Kelly Cards - Title Insurance Flashcards
product that modifies the insurance policy
endorsements
Insures the interest of an owner of an interest in real estate. Not limited to public record but extends to hidden defects
Owner’s Policy
Insures a lender that the recorded mortgage has priority over all matters exept for those shown as exceptions. Not limited to public record but extends to hidden defects
Loan Policy
On a loan policy, in addition to the same exclusions as an owner’s policy, what is the additional exclusion?
If the mortgage is found to be invalid because the lender is not registered to do business in the state of ohio, there is no insurance
On the commitment in general terms, what is listed in schedule A
“who, what, where, and how much of the insurance”
In general terms, what is listed in schedule B (part 1) of a commitment
Items that must happen before a transaction can close
On the commitment in general terms, what is listed in schedule B (part 2)
exceptions to standard items and specific items
What is the difference between standard exceptions and specific exceptions
standard is used in every transaction and specific is unique to a particular transaction
Standard exceptions are generally OFF RECORD. What is the only way to remove some of these exceptions?
Obtain a survey and have the owner sign a seller’s affidavit
What is an affidavit of title?
same thing as a seller’s affidavit. Sworn testimony that seller is not aware of defects not already disclosed
Parts of a policy jacket
Covered risks, exclusions, and conditions
Examples of things NOT covered in a title insurance policy
- Market value
- Acreage, square footage, or area of the property
- The property address
Who is the mortgagee and who is the mortgagor
Mortgagee is the bank and the mortgagor is the person
