ALTA Residential Title Insurance Policy 1979
STEWART TITLE GUARANTY COMPANY
OWNER'S COVERAGE STATEMENT
This Policy insures your title to the land described in Schedule A--if that land is a one-to-four-family residential lot or condominium unit. Your insurance, as described in this Coverage Statement, is effective on the Policy Date shown in Schedule A.
Your insurance is limited by the following:
EXCLUSIONS on page 2
EXCEPTIONS in Schedule B
CONDITIONS on pages 2 and 5.
We insure you against actual loss resulting from:
any title risks covered by this Policy--up to the policy Amount and
any costs, attorneys' fees and expenses we have to pay under this Policy.
COVERED TITLE RISKS
This Policy covers the following title risks, if they affect your title on the Policy Date.
1. Someone else owns an interest in your title.
2. A document is not properly signed, sealed, acknowledged, or delivered.
3. Forgery, fraud, duress, incompetency, incapacity or impersonation.
4. Defective recording of any document.
5. You do not have any legal right of access to and from the land.
6. There are restrictive covenants limiting your use of the land.
7. There is a lien on your title because of:
a mortgage or deed of trust
a judgment, tax, or special assessment
8. There are liens on your title, arising now or later, for labor and material furnished before the Policy Date--unless you agreed to pay for the labor and material.
9. Others have rights arising out of leases, contracts, or options.
10. Someone else has an easement on your land.
11. Your title is unmarketable, which allows another person to refuse to perform a contract to purchase, to lease or to make a mortgage loan.
12. You are forced to remove your existing structure--other than a boundary wall or fence--because:
it extends on to adjoining land or on to any easement
it violates a restriction shown in Schedule B
it violates an existing zoning law.
13. You cannot use the land for a single-family residence, because such a use violates a restriction shown in Schedule B or an existing zoning law.
14. Other defects, liens, or encumbrances.
COMPANY'S DUTY TO DEFEND AGAINST COURT CASES
We will defend your title in any court case that is based on a matter insured against by this Policy. We will pay the costs, attorneys' fees, and expenses we incur in that defense.
We can end this duty to defend your title by exercising any of our options listed in Item 4 of the Conditions.
This policy is not complete without Schedules A and B.
In addition to the Exceptions in Schedule B, you are not insured against loss, costs, attorneys' fees, and expenses resulting from:
1. Governmental police power, and the existence or violation of any law or government regulation. This includes building and zoning ordinances and also laws and regulations concerning:
improvements on the land
This exclusion does not limit the zoning coverage described in Items 12 and 13 of Covered Title Risks.
2. The right to take the land by condemning it, unless a notice of taking appears in the public records on the Policy Date.
3. Title Risks:
that are created, allowed, or agreed to by you
that are known to you, but not to us, on the Policy Date--unless they appeared in the public records
that result in no loss to you
that first affect your title after the Policy Date--this does not limit the labor and material lien coverage in Item 8 of Covered Title Risks
4. Failure to pay value for your title.
5. Lack of a right:
to any land outside the area specifically described and referred to in Item 3 of Schedule A
in streets, alleys, or waterways that touch your land
This exclusion does not limit the access coverage in Item 5 of Covered Title Risks.
a. Easement - the right of someone else to use your land for a special purpose.
b. Land - the land or condominium unit described in Schedule A and any improvements on the land which are real property.
c. Mortgage - a mortgage, deed of trust, trust deed or other security instrument.
d. Public Records - title records that give constructive notice of matters affecting your title--according to the state law where your land is located.
e. Title - the ownership of your interest in the land, as shown in Schedule A.
2. CONTINUATION OF COVERAGE
This Policy protects you as long as you:
own your title
own a mortgage from anyone who buys your land
are liable for any title warranties you make
This Policy protects anyone who receives your title because of your death.
3. HOW TO MAKE A CLAIM
If anyone claims a right against your insured title, you must notify us promptly in writing.
Send the notice to Stewart Title Guaranty Company, P.O. Box 2029, Houston, Texas 77252. Please include the Policy number shown in Schedule A, and the county and state where the land is located.
Our obligation to you could be reduced if:
you fail to give prompt notice
your failure affects our ability to dispose of or to defend you against the claim.
4. OUR CHOICES WHEN YOU NOTIFY US OF A CLAIM
After we receive your claim notice or in any other way learn of a matter for which we are liable, we can do one or more of the following:
a. Pay the claim against your title.
b. Negotiate a settlement.
c. Prosecute or defend a court case related to the claim.
d. Pay you the amount required by this Policy.
e. Take other action which will protect you.
f. Cancel this Policy by paying the Policy Amount, then in force, and only those costs, attorneys' fees and expenses incurred up to that time which we are obligated to pay.
5. HANDLING A CLAIM OR COURT CASE
You must cooperate with us in handling any claim or court case and give us all relevant information. Unless you can show that payment was reasonable and necessary, we will not reimburse you for money you pay, or agree to pay:
to settle disputes
to cover expenses and attorneys' fees.
When we prosecute or defend a court case, we have a right to choose the attorney. We can appeal any decision to the highest court. We do not have to pay your claim until your case is finally decided.
6. LIMITATION OF THE COMPANY'S LIABILITY
a. We will pay up to your actual loss or the Policy Amount in force when the claim is made--whichever is less.
b. If we remove the claim against your title within a reasonable time after receiving notice of it, we will have no further liability for it.
If you cannot use any of your land because of a claim against your title, and you rent reasonable substitute land or facilities, we will repay you for your actual rent until:
the cause of the claim is removed
we settle your claim.
c. The Policy Amount will be reduced by all payments made under this Policy--except for costs, attorneys' fees and expenses.
d. The Policy Amount will be reduced by any amount we pay to our insured holder of any mortgage shown in this Policy or a later mortgage given by you.
e. If you do anything to affect any right of recovery you may have, w can subtract from our liability the amount by which you reduced the value of that right.
7. TRANSFER OF YOUR RIGHTS
When we settle a claim, we have all the rights you had against any person or property related to the claim. You must transfer these rights to us when we ask, and you must not do anything to affect these rights. You must let us use your name in enforcing these rights.
We will not be liable to you if we do not pursue these rights or if we do not recover any amount that might be recoverable.
With the money we recover from enforcing these rights, we will pay whatever part of your loss we have not paid. We have a right to keep what is left.
8. OUR LIABILITY IS LIMITED TO THIS POLICY
This Policy, plus any endorsements, is the entire contract between you and the Company. Any title claim you make against us must be made under this Policy and is subject to its terms.
STEWART TITLE GUARANTY COMPANY
RESIDENTIAL TITLE INSURANCE
POLICY - ONE-TO-FOUR FAMILY
OWNER'S INFORMATION SHEET
Your Title Insurance Policy is a legal contract between you and the Company.
It applies only to a one-to-four family residential lot or condominium unit. If your land is not either of these, contact us immediately.
The Policy insures you against certain risk to your land title. These risk are listed on page one of the Policy. The Policy is limited by:
Exclusions on page 2
Exceptions in Schedule B
Conditions on pages 2 and 5
You should keep the Policy even if you transfer the title to your land.
If you want to make a claim, see Item 3 under Conditions on page 2.
You do not owe any more premiums for the Policy.
This sheet is not your insurance Policy. It is only a brief outline of some of the important Policy features. The Policy explains in detail your rights and obligations and our rights and obligations. Since the Policy--and not this sheet--is the legal document:
YOU SHOULD READ THE POLICY VERY CAREFULLY.
If you have any questions about your Policy, contact:
STEWART TITLE GUARANTY COMPANY
P.O. Box 2029
Houston, Texas 77252
RESIDENTIAL TITLE INSURANCE POLICY
TABLE OF CONTENTS PAGE
COVERED TITLE RISKS 1
COMPANY'S DUTY TO DEFEND
AGAINST COURT CASES 1
SCHEDULE A 3
Policy Number, Date and Amount
1. Name of Insured
2. Interest in Land Covered
3. Description of the Land
SCHEDULE B--EXCEPTIONS 4
CONDITIONS 2 and 5
1. Definitions 2
2. Continuation of Coverage 2
3. How To Make A Claim 2
4. Our Choices When You
Notify Us of a Claim 5
5. Handling a Claim or Court Case 5
6. Limitation of the Company's
7. Transfer of Your Rights 5
8. Our Liability is Limited to
This Policy 5
For issuing guidelines on this form, see Guidelines