A policy of title insurance is an agreement entered into by two contracting parties and which each party to the contract can sue and be sued. Given the condition that each of the contracting parties has come to a consensus and both have fulfilled their various obligations to the agreement, a binding contract in law has come into existence between both parties. If all the essentials of a binding contract are present; and with the assumption that there is nothing to cancel any feature in the contract, the terms of the contract can be set by the parties to it. It should however be noted that the insurer will have more knowledge on what both parties are getting into than the insured, whereas, both parties are supposed to operate at par with each other. Thus, the services of an attorney will be needed by the insured.
There are cases in which an agreement may be declared invalid because the terms to that agreement were vague. It is therefore necessary to be sure that the terms of the contract do not breach any legal provision. It should be kept in mind that there is a legal provision of the law not enforcing any illegal contract. This will also include contracts that are void because of vagueness.
This will also apply in cases of title insurance and the law will come in to redress any provision of the insurance contract which is detrimental to the landowner's title to land. A flaw that can also affect the title insurance contract is any flaw declared by the courts. For example if the terms of the contract are ambiguous or there is presently a court action to determine insolvency of the former owner of that piece of land. Remember that if such issues are undecided, the burden of redeeming them may be transferred to the new owner of that piece of land.
A Matter of Variation among Insurers
Among all the active participants in the title insurance industry CJ Singh, not everything will sound the same. It is true that the procedure may be the same. But insurers may have varying policies towards the insured and this may be because of their dislike for the type of hazard which they are insuring against. For this reason, a parameter may be set but the type of hazard may compel the insurer to take more care in determining the rate of premium and this may be higher than what the insured will normally expect.
Given that the insured has a legal right to decide or opt for an insurer of his or her choice, he or she has the duty of care to examine the policies presented by the insurers. It is necessary to carry out comparison shopping ahead of deciding on what is considered best.
As soon as coverage is instigated in security of title insurance, title information will be made available and the option of an exact coverage will also be made available. This is when the future owner has to be very intelligent because he or she has to be very conscious of the choices and also employ a plan to take care of the risk. Remember that he or she has to seriously pay particular attention to those areas where he finds himself open to risk.
