LAW 703 Chapter Notes - Chapter 11: Adverse Possession
LAW703 – Chapter 11
Titles Insurance
Prior to Title Insurance – Use of Lawyers Opinion on Marketable Title
Lawyers could not opine on – Page 732
oFraud & Forgery
oSurvey error
oAdverse possession
oEasements by prescription
oUnregistered easements and agreements
oUnregistered construction liens
oErrors in government records
Title Insurance – covers some exclusions from lawyer’s opinion letter and some known defects
Only covers actual loss – until a problem creates loss no complication to compensate
Title insurers can exclude some off-title searches – reduces disbursement costs
Title policies exclude known defects – if client is aware and does not disclose, the defect
will not be covered even if it falls in coverage.
oIf client discloses – defect will be listed as exemption to policy OR
oTitle insurer can agree to insure-over the defect OR
oTitle insurer may insure-over events that could result from defect
Structure of Title Insurance Policy
Policy and Date – only covers within policy period and property insured
Actual Loss – direct financial loss resulting in decrease in value of the insured land and
cost of bringing land into compliance. Must have occurred.
Coverage – See Page 740
Legal services Coverage
Duty to defend
General Exclusions
Property Specific Exceptions
Endorsements added to policy
Cases:
1. Gemeinhardt V. Babic
2. Nadvornianski V. Stewart Title Guaranty Company
a. Bare trustee can make a claim on behalf of beneficiaries and beneficiaries can
make claim once proved
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Prior to title insurance use of lawyers opinion on marketable title. Lawyers could not opine on page 732: fraud & forgery, survey error, adverse possession, easements by prescription, unregistered easements and agreements, unregistered construction liens, errors in government records. Title insurance covers some exclusions from lawyer"s opinion letter and some known defects. Only covers actual loss until a problem creates loss no complication to compensate. Title insurers can exclude some off-title searches reduces disbursement costs. Policy and date only covers within policy period and property insured. Actual loss direct financial loss resulting in decrease in value of the insured land and cost of bringing land into compliance.
