Title — continued from Page 44
appears in public records. (Tabachnick v. Ticor Title Ins. Co. (1994) 24 Cal.App.4th 70, 72). Finally, most title policies also provide
coverage if the property is inaccessible. • Exclusions from coverage Title insurance polices usually
exclude defects disclosed to the buyer in writing by, for example, the seller even though they do not appear in the title insurance policy. The disclosure, howev- er, must exactly describe the defect in order for the insured to have the exact knowledge required for there to be no coverage for the defect. A disclosure that might put a buyer on notice to conduct further investigations is not sufficient. For example, a disclosure by the seller that the neighbor uses the driveway of the property being sold is not sufficient to advise the buyer that the neighbor has a nine-foot easement along the property’s entire westerly property line. The exact defect must be disclosed. Title insurance does not cover gov-
ernmental restrictions on the land such as use or zoning ordinances that restrict the use of the property, nor does title insur- ance cover any changes to such rules. The rationale is that these restrictions on the use of the property are not defects or
problems with the insured’s ownership of the property but are rather blanket restrictions that apply to all properties in the zone or category that the property occupies. The defect must be specific to the insured piece of land. Title insurance also does not cover
eminent domain, because such actions are not a defect with the title to the land but are instead a subsequent government action. If, however, an eminent title pro- ceeding had started prior to the issuance of the title insurance policy that appeared in the public records but was not dis- closed in the policy, then that defect would be covered. Title insurance also does not protect
against misstatements regarding the lot size of the property because it is not a title defect – as long as the boundaries of the lot are correctly identified. (Golden Security Thrift & Loan Ass’n v. First American Title Ins. Co. (1997) 53 Cal.App.4th 250, 257-58.) • Lender policies Lenders also can take out title insur-
ance policies that protect their interest in the property against defects in title. They cannot, however, recover for diminution in value. They only can recover if the loan is not repaid. (Radian Guar., Inc., v. Garamendi (2005) 127 Cal.App.4th 1280, 1289.)
The unique aspects of title insurance Title insurance has the following
unique features: (1) The insured usually does not pay
for the coverage. (2) The premium is paid once at the
time of the issuance of the policy and never again. (3) The policy is almost always
selected by someone other than the insured. (4) The coverage is mandated in
most real property transactions. (5) It expires only when the insured
sells the property. (6) It insures against the risk of
something that has already occurred. Title insurance unlike all other insur-
ance, provides coverage for the insured only for acts that occurred before the pol- icy was issued. (Quelimane Co., Inc., v. Stewart Title Guar. Co.(1998) 19 Cal.4th 26, 41.) Again, the policy really insures the buyer against the insurance company’s mis- take in omitting a recorded defect in title from the attachment to the policy. All other forms of insurance insure against future events – a fire, a death, medical care, a lawsuit, etc.
See Title, Page 50
Some Cases Mean More Than Others Life Care Planning, Cost Projections
Certified Nurse Life Care Planner Certified Legal Nurse Consultant
Timeline Chronology Standards of Care
Medical Record Analysis and Interpretation Traumatic Brain Injury Chronic Pain
Birth-Related Injury
Labor & Delivery Analysis
Fetal Heart Tracing Interpretation
Kristen Jones, RN, CLNC, CNLCP
www.KristenJonesConsulting.com 48— The Advocate Magazine JUNE 2011 925.855.1956
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