The two most important documents closely related to the conveyance of a real property are the title insurance policy and the land survey. The two are intricately intertwined because the title insurance companies would always need a boundary survey map or an ALTA survey of the property.
Most people do not understand the importance of these two documents. To make everything simple. You cannot borrow money from a lender if you do not have a title insurance policy and you cannot have a title insurance policy in the absence of a land survey.
Any encroachment, encumbrance, violation variation or adverse circumstance affecting the Title would be determined and disclosed by an accurate and complete ALTA survey of the property.
Why do you need to do this? The variety and degrees of complexity in land surveys such as the easements or flood hazard may not have been included by the land surveyor because the person who requested the work was not particularly concerned about these details.
Surveys that are part of a title examination for the purpose of a change in ownership of a parcel of land require coordination between the land surveyor and the title company. ALTA surveys and very specific and thought out.
When you receive copies of the survey, the title commitment and the encumbrance documents, never forget to spend sometime to review and examine the documents so you will know if there are matters that may adversely affect the value of the property.
To answer the question
A title insurance is a form of indemnity insurance that protects the holder from financial loss sustained from any defects found a title of a property. It protects real estate owners and lenders against claims for past occurrences.
To make sure about what goes around your property, you should try have a complete survey of the property before you make the purchase!
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