When buying real estate in Los Angeles, you will encounter two closely related but distinct concepts: the title search and title insurance. Both are critical components of any transaction — but they serve different purposes, and understanding the difference can help you make informed decisions about how your investment is protected.
What Is a Title Search?
A title search is a thorough examination of the public records associated with a specific property. The goal is to trace the chain of ownership from the property's recorded history to the present day, identifying any liens, encumbrances, easements, covenants, or other claims that affect title.
In Los Angeles County, title searches are conducted against the county recorder's records and may also involve examination of court records, tax records, and federal filings. A complete title search will reveal:
- Current and prior ownership
- Outstanding mortgages, deeds of trust, and liens
- Judgment liens against prior owners
- Mechanic's liens from recent construction
- Easements and rights-of-way
- CC&Rs and deed restrictions
- Unpaid property taxes or special assessments
The title search produces a title report — a document that lists all the items found in the records and the "exceptions" to the title insurance policy that will be issued based on those findings.
What Is Title Insurance?
Title insurance is a policy that protects against losses arising from defects in title that existed at the time of closing but were not discovered in the title search. Unlike property or casualty insurance — which protects against future events — title insurance covers past risks that were unknown at the time the policy was issued.
Two types of title insurance policies:
Owner's Policy: Protects the buyer's equity in the property. Issued for the purchase price and remains in force as long as the buyer owns the property.
Lender's Policy: Protects the lender's interest in the property. Required by virtually all mortgage lenders.
What Title Insurance Covers — and What It Doesn't
A standard title policy covers losses arising from defects in title such as forged documents in the chain of title, undisclosed heirs with ownership claims, errors and omissions in prior deeds, recording errors, and prior liens that were missed in the title search. It also covers the cost of legal defense if a covered claim is made against your title.
However, standard policies exclude matters that a current survey would reveal (such as boundary encroachments), rights of parties in possession of the property, and matters known to the insured but not disclosed at closing. Extended coverage owner's policies offer broader protection against some of these exclusions.
Why You Need Both — And an Attorney
The title search and the title insurance policy work together. The search identifies what is in the public record; the insurance protects against what was not found. But neither replaces the judgment of an experienced real estate attorney who can analyze the title commitment, identify problematic exceptions, and take action to resolve defects before closing.
Devon Warner III reviews title reports and insurance commitments for every transaction he handles — flagging exceptions that could affect the buyer's planned use of the property, negotiating with sellers to clear title defects, and advising on whether extended coverage is warranted.
When Title Insurance Isn't Enough
There are situations where title insurance cannot fully protect a property owner — including when the policy has been denied, when the defect falls within an exclusion, or when the insured has a dispute with the title company over coverage scope. In those cases, a quiet title action may be necessary to establish clear ownership through the courts.
Warner Legal Group handles title disputes and quiet title actions throughout Los Angeles County. If you have a title issue that your insurance company is not covering — or you want to ensure a clean title before closing — contact us to discuss your situation.