When you are buying a title insurance policy, it is very important to read and understand the policy options, terms and conditions. Ask the questions to be aware of all the coverage that is providing by the company. Then check with your requirements. You need to know about what are the exclusions for the policy.
- Defects or mistakes: The defects or mistakes are the problems with your title, which are, happen after you bought the policy. The problems that are created or not related to lender's property interests, or unrelated to yours are not covered. If you have, any questions about your property rights contact an attorney and ask for more detail. If there are any special exceptions like public utility easement, the title insurance companies added during the title examination process have to be listed in your policy. The company must have to tell you about each exceptions. To easily locate in the public records, the companies must provide you enough information.
- Financial issues: The financial issues such as the penalties that you did not pay for your property are not covered. These are also included certain assessments and taxes. Your title policy ensures that all the title property taxes and the assessments are paid for the available most current year. Certain tax exemptions claimed by the previous owners might result more taxes assessed against your property in future. Sometimes people barrow the money to buy the property. In such cases, the lender may ask that its mortgagee policy remove the exception for consequent taxes and assessments by taxing authority for prior years. It is due to the change in land ownership or land usage. Then the title company may necessitate that the taxes be calculated and paid.
- Rights issues: If the parties in possession (such as renters or any others occupying) claimed and it results the losses. If you object with this exception with the company, the title insurance company may do property inspection and delete the exception from the policy. For this inspection, the company may charge to you. Survivorship or community property or homestead of a policyholder’s spouse. The claims from other people that who may have certain rights as if a stream is flowing through your property, or has a river or near a body of water.
- Others: The other uncovered issues are as follows:
- The condemned land for which the condemnation notice not appeared in the public record as on the policy date or the condemnation occurred before to the policy date.
- Violations of zoning and building ordinances and other regulations and laws relating to land use, environmental protection, land division and land improvements.
The title insurance policies are standard in most of the states, but the forms and some rules relating to this may somewhat vary from state to state.