What is title insurance and who pays for it in California?

Title insurance is a one-time premium paid at closing that protects the owner and the lender against financial loss from title defects: old liens, judgments, easements, or errors in the public record, plus the legal costs of defending a claim. There are two policies: the owner's policy protects you, and the lender's policy protects your mortgage lender, which virtually every lender requires. In California the cost typically runs about 0.5 to 1 percent of the purchase price, and who pays is negotiable by regional custom: in Southern California the seller usually pays for the owner's policy while the buyer pays for the lender's policy. Julian Cesar reviews the title and escrow line items on every transaction so you know exactly what is covered and what it costs before you sign.