Title Assurance Flashcards
Why was title insurance developed?
Because of inadequacies and ineffeciencies in the public records in protecting private titles to land.
What does title insurance guarantee?
That the insurance company has searched the public records and insures the policy holder against any defects in the public records, unless such defects are specifically excepted from coverage in the policy.
What does title insurance present?
The opinion of the insurer concerning the validity of title, backed by an agreement to make that opinion good should it prove to be mistaken and loss results as a consequence.
How is title insurancep urchased?
With a one-time premium paid at the time the policy is issued
How long does title insurance continue?
For so long as the insured maintains an interest in the property.
What amount is insured?
The purchase price of the home if an owner’s policy and the amount of the loan if a lender’s policy.
Does title insurance run with the land?
No. A subsequent purchaser must take out a new policy if he/she wants title insurance.
Who pays for title insurance?
The buyer usually pays for the lender’s policy. The seller should pay for the owner’s policy.
Who is covered under title insurance?
A lender’s policy covers the lender. An owner’s policy covers the buyer.
Even with title insurance, should a survey be completed?
Yes. Title insurance is not a substitute for a survey. Survery exceptions do not insure against loss or damage by matters which could be disclosed by an accurate survey and inspection of the premises.
What is a title commitment?
A precursor to the owner’s policy. It is a search done by the title company. It is for the title company’s benefit to determine if they want to issue an owner’s policy of title insurance.
What is a title abstract?
A product you can order and they have to give you all the things they find on the public record. The abstract is dfone for the benefit of the purchaser.
