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1992 Policies vs. 2006 Policies 1992
Policies vs. 2006 Policies While
some of the coverage of the 1992 forms is derived from appellate courts’
interpretations of the exceptions to the exclusions contained in the 1992
forms, an insured could not always rely on the concept that two negatives
make a positive to create such coverage because of the maze of conflicting
and confusing case law. The 2006 forms clearly set forth what is covered in
positive and affirmative language. The forms provide coverage for losses
resulting from, for example, recorded notices of violations of governmental
laws or regulations and exercises of governmental police power and eminent
domain. A
very important additional coverage is the broader definition of “Insured” so
that under certain circumstances, successors to the named insured will be
covered, removing the necessity of obtaining new policies or endorsements.
Examples of situations where additional endorsements are not necessary in
under the 2006 form are (a) when a partnership or limited liability company
is reorganized, (b) when an individual transfers property to a family trust,
(c) when there is a successor owner by merger or reorganization, and (d) when
there is a successor named insured by conversion to another entity. However,
because the 2006 form still reserves all rights against the predecessor
insured and because some voluntary transfers are NOT included in the expanded
definition of “insured” it is still good practice to request a non-imputation
endorsement addressing this issue. The
2006 loan form clarifies that coverage, including mechanics lien coverage,
extends to all future advances under a construction loan. Additionally the
new form provides express coverage for post-closing advances under a loan;
however, endorsements are still needed to ensure validity, enforceability and
priority of the lien of the insured mortgage as security for post-closing
advances. As
stated at the end of last weeks “Title Tip” This new form is easier for our
customers and our insured to read and understand, along with the added and
enhanced coverage. In
order to make this an easier situation for you, our customers, we at
Benchmark Title are only issuing the 2006 forms. As a matter of information,
the ALTA has officially decertified the 1992 forms. 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 Be the first in your
office to try out SureClose.com,
Benchmark Title's new FREE online transaction management system. Why waste
time making status phone calls or standing by the fax waiting for your title
commitment when you can get what you need instantly from your own computer.
Visit SureClose.com for more
information or call April Tolan,
our SureClose Specialist, at 618-239-3750 for your sign-on so you can start
saving yourself time and money today. We'll even give you and your 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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We send special notices and tips to customers who have given
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