Page 9 - CTT Title & Escrow Guide for Buyers & Sellers - Montana
P. 9
TYPES OF
COVERAGE 2. ALTA Standord Owners Policy:
The Owner’s Standard Policy will cover the buyer
Please visit our website at against issues that could be discovered by an
www.ctic.com for a complete examination of Public Record.
chart showing a deeper comparison of the
three forms of coverage below: Examples of these would be:
ظ A document upon which your title is based was
not properly filed, recorded or indexed in the
Public Records.
1. Homeowner’s Title Insurance Policy: ظ Someone else has a right to limit your use of
The Homeowner’s Policy is only available on the land.
single family homes to fourplexes. It must be ظ Someone else claims to have rights affecting
owned by a “natural person” and not an entity your title arising out of forgery or
such as a corporation or an LLC. In addition to impersonation.
the protections offered in the Standard Policy, ظ Someone else owns an interest in your title.
the Homeowner’s Policy extends coverage
beyond the issue date. 3. ALTA Extended Owners Policy:
The Extended Owner’s Policy offers the most
Examples include: extensive title insurance as it covers not only
ظ You cannot use the land because use as a matters of Public Record but also insures issues
single family residence violates an existing that are revealed as a result of a physical inspection
zoning law or regulation. or survey of the property. This is commonly issued
ظ You are forced to remove your existing for high value residential properties, large parcels of
structures which encroach onto an vacant land and commercial properties.
easement or over a building set-back line
even if the easement or building set-back Policy coverage examples include:
line is excepted in your title policy. ظ You are forced to remove your existing structures
ظ Your neighbor builds any structure after the because they encroach onto our neighbor’s land.
policy date, other than boundary walls or ظ Someone else has a legal right to, and does,
fences, which encroach onto your land. refuse to perform a contract to purchase the
ظ You do not have both actual vehicular and land, lease it or make a mortgage loan on it
pedestrian access to and from the land because your neighbor’s existing structures
based upon a legal right. encroach onto the land.
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