Title Insurance

Question 1

Title Insurance

Answer 1

Contract of indemnity – Insurance company guarantees to search and examine record and afford some guarantee against defects in title

ONLY PROTECTS AGAINST RECORDED DEFECTS

Protects buyers from defects in title

National way to protect title in all states

Question 2

How does title insurance work?

Answer 2

Pays you for harm

Title insurance can’t stop your title from being defective

Just takes on risk that title will be defective, and if it is, you get a bag

Question 3

Can title insurance exclude?

Answer 3

Yes, can choose not to protect you against X defects

Question 4

Walker Rogge v. Chelsea Title Co.

Answer 4

Where a deed does not recite the amount of acreage conveyed, a title insurance policy does not guarantee the quantity of land, only its title.

ROGGE WINS

Question 5

Although title insurance does not guarantee quantity of land but only title, what did the Court find that CTC had a duty to assure acreage here?
(Walker Rogge v. Chelsea Title Co.)

Answer 5

CTC had an independent duty to assure the amount of acreage that was sold because they had the deed with the mention of 12.4 acres IN THEIR RECORDS

Chelsea knew or at least should’ve known of this defect – thus, liable