What is generally demanded in every sale of real property in California?

In a real estate transaction in California, a policy of title insurance is a standard demand because it protects both the buyer and the lender from potential disputes over the ownership of the property. Title insurance provides assurance that the title to the property is clear, meaning there are no outstanding liens, encumbrances, or issues with ownership that could affect the buyer's rights or the value of the property.

The policy safeguards against financial loss resulting from claims against the title that may arise after the purchase is completed. This is particularly important since real estate transactions often involve substantial investments and the owner may not be fully aware of any hidden title issues that could come to light after the sale.

While homeowner's insurance, property appraisals, and pest inspection reports are important components of a real estate transaction and may be requested by buyers or lenders, they are not universally demanded in every sale as title insurance is. Homeowner's insurance typically becomes necessary for a buyer once they own the home, an appraisal is often required by lenders but not universally by all buyers, and pest inspection reports while useful, are not mandatory unless specified by the buyer or lender for a specific transaction.