Page 28 - Homeowners Manual - Utah

What should I look for when reading my commitment for title insurance?

You will be interested, primarily, in the extent of your ownership rights� This means you will want to review the
ownership interest in the property you will be buying and the description of the property, as well as any claims,
restrictions or interests of other people involving the property�

The report will note in a statement of vesting the degree, quantity, nature and extent of the owner’s interest in
the real property� The most common form of interest is “fee simple” or “fee” which is the highest type of interest
an owner can have in land�

Liens, restrictions and interests of others which are being excluded from coverage will be listed numerically as
“exceptions” in the commitment for title insurance� These may be claims by creditors who have liens or liens
for payment of taxes or assessments� There may also be recorded restrictions which have been placed in a
prior deed or contained in what are termed “CC&Rs (covenants, conditions and restrictions)�” Finally, interests
of third parties are not uncommon and may include easements given by a prior owner which limit your use of
the property� When you buy property, you may not wish to have these claims or restrictions on your property�
Instead, you may want to clear the unwanted items prior to purchase�

In addition to the limitations noted above, a printed list of standard exceptions and exclusions listing items not
covered by your title insurance policy may be attached as an exhibit item to your report� Unlike the numbered
exclusions, which are specific to the property you are buying, these are standard exceptions and exclusions
appearing in title insurance policies� The review of this section is important, as it sets forth matters which will
not be covered under your title insurance policy, but which you may wish to investigate, such as governmental
laws or regulations governing building and zoning�

Will the commitment for title insurance disclose the complete condition of the title to a property?

No� It is important to note that the commitment for title insurance is not a written representation as to the
condition of title and may not list all liens, defects and encumbrances affecting title to the land, but merely
report the current ownership and matters that the title company will exclude from coverage if a title insurance
policy should later be issued�
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