LA Notice of Availability of Owner's Title Insurance

Notice of Availability of Owner's Title Insurance

To:                   _____________________________________________________________________

Property:        _____________________________________________________________________

A Mortgagee's (Lender's) Policy of Title Insurance insuring the title to the property you are buying is being issued to your mortgage lender, but that policy does not provide title insurance coverage to you as the owner.  You may obtain an Owner's Policy of title insurance, which provides title insurance coverage to you. This rate for Owner's Policy coverage offered at the time of this transaction is called a Simultaneous Issue Rate.

 

INITIALS

The additional cost to you for the simultaneous issue of an Owner's Policy of title insurance at this time is in the amount of:

 

POLICY COVERAGE AMOUNT:  $____________________

 

ADDITIONAL PREMIUM FOR SIMULTANEOUS COVERAGE:   $____________________.

Note that this rate is good during the scope of this transaction.  If you desire an Owner's Policy at a later date, the cost will be significantly higher, if available at all.

An Owner's Policy covers the following title risks, as of Date of Policy, subject to the exclusions and exceptions from coverage.

1. Someone else owns an interest in your title.

2. A document is invalid because of improper signature, acknowledgment, deliver,

or recording 

3. A document is invalid because of forgery, fraud, duress, incompetency, incapacity

or impersonation.

4. Restrictive covenants apply to your title.

5. There is a lien on your title because of:

*  a mortgage or deed of trust,

*  a judgment, tax, or special assessment, or

*  a charge by a homeowner's or condominium association.

6. There are liens on your title for labor and material which have their inception before

the policy date. However, we will not cover liens for labor and material that you agreed

to pay for.

7. Others have rights in your title arising out of leases, contracts or options.

8. Someone else has an easement on your land.

9. You do not have good and indefeasible title.

10. There are other defects in your title.

11. There are other liens or encumbrances on your title.

12. You do not have legal right of access to and from the land.

We also will defend your title in the part or parts of a court case involving a Title Risk covered by this Policy.

Additionally, depending upon the type of Owner's Policy you purchase, you may also be covered against the following title risks:

INITIALS

  • You are forced to remove you existing structure, other than a boundary wall or fence, because it extends onto adjoining land or onto any easement, violates a restriction listed in Schedule B of the policy, or violates an existing zoning law.
  • You cannot use the land because use as a single-family residence violates a restriction shown in Schedule B of the policy or an existing zoning law.

·         You also have the right to obtain a survey, at your cost, and if it is satisfactory to our company and Stewart Title Guaranty Company, we may include coverage in you Owner's Policy to insure you against actual loss you suffer if the matters covered by the survey are incorrect.

A LENDER'S TITLE INSURANCE POLICY PROVIDES NO PROTECTION TO THE PROPERTY OWNER.

Stewart Title Guaranty Company also offers an expanded coverage Owner's Policy of title insurance, which provides additional coverage to you, the owner.  The following is a list of the additional title risks covered by an Expanded Coverage Owner's Policy:

 

INITIALS

ADDITIONAL PREMIUM FOR COVERAGE:   $____________________.

  • Mechanics lien protection, if included in policy schedules
  • Forced removal of a structure because it extends on to other land or on to an easement
  • Violates a restriction on Schedule B
  • Cannot use the land for single family dwelling because the use violates an existing zoning law or regulation
  • Pays rent for substitute land or facilities
  • Unrecorded lien by a homeowners association
  • Unrecorded easements
  • Rights under unrecorded leases
  • Violates an existing zoning law; Building permit; An existing subdivision law that leads to you not being able to obtain a permit; or forced removal of the violation *
  • Restrictive covenant violations
  • Post Policy Forgery; Encroachment; Living Trust Coverage; Prescriptive Easement;
  • Post Policy Damage from minerals or water extraction
  • Enhanced Access-Vehicular and Pedestrian
  • Map not consistent with legal description
  • Post Policy automatic in value up to 150%
  • Post Policy adverse possession or cloud on title
  • Covenant violation resulting in reversion
  • Fence encroachment or boundary walls *
  • Enhanced marketability of property
  • Violations of building setbacks
  • Discriminatory covenants

* Subject to a deductible and a maximum indemnity liability, which may be less than the policy amount.

           


For additional endorsement premium, Mechanic's and Materialman's Lien coverage may be available.  Coverage varies depending on policy type.  This is especially important if you are purchasing a newly constructed home and are buying within the lien period.  The lien period runs for 70 days after the construction is complete.  Additional premium for the Mechanic's and Materialman's coverage:  $_______________________.

 

It is the recommendation of this title agency, its agent and/or assigns to purchase an owners title policy at this time.  In the event you elect not to obtain one, you agree to hold this company, its agents/assigns, and its underwriter harmless from any claim that may arise that may have been insured against by an Owner's Title insurance policy.

           

If you are uncertain as to whether you should obtain an Owner's Policy of title insurance, you are urged to seek independent legal advice.

 

_________        I/We do not request an Owner's Policy of title insurance

________________________________________________                        ________________________________

                                                                                                            Date

________________________________________________                        ________________________________

                                                                                                            Date

 


No guidelines are available for this form at this time.

No guidelines are available for this form at this time.