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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] title insurance - just what is it ? Posted by hard money lender on March 31, 2008 at 11:06 AM i have a current property, to which the title company missed unpaid property taxes. i think most of us, myself included, thought that title insurance paid for any liens on the property that were not caught. this company is telling us that it will only pay should we lose money on the entire loan. The insured under the Policy is entitled to compensation for the existence of certain unlisted liens and encumbrances upon the real property security only to the extent that such matters inhibit full repayment of the loan underlying the insured deed of trust. See Lawrence v. Chicago Title, 192 Cal. App. 3d 70 (1987); and Cale v. Transamerica Title, 225 Cal. App. 3d 422 (1990). The amount of compensation is determined by comparing the return received from the real property notwithstanding all liens and encumbrances with the amount owed on the underlying loan. A title insurer is obligated to compensate its insured by the lesser amount between: a) the unpaid balance of the debt and b) the diminution in return caused by the unlisted lien or encumbrance. Lawrence, at p. 75. Follow Ups: Re: title insurance - just what is it ? Jerry - Ca. 1:53 PM, 04/06/08 (1) Re: title insurance - just what is it ? hard money lender 5:49 PM, 04/06/08 (0) Re: title insurance - just what is it ? Mer 1:44 PM, 04/02/08 (0) Post a Followup: Name : E-Mail : Subject : Comments: : i have a current property, to which the title company missed unpaid property taxes. i think most of us, myself included, thought that title insurance paid for any liens on the property that were not caught. this company is telling us that it will only pay should we lose money on the entire loan. : The insured under the Policy is entitled to compensation for the existence of certain unlisted liens and encumbrances upon the real property security only to the extent that such matters inhibit full repayment of the loan underlying the insured deed of trust. See Lawrence v. Chicago Title, 192 Cal. App. 3d 70 (1987); and Cale v. Transamerica Title, 225 Cal. App. 3d 422 (1990). The amount of compensation is determined by comparing the return received from the real property notwithstanding all liens and encumbrances with the amount owed on the underlying loan. A title insurer is obligated to compensate its insured by the lesser amount between: a) the unpaid balance of the debt and b) the diminution in return caused by the unlisted lien or encumbrance. Lawrence, at p. 75. [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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