What is title insurance?

Title insurance insures the homeowner (and/or lender) against losses due to defects in title, which were unknown when the policy was issued. This insurance is effective as of the policy's inception date and covers defects arising prior to ownership. The policy terms outline which risks are covered.  The title company will pay claims on covered losses (within policy limits).

Why does a Realtor need a relationship with a title representative?

In any business there are different philosophies as to whether you should divide your business or if most of your business should be with one firm. As a real estate agent, I often need tax data, permits and other such documents.  I work with a title representative and she has been able to provide these documents to me at no cost.   In turn, most of my title business is directed to her and her firm. And, as most of my client’s business is directed to her firm, I am considered an “A” client. 

Not too long ago, I sold a home and the buyer had a claim with the title company.  The title company denied the claim.  Due to my long term relationship with the title company, I was able to have the declination reversed so that the buyer was insured.

My title rep has in the past bought me lunch, supplied me with permits, tax data and other such documents. She has provided refreshments at a (broker’s) open house but at the same time, she was able to network with other Realtors.  Due to the passage of Senate Bill 133  my title rep will no longer be able to supply me with permits, buy me lunch (which I think was at most two lunches in the past year at Glendale’s Far Niente restaurant), or host a broker’s open house.  BUT the lender’s and escrow officers that I work with may continue to perform these functions.