Showing Title By Abstract Or Title Policy

Alteration of abstract to title policy

Title insurance in the real estate industry is an age old concept. But it was originated from abstract policy. Abstract is nothing but the summary of information regarding the property’s ownership history. They are not in use today but few people use it to the day only for extraction of information. It requires a man who produces the records to handle all the records and not a lawyer which is where the flaw presides. The accuracy of the records is not certain and that’s the reason the lenders look for more security. And this is how the title policy gained popularity.

Title insurance is of utmost importance for the commercial property buyers and it is advisable for them to know about it thoroughly. It protects the buyers and lenders from obstructions in the title of the property and non disclosed information, if any, about the same. Here’s an example: a corporation signs a contract to acquire a commercial estate property from a third party. On the day of moving in, another party barges in with the ownership papers, claiming that it had bought the same property earlier. In this case, if the corporation had filled for a title policy initially, it wouldn’t have to face this fraud.

If a problem arises regarding the title of an estate, the policy owner shall file a claim. After that the insurance company will review and investigate the facts mentioned. Action will be taken upon the same after severe scrutiny.

Showing Title By Abstract Or Title Policy
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Showing title by abstract or title policy.

For each parcel of real estate to be conveyed seller shall furnish a complete original abstract of title, continued at least to date that this offer is accepted, or an owner’s title policy in the amount of the total purchase price. The abstract or title policy shall show or insure good and merchantable title in fee simple, free and clear of all liens and incumbrances, excepting (1) those specifically set forth in this contract; (2) restrictions, conditions and utility easements created or reserved as a part of a general plan in and for the subdivision or subdivisions in which the properties are located; and (3) zoning ordinances and all legal highways. If title insurance is furnished, the policy or policies shall be issued by a solvent title insurance company authorized to do business in _________. If buyer desires or requires a survey, buyer shall pay cost of it.
If the title to all or part of the parcels to be conveyed is defective or unmerchantable, or if any part of property is subject to liens, incumbrances, easements, conditions or restrictions other than those excepted in this contract, or in event of any encroachment, seller shall have a reasonable time, not to exceed _________ days, after written notice of the fact, to remedy or remove any such defect, lien, incumbrance, easement, condition, restriction or encroachment. If seller is unable to remedy or remove, or to secure title insurance against such defect, lien, incumbrance, easement, condition, restriction or encroachment within the _________-day period, the amount of deposit, if any, shall be returned to buyer promptly.