Title Insurance Principles - Policy Sections

Question 1

Title Policy - Schedule A

Answer 1

Shows the who, what, when, where and how much. It discusses the specific information on the policy such as:

effective date of policy (date of policy is the recording date)
amount of coverage (amount of insurance. owner’s policy = property sales price and lender’s policy = loan amount)
the insured (party covered by policy)
the legal description of the land insured by the policy (legal description of record)
the estate insured (fee simple, leasehold or life estate)

Question 2

Title Policy - Schedule B

Answer 2

lists exceptions to the policy based on the status of title when the title search was performed. Exceptions are transaction specific and serve as a notice to the insured that the title company will not pay a claim or defend a claim based on the excepted items

Question 3

Standard exceptions included:

Answer 3

Prior unreleased mortgages on the property

Any discrepancies or conflicts in boundary lines, any shortages in area, or any encroachment or overlapping of improvements

Any facts, rights, interests of claims not shown by public record but that could be ascertained by an accurate survey of the land by making inquiry of persons in possession thereof

Easements, liens or encumbrances or claims thereof not shown by public records

any lien or right to lien for services labor or material imposed by law and not show by public records