• Title Insurance pays for losses sustained by the new owner or the lender - the new owner does not have to prove negligence. -The two basic types of title insurance are owners' title insurance and lenders' title insurance.
Like most insurance policies, there are exclusions and exceptions from the insurance. These arise mainly from government restrictions on ownership (police power, eminent domain, and ad valorem taxation) and private restrictions (deed restrictions).
•A title insurance policy docs not cover: -Police power of the government, such as zoning, building restrictions, setback requirements, and so on -Rights of eminent domain -Liens or encumbrances created by the insured person, or known to the insured person at the time or purchase, but not known by the title insurance company -Liens or encumbrances attaching to the property after the policy date
Courtesy of Rowlett Real Estate School LLC, www.rowlettrealestateschool.com
P.Stone, RRES
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