Title Insurance Commitment
It's Very Important that You Read Your Title Insurance Commitment
Deed of Trust
Deeds of trust which are paid off but not re-conveyed by the trustee or a court ordered satisfaction to remove it from the record. Upon proof of payment and indemnity, the title company may remove those as exceptions in certain situations.
Extended Coverage Matters
A supplemental commitment may be issued after an inspection or a survey to remove this exception or replace the exception with a specific description. If the supplemental shows a question of encroachment, lien rights or other matters, most lenders will require those matters to be resolved, or the exceptions to be removed. If an extended coverage owners policy is requested, an ALTA/ACSM survey of the property is required on most sales.
Joint Use Matters
Driveways, party walls and access easements may require a joint maintenance agreement by the lender. The preliminary commitment will show an exception for agreement if one is recorded. Often a signed and notarized statement from all parties involved is required to satisfy title.
Judgments and liens may be eliminated with an Identity Affidavit if they do not affect the vested owner, or purchaser. If they do affect our party, but have been paid and not satisfied, a release may be recorded or filed to eliminate these matters from the record.
Always compare the legal description in Schedule A of the commitment to the legal description in the purchase and sale agreement. Be Sure that all property being conveyed has been included and thereby covered in the preliminary commitment.
Taxes and Assessments
Check to see if there is an exemption or classification designation that would change the tax amount as a result of the sale or loan, then disclose this to the buyer.
If your seller is not in the title, look for a real estate contract as an exception. There may be a conveyance to the seller that is described as an exception with a question raised about the document. If none exists, check the legal description to make sure it is the same description as in the purchase and sale agreement.
A civil action affecting real property will generally need to be dismissed or settled before title to the land can be insured without showing the action as an exception. A pending divorce may not need to be finalized for a sale or loan to close, however there may be special requirements.