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Added Coverages in the 2006 Title Policies ADDED
COVERAGES IN THE 2006 TITLE POLICIES The
American Land Title Association Forms Committee (ALTA) has spent the last few
years updating its standard 1992 ALTA Owners Policy and its 1992 Standard
Loan Policy. The
1992 forms required updating to, among other things, to clarify grey areas of
coverage. You can go to www.alta.org and
review a comparison chart between the 1992 and the 2006 policy forms. The
following are only some of the highlights of those differences. The
2006 forms contain broader coverage that is now explicitly stated. Where the
1992 owners policy only has four insuring clauses or “Covered Risks” and the
1992 loan policy has eight, the 2006 form contain ten and fourteen,
respectively. The 2006 forms clearly set forth what is covered in positive
and affirmative and understandable language. The
2006 forms expressly address issues dealing with electronic documentation and
recordings where the 1992 forms do not. The
2006 forms add some survey coverage for encroachments. However, note that
this does not preclude a title company from adding a broad survey exception
in the event there is no survey or an outdated survey for a particular
transaction where specific ALTA survey coverage is a requirement. The
2006 forms contain “GAP” coverage (i.e., for coverage for things occurring
between the date of closing or funding and the actual date of recording).
Insureds no longer need to request that coverage by endorsement, as it is a
part of the 2006 form policy. To
make issuance of endorsements easier, the 2006 loan policy form contains a
“Check the Box” list of customarily requested endorsements. When the box is
checked, the coverage applies without the need to physically attach the
endorsement to the policy. Although
the 2006 forms do not contain any ground-breaking coverage that could not be
obtained using the old form with the addition of certain endorsements, the
2006 forms greatly simplify the process by expressly providing coverage so
that the insured is not burdened with the task of requesting certain
endorsements. They also make it a bit easier for the insured to read and
understand his rights and coverages under the policy. There
will be more on this in next weeks “Title Tip”. Any questions can be directed to
Benchmark Title at 618-239-3750. Please feel free to call or
email:
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Dates to Remember December 25, 2007 - Benchmark Title
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Visit SureClose.com for more
information or call April
Tolan, our SureClose Specialist, at 618-239-3750 for your sign-on so you
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clients a free CD at closing containing copies of their closing documents. Give me my policy! Did you know that
lenders and home buyers now receive their title policies at the closing
table? Contact Michelle
Null, VP Escrow Operations, to learn more about this exciting new
program. Ready to refi? Lenders and homeowners
will want to hear about our fantastically low new refinance rates. Contact us
today for a quote! Why wait? You can place your
next title order now by clicking here. |
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