Title insurance for California Land Trust

[Anna Nesterchuk]

Hi,

Has anyone obtained title insurance in California for a property that was held in a Land Trust? What California Title insurance company did you use?

The reason I ask is because I was advised by Anderson Advisors to setup a California Land trust owned by an out-of-state LLC for a California rental property. This structure was recommended for anonymity and asset protection purposes.

Before actually placing the property deed into the Land Trust, I contacted a number (7) of title insurance companies and they all explained that they do not provide title insurance for properties held in Land Trust. They explained that once a property title is placed in a Land Trust, the title becomes "clouded" similar to a salvage title for a car. 

This is concerning because I am afraid I will only be able to sell to "all-cash-buyers" if I am unable to obtain title insurance, because typical mortgage lenders require title insurance.

I contacted Anderson Advisors and they recommended that I need to "shop around" for a title insurance company, but I have contacted 7 already with no luck. Can anyone provide an insight into this situation? Thanks in advance.