Let’s look at what’s covered and, perhaps more importantly, what’s not covered by a land Title Policy. Plus, where to find coverage for land disputes.
What is a Title Policy? Generally speaking, a title policy is going to offer insurance guaranteeing that the property is free from any defects or encumbrances on the title.
Something to keep in mind, this does not offer insurance if there are any boundary disputes or encroachments from neighboring structures on the property. We always recommend to get this additional coverage if you think there are going to be disputes. For example, if there is a neighboring property that has a structure that is going to encroach on your property. This additional coverage is found under section 6.A. in the TREC Farm and Ranch contract and the TAR contract has provisions for this as well.
What this does is it amends the title commitment section B item 2 to read shortages in the area so it will cover additional insurance on boundary disputes. What shortages in the area means is that the title company is not offering insurance if there are ever any shortages on surveys that are found in the future. For example, if one survey shows 100 acres, one shows 99.5, surveyors make mistakes a title company’s not going to offer insurance on that.
Another thing to keep in mind are the T-19 endorsements. Ironically, these are not found on the TAR or the TREC contract. There are various T-19 endorsements such as 19.1, 19.2, 19.3. Always we recommend you consult with an attorney, but these typically cover any disputes with utility lines or damage caused from mineral extraction.
Feel free to reach out to us with questions or other topics you’d like to see covered.
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