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4 Cards in this Set

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  • Back
Title insurance
contract of indemnity under which the insurer for a valuable consideration agrees to indemnify the insured in a specified amount against loss through defects of title to, or liens or encumbrances upon realty in which the insured has an interest.
what does title insurance do?
A.Title insurance guarantees that the insurance company has searched the public records and insures against any defects in the public records, except as otherwise provided for in the particular policy. This insurance creates liability only to the insured and will not run with the land to subsequent purchasers. Landowners only have to pay title insurance once when they purchase the property.
B.Title Insurance insures good title. If the owner has title insurance and there is a defect, he may sue under both title insurance and warranty.
Does a title insurance company have a duty?
a.Duty of a title insurance company depends on the agreement between insurer and insured. If there is no proof of a voluntary assumption of the duty, then there is no duty other than to provide the insurance.
b.There is a split in jurisdictions of those who impose blanket negligence liability without a showing of a duty, and those like this case that require proof of an assumption of the duty.
Does title insurance insure the land itself?
A.Title insurance policies are intended to protect the condition of an owner’s title to land, and not provide coverage for the physical condition of the land itself.
a.Similarly, a title insurance company will not be held liable for a failure to disclose any land-use restrictions, since such restrictions are not considered encumbrances on title and do not make title unmarketable
b.However, an exculpatory clause against negligence in a policy may not, because unfair and unconscionable, bar a claim based on a breach of an assumed duty to search an disclose