Underwriting Manual: Undivided Interests, Insurance Of

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Standard Exceptions


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State Supplements

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Table of Contents

Underwriting Manual Subtopic

In General

V 4

Any request for the insurance of an undivided or "fractional" interest in real property makes it necessary to consider the following:

  • Whether the undivided interest being asked to insure is not the only interest being transferred.

    Comment: It is permissible to insure an undivided interest.

  • Whether the undivided interest being asked to insure is not the only one being transferred.

    Comment: Inquiry should be made as to the reasons why insurance is not sought for the rest of the undivided interests. Possibly, title insurance should be declined.

  • Whether the sum of all the outstanding fractional or undivided interests adds up to one hundred percent.

    Comment: It is necessary to determine that the sum of all the fractional or undivided interests represents the whole property. If this is not the case, title insurance must be declined or an exception included in all policies to the consequences of there being less or more thatn 100% of the interests identified of record.

  • Whether the undivided or fractional interest is properly identified in the instrument transferring or conveying the same.

    Comment: As long as the warranty deed does not limit or restrain the interest being conveyed, title will pass, subject to compliance with the rules of conveyancing, transferring whatever interest the grantor had in the property.

  • That the legal description to be shown in the title policy be preceded by the undivided interest (one-third, one-half, one-twentieth, etc.) being insured:


    "An undivided one- ____________ interest in and to the following described property: " __________________ " (legal description).