What Is Title Insurance in California?
Title insurance is one of those closing costs that confuses everyone. You are paying to protect the buyer against problems in your property's ownership history. Forged documents, unknown heirs, recording mistakes, liens nobody knew about.
In a traditional sale, title issues can delay your closing by weeks or kill the deal entirely. When you sell to Acquily, we cover title insurance costs and our team resolves title problems so the sale goes through.
What Title Insurance Actually Does
Before your sale closes, a title company searches public records to make sure you actually own the property free and clear. They look for liens, judgments, easements, boundary issues, and anything else that could cloud the title.
Title insurance protects against problems the search missed. A forged deed somewhere in the chain of ownership. An heir nobody knew about. A recording error at the county office. These things happen more often than you would think.
Two Policies, Two Bills
In a traditional sale, there are two title insurance policies.
- Owner's Policy: Protects the buyer for as long as they own the home. One-time premium at closing.
- Lender's Policy: Protects the mortgage company. Required by every lender. Another fee the buyer passes along.
What It Costs and Who Pays
For a $400,000 home, the owner's title policy costs $1,500 to $2,500. The lender's policy adds another $500 to $1,000. In Southern California, the seller traditionally pays for the owner's policy. In Northern California, the cost is typically split.
In a traditional sale, this is one more line item eating into your proceeds. One more thing to negotiate. One more bill at closing.
Title Problems That Delay Traditional Sales
Title issues are one of the most common reasons traditional sales drag on or fall apart.
- Unpaid property taxes showing up as liens
- Old mechanic's liens from contractors who were never paid
- Judgment liens from lawsuits you forgot about or never knew about
- Boundary disputes with neighbors
- Recording errors from previous sales
- Missing probate documentation
- Unreleased mortgages from refinances that were paid off but never cleared
How Acquily Handles Title Issues
Acquily works with title companies that handle complicated closings every day. If the title search finds problems, our team works to resolve them. We do not walk away because of a lien or a recording error.
We also cover all title insurance costs. You do not pay for the owner's policy, the lender's policy (there is no lender in a cash sale), or any title-related fees. It is one less cost and one less headache.
Frequently Asked Questions
What is title insurance in California?
Title insurance protects against financial loss from defects in the property's ownership history, like unknown liens, forged documents, or recording errors. It is a one-time premium paid at closing.
How much does title insurance cost in California?
For a $400,000 home, the owner's policy costs $1,500 to $2,500. In a traditional sale, the seller often pays this cost. When you sell to Acquily, we cover it.
What if there is a lien on my property I did not know about?
The title company discovers liens during the title search. In a traditional sale, unexpected liens can delay or kill the deal. When you sell to Acquily, we work with the title company to resolve lien issues and keep the sale on track.
Do I pay for title insurance when I sell to Acquily?
No. Acquily covers all closing costs including title insurance. There is also no lender's policy needed because our purchase is all cash.
Get Your Free Cash Offer