Listed are potential scenarios in buying a home.
For additional explanations please contact your local escrow office. These are situations that have created the need for a little extra Title Insurance.
Scenario 1
The current homeowners purchased their property eight months ago. The city notifies them that the Seller’s addition on the home has been “red-tagged” because it is not legally permitted.
Their Choices are:
• Pay the permit fees and bring the addition up to code.
• Tear down the room.
The homeowners contact their agent questioning why an unpermitted room was not disclosed to them prior to purchasing the property. The agent’s Broker gets involved and contacts the title company who insured the property. Under the ALTA Residential Policy, without the added protection, the title company denies the claim on its policy.
Scenario 2
The current homeowners purchased their property eight months ago. The homeowners association notifies them that their seconds story room addition, built by the former owner is in direct violation of the CC&R’s and must be removed. The homeowners association also informs them that the orange ca-sitas roof tile installed prior to purchase violates the restrictions in the CC&R’s and must be changed. The homeowners contact the agent inquiring why they didn’t go over the CC&R’s prior to closing. Under the ALTA Residential Policy, without the added protection, the title company denies the claim on its policy.
Scenario 3
The current homeowners are in escrow to finance the property. The preliminary report shows a second deed of trust on the property. The homeowners claim they never executed a second deed of trust and request a copy of the signed document. To their dismay, their names are forged on the trust deed. Under the ALTA Residential Policy, without the added protection, the title company denies the claim on its policy.
Scenario 4
The current homeowners ask their next door neighbor to stop building a patio cover which is encroaching onto their property. The neighbor continues building the cover. Under the ALTA Residential Policy, without the added protection, the title company denies the claim on it’s policy.
In some of these cases, a little extra title protection would have protected the buyers interests. Please be sure to talk to your Escrow and Title Rep before making any decisions.