The Bamberger Blog » title insurance

Slander of Title

kjewell — Wed, 05 May 2010 14:22:14 +0000

When taking a lien on real estate, you should be wary of the concept of “slander of title.” Slander of title results when a false and malicious statement is made against a person’s title to real property. In some circumstances, a mortgage lien could be the subject of a slander of title lawsuit.

You are protected from liability if your lien is a consensual lien from all of the owners of a tract of real estate. Thus, before taking a lien against real estate, it is crucial that you determine the exact location and all owners of the real estate. This determination is best made by obtaining a title insurance commitment and survey.

A title insurance commitment will disclose all owners and the recorded legal description of the real estate. The survey will identify the location of the real estate and all encroachments and overlaps which affect the real estate. After reviewing the commitment and survey, you should properly draft the mortgage so that the lien is limited to the real estate owned by your borrowers.

If you have any questions about locations of boundaries, owners or other items disclosed by your commitment or survey, please contact your attorney to review the transaction.

Author: Jason P. Lueking (bio)
Phone: 317.464.1591
email: jlueking@bamberger.com

Exceptions Are Everything

kjewell — Mon, 19 Apr 2010 18:58:47 +0000

Items listed as exceptions to a title insurance commitment are placed in the last portion, or Schedule B-2, of the commitment. As such, the items are often ignored when reviewing your commitment. However, these exceptions can significantly alter the scope of your title insurance coverage. Without understanding the matters listed as exceptions, you cannot evaluate the title to your real estate.

When placing an order for title insurance, you are entitled to obtain and review copies of all of the documents listed as exceptions in Schedule B-2. Upon a careful review of the documents listed as exceptions, you will better understand the title to the real estate and you may be able to present evidence which would allow the title company to delete the exception or provide affirmative coverage which insures over the exception. More importantly, you may discover a crucial defect which affects your future use and ownership of the property.

Author: Jason P. Lueking (bio)
Phone: 317.464.1591
email: jlueking@bamberger.com

An Ounce of Prevention

kjewell — Mon, 12 Apr 2010 19:16:50 +0000

The purchase of a home is a significant financial and emotional investment. The process can be very time-consuming and stressful. An attorney’s role in this process is to examine legal issues and prevent future legal problems before they arise.

The attorney’s role should start with the purchase agreement. The attorney should be contacted to review the agreement and advise you as to the legal risks associated with the transaction. The attorney’s role should continue with the legal “due diligence” involved in preparing or reviewing a title insurance commitment for the property. The attorney will advise you as to the sufficiency of the legal description and the risks involved with any matters listed as exceptions to the scope of your title insurance coverage.

An attorney can also participate in the closing to the sale of the real estate. The attorney will review closing documents to determine that you have obtained all of the documents required for obtaining good title to the property. In addition, the attorney will be concerned with making sure that all other contingencies contained in the purchase agreement have been satisfied.

Attorneys generally charge hourly for representing you in the purchase of a home. On routine residential transactions, costs for such services generally range from five hundred to a thousand dollars. Greater costs are often incurred if preventable legal problems must be addressed after closing.

Author: Jason P. Lueking (bio)
Phone: 317.464.1591
email: jlueking@bamberger.com

Exceptions to Title Coverage

kjewell — Mon, 15 Mar 2010 13:56:35 +0000

Buyer and lender often require a title insurance commitment in connection with a real estate transaction. Many times, a buyer or lender will focus on the items listed on Schedule B-1 of the title insurance commitment, which lists the requirements that must be complied with prior to issuance of a title insurance policy.

However, Schedule B-2 of the commitment is often times glossed over or overlooked entirely. Schedule B-2 lists those items that will appear as exceptions to coverage on the title insurance policy. Many of the listed exceptions, e.g. easements and restrictive covenants, may have a significant impact on future use of the real estate. These exceptions can only be effectively evaluated through a careful review of the documents themselves. Additionally, a review of the documents may reveal that certain items should be deleted from the commitment and policy.

Author: Chris Wischer (bio)
Phone: 812.452.3595
email: cwischer@bamberger.com