Greetings!
When anyone purchases a property - whether it's a vacant piece of land, home or commercial lot or building, it's typical for the buyer to request and the seller to provide a commitment for a Title Insurance Policy on the property.
It's very important that the buyer and his/her attorney review the Title Commitment received from the Title Company with respect to the conditions of the property. Those conditions include but are not limited to the correct legal description, legal ownership, easements, encroachments, mortgages, real estate taxes due, liens and exceptions and exclusions to the policy itself. There may be changes that occur to the property status between the time of an accepted offer and the closing.
GAP insurance is available for a buyer to purchase to cover certain issues that occur in the time between the issue of a title commitment for an insurance policy and the actual closing of the transaction.
Another kind of insurance policy that isn't is OEC or Owners Extended Coverage. Typically OEC is a policy in which ALL of the standard exceptions have been deleted. While the way the standard exceptions are listed varies slightly from title agent to title agent, they are essentially the following:
1. Rights or claims of parties in possession not shown by the Public Records.
2. Easements, or claims of easements, not shown by the Public Records.
3. Encroachments, overlaps, boundary line disputes, or other matters which would be disclosed by an accurate survey or inspection of the Land.
4. Any lien, or right to a lien, for services, labor, or material heretofore or hereafter furnished, imposed by law and not shown by the Public Records.
5. Taxes or special assessments which are not shown as existing liens by the Public Records.
6. Matters first going of record after the effective date of the commitment.
Please note especially "not shown as existing in the public record". If you are a buyer or seller, it certainly is worth your time, effort and money to consider OEC insurance in any real estate transfer; it may be one of the most important investments you make in your next real estate deal.
Thanks to Renee Donaghue of Sawyer County Abstract & Title Company for sharing this information.
Have a great weekend and remember, Life is a Gift...Live It!
Gary Nathan
Amanda Mavis
Woodland Developments & Realty
15563 Railroad St
Hayward, WI 54843
715-634-2110
715-699-4040
nathan@garynathan.com
http://www.garynathan.com/
