Siskiyou County Title Co.

Frequently Asked Questions

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What is an Escrow?

Buying or selling a home, or any real property, involves large sums of money and the coordination of many complex documents and services. Escrow steps in as a neutral third party to safeguard the money and documents and enable the transaction to function smoothly.
For more information, contact Siskiyou County Title Company.

What are the Common Ways of Holding Title?

This important question is one California real property purchasers ask their real estate, escrow and title professionals every day. Unfortunately, though these professionals may identify the many methods of owning property, they may not recommend a specific form of ownership, as doing so would constitute practicing law.  Please see our vesting information sheet.
For more information, contact Siskiyou County Title Company.

What are Preliminary Reports?

The preliminary report will provide you with the opportunity, prior to purchase, to review matters affecting your property which will be excluded from coverage under your title insurance policy unless removed or eliminated before your purchase.
For more information, contact Siskiyou County Title Company.

What is a title?

A title is the foundation of property ownership. It is the owner's right to possess and use the property.

Why is transferring title to real estate different from transferring the title to other items, such as a car?

Because land title is permanent and can have many owners over the years, various rights in land (such as mineral, air or utility rights) may have been acquired by others by the time you come into possession of it, even if the land has never before been built upon. So in order to transfer a clear title to a piece of land, it is first necessary to determine whether any rights are outstanding.

What is a title search?

A title search is a detailed examination of the historical records concerning a property. These records include deeds, court records, property and name indexes, and many other documents. The purpose of the search is to verify the seller's right to transfer ownership, and to discover any claims, defects and other rights or burdens on the property.

What kinds of problems can a title search reveal?

A title search can show a number of title defects and liens, as well as other encumbrances and restrictions. Among these are unpaid taxes, unsatisfied mortgages, judgments against seller and restrictions limiting the use of the land.

Are there any problems that a title search cannot reveal?

Yes. There are some "hidden hazards" that even the most diligent title search may never reveal. For instance, the previous owner could have incorrectly stated his or her marital status, resulting in a possible claim by a legal spouse. Other "hidden hazards" include fraud and forgery, defective deed, mental incompetence, confusion due to similar or identical names and clerical errors in the records. These defects can arise after you've purchased your home and can jeopardize your right to ownership.

What is Title Insurance?

Title insurance is your policy of protection against loss due to any of these problems- even a "hidden hazard"- may result in a claim against your ownership.

How much could I lose if a claim is filed against my property?

That depends on the claim. In an extreme case, you could lose your entire home and property- and still be liable to pay off the balance of your mortgage. Most claims aren't that dramatic, but even the smallest claim can cost you time, money and aggravation, and you may have to pay costs for a legal defense.

How does title insurance protect my investment if a claim should arise?

If a claim is made against your property, title insurance will, in accordance with the terms of your policy, assure you of a legal defense- and pay all court costs and related fees. Also, if the claim proves valid, you will be reimbursed for your actual loss up to the face amount of the policy.

The owner of the property has a deed. Isn't that proof of ownership?

Not necessarily. A deed is just a document by which the right of ownership in land is transferred, whatever that right might be. It's not proof of ownership, and it doesn't do away with rights others may have in the property. In addition, a deed won' show you liens or claims that may be outstanding against the title.

Wouldn't an abstract show property limitations and restrictions?

Maybe-and maybe not. An abstract is a history of the property title as revealed by the public records. Abstracts may contain errors and do not disclose "hidden hazards" that can threaten your property title if you do not have a title insurance policy.

What about an attorney's opinion?

An attorney's opinion is based on a search of the public records. So, once again, even the most exhaustive search of these records may not reveal everything. Unlike a title insurance company, an attorney is not liable if you should suffer loss because of "hidden hazards" in the title.

The owner of the property I want to purchase has lived in the home for only six months. He had a title search done six months ago. Why do I need another one?

Because the owner could, in a very short time, do many things to encumber the title. For example, he could grant easements or construct improvements that encroach on adjacent property. It is necessary to conduct an up-to-date title search to uncover any such problems.

If the builder of my home already has title insurance on the property, why do I need it again when I purchase the land from him?

A title policy insuring the builder does not protect you. Also, a great many things could have happened to the land since the builder's policy was issued. Liens, judgments and unpaid taxes for which prior owners were responsible may be disclosed after you purchase the property- causing you aggravation and costing you money.

Are there different types of title insurance policies?

Yes. Basically there are two types of policies – a loan policy and an owner’s policy. A loan policy protects only the lender, while an owner’s policy protects the owner.

What is an ALTA Homeowner’s policy?

This is a special policy for owner’s of 1-4 family residential property that provides greatly expanded coverage over the usual form of owner’s policy. For examples, coverage exists in the ALTA Homeowner’s policy for “off-record” matters such as mechanic’s liens, zoning law violations, failure to obtain building permits, removal of boundary fences and many other matters. The cost for this extra coverage is only 10% greater that the standard Owner’s policy. In addition, the ALTA Homeowner’s policy is not available on all property. Contact Siskiyou County Title Co. for details.

How much does title insurance cost?

Probably a lot less than you think, and you only pay for it once—the coverage is good as long as you own the property. The premium depends on the purchase price (or the loan amount for a Lender’s policy) and is about $900 for a $200,000 transaction. Significant discounts are available depending on the insurance history of the property and other factors. Contact Siskiyou County Title Co. for details.

Where can I get title insurance?

Siskiyou County Title Co. will provide your title insurance policy at closing.

Why does Siskiyou County Title Co. have two underwriters?

Siskiyou County Title Co. has two title insurance underwriters who stand behind the policies we issue: Fidelity National Title and Stewart Title Guaranty. Having two nationally respected underwriters enables us to provide coverage in many situations that where a company with a single underwriter couldn’t, because each underwriter seeks to avoid risk differently. Moreover, with two underwriters, Siskiyou County Title Co. can always offer a competitive rate!