Legal Question in Real Estate Law in California
Hello. I asked the title company for written proof of protection against any mechanic liens, judgements, taxes etc. on a home that we want to purchase. So far they have only sent me a 14 page document that what I understand does not insure us against anything that is not on Public Record. This house is a new build. What document do we need from the builder,seller and title co. to make sure that nothing will surprise us later? Thanks!
1 Answer from Attorneys
Title insurance generally only insures against matters of public record. Mechanic's liens, judgment liens, and tax liens would generally be of record, because they are usually recorded with the County Recorder's Office in the county where the property is located.
With respect to title policies, there are two types. The first is called CLTA (California Land Title Association.) CLTA only insures the title as shown by "public records." Off record matters are excluded from coverage and the buyer should inspect the property to discover those defects.
The second policy is more protective, and is called ALTA (American Land Title Association). That policy insures against losses due to recorded and unrecorded defects.
I would have to know more about the underlying transaction to advise you further and more completely.
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