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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