Thursday, October 25, 2007

query: what happens if there is an issue with title insurance after it is issued

I'm not sure what you mean but let me take a stab at it.

If you find an error in the policy, you can contact the title company and request a corrective endorsement. You have to be certain however that it's a true error. We have to hope that you really read the title commitment before you closed because some things can't be fixed or changed later without a lot of effort, if at all.

For instance, let's say you are in your new home and you receive your title policy and now you finally have time to sit and relax and read it and OH MY HEAVENS you find the property described is not the property you thought you were buying. Yes, this happens, especially in cases were the sellers own more than one parcel. In that case, the title agent would have to research the title again, obtain a corrective deed then correct the policy. You should expect to pay for the extra work because you had an obligation to read and review prior to closing.

I hope that helps.

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