Title
examination.
The actual examination and
interpretation of the title is done by highly skilled title
examiner, not attorney, whose task is to review each document
and create what is known as chain of title. A chain of talent is
an unbroken history all the title transfers. In addition to
identifying the correct owner, the title examiner determines
what and how various encumbrances, such as taxes, deeds of
trust, easements, and so on, affect the ownership. When the examination
is completed to date is compiled into a preliminary title
report which lists the owner's name, the legal description of
the property, the status of property taxes and special
assessments. This
preliminary title report does not insure, but is the basis
upon which a title company is willing to insure the owners
title.
Types
of title insurance policies.
1. Standard owner's
policy, which insures the owner for the amount of the purchase
price.
2. Standard lender's
policy, which insures the lender for the amount of the
loan.
3. Standard joint
protection policy, which co- insures the owner and lender
under one policy.
Under
the standard policy, the title company does not make a
physical inspection property and therefore excludes from
coverage unrecorded items that could affect the title. For example,
unrecorded easements are excluded, as well as the rights of
parties in possession other than the owner. Also excluded our
violation of environmental laws, zoning and other government
ordinances affecting the use of the property.
