to the topic of understanding Escrow and buying or selling a property, and this post will be focusing on title insurance. It's a one time purchase that can be so important and vital to protect your property and investments, and should really never be skipped.

First, a history lesson! In the early 1800s, there was no title insurance, it was up to the buyer to do the research and make sure that the person they were buying the title from was actually the owner, and that there were no liens or other past heirs that might have any claim over the title of the property. If they were incorrect and someone else were to sue them for the property, they bore sole responsibility for proving they were the rightful owner in court, including all the expenses there of. In 1868 there was a case by the name of Watson V. Muirhead, where a seller was given false information by a lawyer and told the buyer that the title was clear. When the buyer was then informed that there was a lien on the property from before he purchased the title, he sued. However, the courts ruled that when given false information from a professional, the seller was not responsible, and thus a precedent was born for title insurance. In 1874 Pennsylvania passed an act that allowed for title insurance to be purchased to protect title ownership.

Okay, enough with the dates! With all of that information thrown at you, I'd like to break it down and really put it into clear language. Before you purchase title insurance, a title professional will throughly search documents that span over a long period of the properties history to make sure that there are no liens on the property, for example, if a former contractor has a claim that they did work that was never fully paid for. They also look for any mistakes or forgeries in the past paperwork, making sure there is a clear line of ownership, and that there are no missing heirs from past owners that may make a claim to the property. However, about 1/3 of title searches miss something, and that is the key reason behind why title insurance is a must have for buying a property. If something in the future comes up, your title insurance protects you from all costs dealing with fighting in court for the title, for the entire time that you OR your heirs own the property.

Now, before you go and purchase your title insurance, there are a few things to keep in mind. Does the state you are purchasing in have regulated pricing for title insurance companies? If so, there are some questions to ask and some information to look for. It is still possible to price match even when the prices may be fixed, because there could be other processing fees involved before the final price is reached. Sometimes that price can be a 20% difference when comparing companies. Do your local research to find a fit thats best for your needs.

You will also need to know how much coverage you will need, most cases being a standard basic coverage. There are other more comprehensive options, but those are mostly for commercial property purchases. Do you know who is purchasing the title insurance? Sometimes, if you're paying for both the buyers and sellers title insurance you can get certain discounts for doing so. You also have the right to select your own title company, so never let someone tell you that you have to go with a particular company.

And as always, your realtor can give you any advice you may need, and if you have uncertainties, they should help make you feel confident in every aspect of your purchase. I hope this helped explain a little bit more and provide clarity to you in the business of buying a home. Happy buying!

~ Kelly Cranmer Valadez

Storm A Coming!

For those of you who know me personally, I'm a big worrier. I like to think about everyone I love at all times, and make sure that they're taken care of and safe. The storm that is heading our way the middle of this week is expected to be pretty severe, with high wind warnings and possible flash flooding and power outages. With that in mind, I wanted to take a moment to remind everyone about a few things to keep around the house, should something happen.

If you're caught at home and you have to wait it out, you'll need to have a few things on hand to make sure that you can last until help comes or the danger subsides. These things include, but are definitely not limited to:

    Candles
    Flashlights
    A variety of battery sizes
    Battery powered radio
    Canned or dried foods (Manual can openers!)
    Bottled water
    Freshly stocked first aid kit
    Blankets
    Baby items
    Cash (in case ATMs are out of order and you need to leave)

And it's also a good idea to make sure your car has a full tank of gas, you never know if you have to evacuate, stopping for gas can be the difference of making it to safety or not.

If you're caught out in the storm, remember that even a few inches of water can sweep your car away in the right conditions, so being more cautious is always best. Having a first aid kit in the car can really help save you if you're trapped in your car. Try also to keep a few coats, some dried fruits and nuts, and a few bottles of water. A flashlight should be kept in the glove compartment at all times anyway, they're a must have tool. A lighter or some matches would also be a life saver to keep in case of emergency too.

Take the time to be over prepared now, rather than under prepared when or if the trouble strikes. It's what I suggest to all of my close loved ones, and I hope you can stay dry and safe this coming stormy season!
~Kelly Cranmer Valadez

Holiday Cheer is Gearing Up

Today I just wanted to reflect on what a great holiday and weekend I had, and how blessed I am to live here in Marin. There were so many things going on, it was impossible to see them all, but I did get to see a lot of the fantastic holiday events that are starting and going on until Christmas or beyond.

St. Francis Sugar Tree

The Hospice by the Bay wrapping charity event was a success, I got to wrap quite a few presents and meet great people, so definitely a wonderful day helping others. I highly recommend volunteering for this organization, they do great work and your support really turns into helping those in need.

The Fairmont Hotel Christmas Tree

Also this weekend, I went into the city to see Union Square and enjoy all the beautiful decorations that are going up for Christmas. The tree is spectacular this year! And the St. Francis Sugar Tree is really a treat to see. It really does look too delicate and gorgeous to eat. After that we went to the Buena Vista Cafe, something I do every year to get in the Christmas Spirit, and had an Irish Coffee. It's my favorite treat to relax with!

Another stop that is really beautiful to see is the Fairmont Hotel's decadent displays over on California street. The main tree is breathtaking, and they've taken out all the stops in the lobby and outside of the hotel. They even have a Christmas list nook where the kids can write to Santa and put it in a mailbox, (that apparently has a very fast delivery time to the North Pole). Right behind it is one of the most elaborate gingerbread houses you'll ever see, you can even go inside it! It's 22 feet tall and 23 feet wide, with thousands of gingerbread bricks and over a ton of royal icing and other candy embellishments. They're famous for this beautiful and astounding edible display, and it took over 3 weeks to finish! The opening party on Saturday was a lot of fun, you can go to their website to see their upcoming events, of which they have quite a few planned throughout the month.




It was a great way to spend the weekend, and it's wonderful that it's so close to Marin. There are so many things for a family to go and do in San Francisco this holiday season, from seeing Santa at the Westfield Mall, or ice skating at the Safeway ice rink. Why not bring the kids and have a blast?

Happy Holidays,
~Kelly Cranmer Valadez