 Owner's
title insurance
Standard Coverage
Owner's Policy
Based upon the search
of the public records
only, this title policy
insures that:
A) The insured is the
record owner of the estate
or interest purchased.
B) There are no recorded
defects, liens, or encumbrances
on the title of which
the insured was unaware
or which were not shown
as an exception from coverage.
C) There is a right of
(legal) access to and
from the property.
D) There is marketable
title to the property.
Standard coverage
does not cover items not
of record. These items
include:
i) Taxes or assessments
not shown on the records
of the taxing authority
or by the public records
ii) Defects that are not
shown by the public record
but would discovered by
an inspection of the land
or by making an inquiry
of persons in possession
thereof.
iii) Easements, lien,
or encumbrances which
are not shown by the public
records.
iv) Matters that a correct
survey would disclose
which are not shown by
the public record.
v) Labor or Mechanic's
liens which are not shown
by the public records.
Extended Owner's
Coverage
Not only does extended
coverage include A) through
D) above, extended coverage
would protect against
matters which are shown
by the public record and
those matters not shown
by the public record which
includes such matters
as i) through v) above.
In this instance, an ALTA
survey may be required.
Plain Language
Residential Policy
This policy is used to
insure an owner of residential
real property. In addition
to the coverage afforded
by the standard owner's
policy, this type of policy
gives protection against
defects, which are covered
in an extended policy
if the defect interferes
with the use of the property
for residential purposes.
There are limitations,
however in this coverage.
The removal of a boundary
wall or fence is not covered.
Just as there are limitations,
there are benefits as
well. The amount of insurance
is automatically increased
10% per year for the first
five years, to combat
the effects of inflation.
Another benefit is that
this policy has been specifically
written to be easily understood
(Hence, the name, Plain
Language).
Lender's
Title Insurance
A.L.T.A. Standard
Coverage Policy
This coverage given to
a lender is based upon
the search of the public
record only. This coverage
generally includes that:
A) The borrower is the
owner of record of the
estate or interest, which
is to be used as collateral
for the loan.
B) There are no recorded
defects, liens, or encumbrance
which the lender is unaware
of or that do not show
as exception to coverage
under the policy.
C) There is a right of
access to and from the
property.
E) The insured security
device is valid an enforceable,
excepting usury and truth-in-lending
laws.
However, just as in the
standard owner's policy,
this coverage does not
insure against items not
of record. (See i) through
v) above).
ALTA Extended
Coverage Policy
This type of policy is
the type of coverage that
is usually requested by
lenders. Not only does
extended coverage includes
A) through E) above, extended
coverage would protect
against matters which
are shown by the public
record and those matters
not shown by the public
record such as i) through
v) above.
Endorsements
There are several endorsements
frequently issued and
requested to be issued
in conjunction with a
policy. Some of the more
common ones are:
L.T.A.A. No. 3R Endorsement-
Restrictions, Easements,
Minerals
L.T.A.A. No. 5 Endorsement-
Type of Improvement
A.L.T.A. Endorsement From
5- Planned Unit Development
L.T.A.A. No. 7 Endorsement-
Enforcement Endorsement
L.T.A.A. No. 7 Endorsement-
Marketability Endorsement
A.L.T.A. Endorsement Form
8.1- Environmental Protection
Lien
Other Policies
available:
Homeowner’s Policies
Expanded Loan Policies
Option Policies
Leasehold Policies
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