Who's responsible for title insurance? In Northern California, the buyer typically pays for both policies. It is, however, a matter that is covered in the contract between the seller and buyer and is negotiable, as is everything else.

Leave no doubts! Buyer's get the property inspected. Some inspections become mandatory by the lending company. Most lending companies require, at least, a termite and a roof inspection before they will loan on the property. Typical inspections include pest (termite) inspection, contractor inspection (includes electrical, plumbing, heating systems), roof inspection, swimming pool inspection, foundation and soil inspection. These inspections may reveal defects which were not evident to the buyer, and which were not disclosed in the seller's disclosure statement. Depending upon the terms of the Deposit Receipt, the buyer may request the seller to either fix the defect, or provide funds so that the buyer can correct the defect after close of escrow.

What happens if the title is not clear? It does not mean the sale is off! The current owner may have to pay a lien, judgment, etc. in order to clear the title for sale. Escrows may be collected in closing and held by the title agency until the defect can be remedied.

When Refinancing a home, title insurance is needed! Title insurance is the only practical way to provide the assurance investors demand and to ensure that the mortgages backing these securities are valid and enforceable.