Grosse Pointe Farms, MI
1 Kercheval Ave.
Grosse Pointe Farms, MI 48236
586-778-4990
Traverse City, MI
802 South Garfield Ave, Suite C
Traverse City, MI 49686
231-922-9600
May 20, 2015, 5:04 pm

REAL ESTATE - Title Policy Coverage and Transfer of Ownership

     Often times property owners decide to change the fashion in which they are holding title to a property without consideration of all of the potential impact.  Perhaps the reason for transferring title is that they are performing estate planning and want to transfer the property to a trust.  Or maybe they are looking to limit liability on a family cottage and transfer it to a corporate entity like an LLC.

     In performing such transfers one aspect that is sometimes overlooked is the impact on the existing title policy.  In some circumstances the title policy will extend coverage when there is such a transfer.  But coverage in a transfer situation is very fact specific and will be dependent upon things such as the particular title policy form that was utilized and the entity or individual which will be receiving the property.  Sometimes an endorsement will be needed to continue coverage after the transfer.

     If continuing title coverage is a consideration for you then you need to dig out your title policy and place a call to your title agency.  If perhaps the title agency which assisted you with your closing is no longer in business you can call another agency who handles the carrier which issued your policy.  They will be able to advise you as to whether your title policy coverage will automatically continue or whether you need an endorsement to continue coverage.

 

**Please note that the post is intended for informational purposes only and cannot be construed as providing legal advise.

 

Posted by Stacey Lee Isles at 5:04 pm
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