Title Insurance

Question 1

American Land Title Association

Answer 1

Association of land title companies throughout the country

Question 2

Extended Coverage

Answer 2

Policy that includes all of the coverage of a standard policy, plus additional insurance against anything an inspection of a property might disclose

Question 3

Leasehold Policy

Answer 3

Provides protection to a tenant or a lender to the tenant against defects in the lessor’s title

Question 4

Lender’s Policy

Answer 4

Provides protection against defects in the title pledged as a security in a mortgage or trust deed note and insures the lender of his or her security position

Question 5

Owner’s Policy

Answer 5

Title insurance policy designed to protect the fee owner

Question 6

Standard Coverage

Answer 6

Used in residential conveyance and is limited to insurance against forged documents of incorrect marital status, documents signed by incompetent parties, unmarketable property due to defect of title, and an improperly delivered deed

Question 7

Subrogation

Answer 7

The substitution of one person in the place of another with reference to a lawful claim such as when an insurance company pays a claim and then has the right to collect from the party causing the loss

Question 8

Title Commitment/ Preliminary Title Report

Answer 8

A statement of current condition of title for a parcel of land; obligates the title insurance company to issue a policy of title insurance when curative requirements have been satisfied

Question 9

Title Insurance

Answer 9

An insurance policy written by a title company to protect a property owner against loss, if the title is defective or not marketable