Future Forgeries
Criminal forgery ring finds property that has a lot of equity in it. They forge a deed from the real homeowner to one of the forgers. They then go to a lender to get a home equity loan for $300,000. Forgers close home equity loan and take off for parts unknown with proceeds. Homeowner notices posting on his property for the foreclosure of loan he knows nothing about.
Forced Removal of Structure with No Building Permit*
Prior owner built garage without permits. This was not disclosed to Buyer and escrow closes. Buyer goes to city to get approval for new bathroom addition plans. City Inspector red-tags garage and orders it removed.
Future Encroachments
Years after close, Neighbor attempts to build a garage on land Homeowner knows extends onto her own property. Neighbor disputes that Homeowner owns that land and proceeds with building.
Reversion Coverage
When Homeowner purchased property, the title policy reflected a restriction in a deed from 1926 stating that the property must be used for religious purposes or title would revert to the original Grantor. Sometime after that the property was converted to residential use. Homeowner gets into an unrelated dispute with Neighbor who does a little property research and finds the restriction. Neighbor tracks down the descendant of the original grantor and sues Homeowner for violation of the restrictions.
Subdivision Law Violation Coverage*
Homeowner purchases house anticipating adding a living room. When she approaches the city for the addition permits, it is discovered that their lot is the result of an illegal lot split some time back. For this reason the City denies issuing a building permit.
Broader CCR Enforcement Coverage*
Previous owner landscaped the property in violation of the CC&R's. Homeowner gets a notice from the association to scrape and re-landscape to comply. Total Bill: $20,000.
Broader CC&R Violation Coverage
Previous owner built a deck that violates CC&R's. In the course of reselling the home, Homeowner finds out about the violation and dutifully discloses it to New Buyer. New buyer refuses to purchase because of the violation.
Map Coverage
When Homeowner purchases property, Title Company attached a parcel map showing lot dimensions that Homeowner relied on. When Homeowner goes to get permit for addition plans, he finds out there was a subsequent map correcting a clerical error on the first map. As a result the legal description is the same but the lot is smaller than thought. The permit is denied because the lot is not large enough for the addition.
Graduated Liability Coverage
Homeowner purchased property 6 years ago for $300,000. Is currently in contract to sell property for $450,000. In the course of the sale Homeowner finds out this his title was based on a forged deed and therefor does not belong to him. He recovers $450,000 from Title Company.
Transfer into Trust
Homeowner purchases property then transfers into her family trust without obtaining new title insurance. After this a title claim arises. She is covered.
*Subject to a deductible and maximum liability amount."
