COMMERCIAL TITLE INSURANCE:
This information was provided by Kim Case Audia, Commercial Manager/Owner of Transnation Title Agency. The Central Division Commercial team consists of Kim, Kathy Gruhn Ward and Julie Brown, with the 3 having an average of 29+ years in the business! For questions or assistance with your commercial transactions, you can reach Kim and the company website as follows:
KIM CASE AUDIA
Commercial Manager/Owner
Direct 517.318.4366 | Office 517.318.4360 | Fax 517.318.4361 |
kaudia@transmi.com | www.transmi.com
1675 WaterTower Place, Suite 200 | East Lansing MI 48823
Resident Producer License # 0290765
What does an owners title insurance policy do for me as the buyer?
Owners Policy gives coverage to the Insured (Buyers) as to the following:
1) How title is vested
2) Defects, liens, or encumbrances on the Title which include but are not limited to matters of:
- Forgery
- Fraud
- Undue Influence
- Incompetency
- Incapacity
- Impersonation
3) Marketability of Title
4) Access to and from the Land
5) Violation or enforcement of Governmental Laws and regulation and the exercise of the rights of Emanate Domain as set forth in a Notice Recorded in the Public Record
6) Any taking by a governmental body that has occurred and is binding on the rights of a purchaser for value without Knowledge
7) A Title defect due to a transfer that constitutes a preferential Transfer under Federal bankruptcy, State insolvency, or similar creditors rights laws
8) Defects Liens or encumbrances that are recorded between the date of the Policy and the recording of the Conveyance instrument in favor of the insured
As a seller why should I pay for this policy that belongs to the buyer?
Let me turn the question on the Seller ... why would I (as a buyer) pay someone to determine that you (as the Seller) have an interest in the subject property, and that such interest is worth purchasing?
Why would I (as the Buyer) rely on the Seller response to the following questions?
- Does the Seller own some or all of the subject property?
- Does the Seller hold Title alone, or are there other parties of interest?
- Does the Seller hold Title individually or is title vested in an Entity that the Seller may have some interest in?
- Were all prior interest in the Seller’s Chain of Title properly removed?
- Are there Mortgages, liens, or other encumbrances against the subject property?
- Are the Taxes and Assessment paid Current?
- What issues are being excepted, and how will they affect my intended use of the subject property?
Don’t forget that once the Buyer obtains satisfactory answers to such questions, you (as Seller) will most likely be required to execute a Warranty Deed in favor of the Buyer, and although you are not an insured party under the Buyers Owner’s Policy, you do get some measure of “Assurance” that someone has properly investigated Title and is willing to insure the Buyer of such findings.
Why do I need a lenders policy if I already have the Owner’s policy…
You don’t ... however ... your Lender will require that you purchase a Lender’s Policy as such gives coverage to the Lender as to the following:
1. Insures the lender, it’s successors and/or assigns
2. Insures as to the validity, enforceability and lien priority of the Mortgage
3. Policy terminates upon discharge of Mortgage
What does a selling/buying entity need to provide the title company?
Below is a flyer regarding types of entities and the authority requirements that may be required: