Transcription of Title Insurance Underwriting - eondirect.com
1 2/16/2012 1 Title Insurance Underwriting The Basics by Morrie Erickson, Attorney Underwriting - What is it? Dictionary definition Literally, to write one s name at the end of a policy, thereby becoming liable To insure To select or rate risks for Insurance Underwriting Title Insurance Analysis - known facts & circumstances Prior Title evidence Current public records search Actual knowledge Status of burdens attached to property 2/16/2012 2 Underwriting Title Insurance Assessment of risk Based on facts & circumstances Legal impact Practical realities Underwriter guidelines Recognition of what s important Knowledge of law Public Records Searches Search requirements Loan policies & IC 27-7-3-21 Underwriter guidance Prior/no prior policy Abstract of Title Public records - county offices Know which offices are relevant Know how they
2 Inter-relate Chain of Title Marketable record Title Unbroken chain extinguishes other interests & claims (IC 32-20-2-2) 50-year requirement (IC 32-20-3-1) Certain exceptions in IC 32-20-3-2 2/16/2012 3 Chain of Title Types of estates in land Fee simple Life estate Reversion Leasehold Equitable (land contracts) Chain of Title Grantor & Grantee Names, generally Misspellings Middle initials Change of name Chain of Title Disruptions to chain Death Incapacity Divorce Changes tenants by the entireties to TIC Lien may be created by award to one spouse Conveyance of less than all the property 2/16/2012 4 Conveyances Deeds Warranty (IC 32-17-1-2) General Special/limited Personal representative Decedents Supervised (IC 29-1-15-18) Unsupervised (IC ) Conveyances Deeds (continued) Personal representatives (continued) Guardians Sheriff or US marshal Quitclaim (IC 32-21-1-15) Conditional sales contracts (land contracts) Leases Conveyances Humans (natural persons) Individuals Co-owners Spouses Related Unrelated 2/16/2012 5 Conveyances Entities (Indiana & foreign)
3 Partnerships Limited partnerships Corporations Limited liability companies Limited liability partnerships Trusts Unincorporated associations Authority to sign Conveyances Estates Types Decedents Affidavits of heirship Small estates (IC 29-1-8-3) Guardians Authority to sign Powers of attorney Conveyances Types of ownership (humans & entities) Severalty (both) Tenants in common (both) Joint tenants with rights of survivorship (humans) No relationship needed between co-owners Survivorship Unity of time, Title , interest & possession 2/16/2012 6 Conveyances Types of ownership (humans & entities, cont.) Tenants by the entireties Different gender (non-same-sex) spouses required in Indiana Survivorship Protection from creditor of one spouse (some exceptions) Changes to TIC upon divorce Liens Voluntary Mortgages Vendor s lien Involuntary Mechanic s liens Judgments Federal Liens Involuntary (cont.)
4 Federal (cont.) In favor of USA Federal tax liens estate taxes Debt owed to USA In favor of others 2/16/2012 7 Liens Involuntary (cont.) State liens & judgments In favor of Indiana IDOR tax warrants (IC ) Inheritance taxes (IC ) Medicaid (IC et seq.) In favor of others Judgments in Indiana courts (IC 34-55-9-2) Multitude of other liens Lis pendens (IC 32-30-11-1) Liens County property taxes Municipal & local Weed removal (IC ) Ordinance violations (IC 36-1-6-20 Ditch assessment (IC 36-9-27-89) Demolish & repair (IC 36-7-9-1, IC 36-1-6-2 & IC 36-3-7-5) Access Public ROWs Streets Alleys Limited access Curb cuts Vacation 2/16/2012 8 Access Easements Documented Appurtenant In gross Prescriptive Licenses Other Burdens on Land O&G leases Utility easements Encroachments Previously documented Shown on land survey Adverse possession Problems Areas Unreleased mortgages Foreclosures Bankruptcy Discharge of debt Extinguishment of judgment lien Tax sales Abandoned RRs Mineral interests other than O&G leases 2/16/2012 9 The End Morrie Erickson Attorney/Owner TitlePlus!)
5 Bloomington, IN
