Debbie Kayoda
Real Estate for Real People
(866)526-9889
MYSTERIES OF ESCROW AND TITLE - SOLVED
The title and escrow processes can be the most confusing and mysterious aspects of the real estate transaction. When I handle a real estate transaction, I like my clients to know what's going on at all times. The following are provided to help in that respect.
THE ESCROW PROCESS 
Escrow is a service that provides a means of protection in the handling of funds and documents. Escrow enables the buyer and seller to transact business with each other through a neutral party, thereby minimizing their risk.
In the escrow, all parties involved give their instructions (in writing) to this neutral intermediary, the "Escrow Holder," whose duty is to assure that no funds or property will change hands until all terms have been carried to completion. If one of the entities involved has not, will not, or cannot provide the documents/reports/funds required, the Escrow Holder is unable to consummate the transaction.
A competent escrow officer is a must for any real estate transaction. My network of service professionals includes the best in the business - Tiempo Escrow II. To visit their web site and get an overview of the escrow process, click here:
TITLE & TITLE INSURANCE
Ways to Hold Title-California 
Please be advised that the method of holding title can have legal and tax implications. It is advised that you consult the proper experts in these areas when making any decisions. These summaries are a few of the more common ways to take title to real property in California. For a more comprehensive understanding of the legal and tax consequences, appropriate consultation is recommended.
Sole Ownership
A Single Man / Woman (a man or woman who is not legally married)
An Unmarried Man / Woman (a man or woman who has been married, and is legally divorced)
A Married Man / Woman, as His/Her Sole and Separate Property (when a married man or woman wishes to acquire title in his or her name alone, the spouse must consent, by Quit Claim Deed or otherwise, to transfer, thereby relinquishing all right, title and interest in the property.
Co-Ownership (The following methods of co-ownership have various aspects regarding parties, division, title, possession, purchaser's status, interest in event of death, successor's status, creditor's rights, and presumption. If you are unsure which method of ownership is best for you, contact an accountant or attorney).
Community Property
Joint Tenancy
Tenancy in Common
Title Insurance - Why is it needed? 
The purchase of a home is most likely one of the most expensive and important purchases you will ever make. You, and your mortgage lender want to make sure the property is indeed yours - lock, stock and barrel - and that no individual or government entity has any right, or claim to the property.
Title insurance companies routinely issue two types of policies: "owner's" which covers you, the homebuyer; and "lender's" which covers the bank, savings and loan or other lending institution over the life of the loan. Both are issued at the time of purchase for a one time premium.
Prior to issuing a policy (during the escrow period), the title insurance company performs a thorough examination of records to determine if anyone other than you has an interest in the property. With such a thorough search, any title problems usually can be found and cleared up prior to your purchase of the property (close of escrow).
This coverage/protection stays in effect as long as you or your heirs own the property. Title companies offer different levels of coverage with some covering conditions that occur after issuance (encroachment, clouds, etc.). Your agent will help you understand these options during the negotiations period with the seller.