Looking to buy or sell a home in South LA County or North Orange County? Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so
you know what buyers will pay for your home in today's market. You may
also call us at (562) 316-2915 for a FREE home buying or selling
Today I'm here with Kristi Wry from Orange Coast Title and she's going to help answer some common questions in regards to the title of a home.
I recently heard that when a property is transferred into a trust, that it can affect how the title is held. This can affect the title depending on the type of policy the buyer received during the purchase. If you transfer your property into a living trust, you can nullify your title insurance coverage, but this is easily prevented by purchasing an endorsement from the title company, which costs about $150 depending on the property.
Title companies issue three policies, and the typical one for a homeowner-occupied home is an extended homeowner's policy. You can transfer a property into a trust without an endorsement with this particular policy. If they have a standard CLTA Owner's policy or the standard ALTA residential policy, then they would need an endorsement to change the title.
People will also sometimes add someone to a title, and Kristi's advice is to consult with a real estate professional when doing this. Once you add someone to your title, you're adding someone with anything recorded against them to your property. If they have any liens, these will be added to your property.
With this being said, title insurance policies are transferable, but only to family members such as your children. It is not transferable to brothers or sisters, or extended family. Always consult with a real estate professional before you decide to transfer the title of a home to someone.
If you have any further questions or concerns, please don't hesitate to contact myself or Kristi (714-496-3678). We would be more than happy to help you!
