What is the difference between a title search and a title insurance policy?

A title search and a title insurance policy serve two different purposes when it comes to residential real estate law in California. A title search is conducted to confirm that the person transferring the title of a property—the seller—is the legitimate owner of the property and has the right to sell it. The title search is conducted by a title company which is responsible for researching public records of the property to verify the legal status of the property. The title search may also uncover any liens, encumbrances, or other ownership claims filed against the property. A title insurance policy is an insurance policy purchased by the buyer of the residential real estate to protect against any losses that may arise as a result of an unknown lien or claim of ownership on the property. Title insurance companies provide title policies where, for a fee, the title company will guarantee that the buyer of the property has been provided with a good and valid title to the property. Title insurance policies provide the buyer with protection from any potential liability that may arise from title issues that may have been missed during the title search.

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What is the difference between a title search and a title insurance policy?

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