Table of Contents
Title insurance is an important part of real estate transactions. It protects buyers and lenders from potential issues with property ownership. Understanding the details of coverage, including exceptions and limits, is essential for making informed decisions.
What Are Title Insurance Exceptions?
Exceptions are specific issues that are not covered by the title insurance policy. These can include existing liens, easements, or other claims against the property. It is important for buyers to review these exceptions carefully before closing.
Coverage Limits and Their Significance
Coverage limits define the maximum amount the insurance company will pay in case of a claim. These limits are usually based on the property’s purchase price or loan amount. Knowing these limits helps buyers understand the extent of their protection.
Common Exceptions to Watch For
- Unpaid property taxes
- Existing liens or mortgages
- Easements or rights of way
- Boundary disputes
- Restrictions or covenants