Some information on title insurance:
Depending on the title company, consumers can choose among a variety of options, but the top three choices are Owners, Lender's and Extended Coverage.
Basic Owner's Title Policy Coverage:
Clear title to the property
Incorrect signatures on documents
Forgery, fraud
Defective recordation
Restrictive covenants
Encumbrances or judgments
Basic Lender's Title Policy Coverage:
Mechanic's liens and unrecorded liens
Unrecorded easements and access rights
Defects and other unrecorded documents
Extended Owner's Coverage
[Building permit violations from previous owners]
Subdivision maps
Covenant violations from previous owners
Living trusts
Structure damage from mineral extractions
Variety of encroachments and forgeries after title insurance is issued
The issue is, if they have the title insurance, they are protected from liability issues from the previous owner, including
permit violations, from previous owners.
In order for the current homeowners policy to stay whole, it is their responsibality to obtain permits when and where required.
Last edited by LK; 07/25/07 08:10 PM.
