September 01, 2011

Basic Title Coverage and Related Agreements

James P. McAndrews

From Commercial Real Estate Practice Manual With Forms, Second Edition, Chapter 10

Title Policy

In most states today title insurance policies are standard in form. A title insurance policy is considered a contract of indemnity and not a guaranty.1 In determining liability under the policy, the entire contract, including the exclusions, exceptions, and conditions, is examined.2 As a general rule, ambiguities are construed in favor of the insured and against the insurer.3 The first page of a title policy contains the insuring provisions, subject to the exceptions to coverage that appear in “Schedule B” of the policy and the “Exclusions from Coverage,” both of which will be discussed later.

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