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How Title Indemnity Policies Function

Marc Rovner is an East Rockaway, New York, attorney who is active with BETA Abstract, LLC, where he provides real estate title insurance legal services. Attorney Marc Rovner has extensive knowledge of title insurance requirements in his home state and has taught on the subject in college settings. A title indemnity policy comes into play when a property is being leased out or sold and the prospective tenant or purchaser seeks confirmation that the seller has the legal right to transfer the property title. In addition, the buyer seeks to establish that no title defects exist that would impact their ownership interests. The same principle applies to lenders that take security on a property with the aim of selling in the future. Common title defects include not having building regulations’ consent or planning permission for the type of development on the property. Another common issue involves lack of easements, or rights that benefit the property. This may include restrictions against using utilities or entering third-party-owned land to repair utilities for a structure on the property. Title indemnity policies do not repair or cure the defect, but rather offer financial compensation in cases where the defect results in actual loss (up to stated limits). In most cases, the title indemnity limit is equal to the property value or the gross development value of a site to be developed. In addition, it may be equivalent to the mortgage amount obtained on the property.

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Marc Rovner
Marc Rovner is an East Rockaway, New York, attorney who is active with
BETA Abstract, LLC, where he provides real estate title insurance legal
services. Attorney Marc Rovner has extensive knowledge of title insurance
requirements in his home state and has taught on the subject in college
settings.
A title indemnity policy comes into play when a property is being leased
out or sold and the prospective tenant or purchaser seeks confirmation
that the seller has the legal right to transfer the property title. In
addition, the buyer seeks to establish that no title defects exist that
would impact their ownership interests. The same principle applies to
lenders that take security on a property with the aim of selling in the
future.
Common title defects include not having building regulations’ consent or
planning permission for the type of development on the property.
Another common issue involves lack of easements, or rights that benefit
the property. This may include restrictions against using utilities or
entering third-party-owned land to repair utilities for a structure on the
property.
Title indemnity policies do not repair or cure the defect, but rather offer
financial compensation in cases where the defect results in actual loss
(up to stated limits). In most cases, the title indemnity limit is equal to
the property value or the gross development value of a site to be
developed. In addition, it may be equivalent to the mortgage amount
obtained on the property.
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How Title Indemnity Policies Function

  • 2. Marc Rovner is an East Rockaway, New York, attorney who is active with BETA Abstract, LLC, where he provides real estate title insurance legal services. Attorney Marc Rovner has extensive knowledge of title insurance requirements in his home state and has taught on the subject in college settings.
  • 3. A title indemnity policy comes into play when a property is being leased out or sold and the prospective tenant or purchaser seeks confirmation that the seller has the legal right to transfer the property title. In addition, the buyer seeks to establish that no title defects exist that would impact their ownership interests. The same principle applies to lenders that take security on a property with the aim of selling in the future.
  • 4. Common title defects include not having building regulations’ consent or planning permission for the type of development on the property. Another common issue involves lack of easements, or rights that benefit the property. This may include restrictions against using utilities or entering third-party-owned land to repair utilities for a structure on the property.
  • 5. Title indemnity policies do not repair or cure the defect, but rather offer financial compensation in cases where the defect results in actual loss (up to stated limits). In most cases, the title indemnity limit is equal to the property value or the gross development value of a site to be developed. In addition, it may be equivalent to the mortgage amount obtained on the property.