Understanding Title Insurance and Easement Coverage

Title insurance is a type of insurance that protects homeowners and lenders from potential title issues. It ensures that the buyer has clear ownership of the property.

An easement is a right granted to a person or entity to use someone else's property for a specific purpose. Easements can be a significant concern when it comes to title insurance.

In some cases, easements can be a major issue for homeowners and lenders. For example, if a neighbor has an easement to use your property for a utility line, it can affect the value of your property.

Title insurance policies typically include coverage for easements, but the extent of the coverage can vary.

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Title insurance covers easements, but it's not a straightforward process. To insure an easement estate, title agents need a good metes and bounds description that's locatable on the ground.

The policy must also contain an exception for the terms and conditions of the easement, shown on Schedule A. This ensures that the title insurance policy accurately reflects the easement's details.

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Title to the easement must be checked, along with ad valorem taxes for the year it was created and all prior years. This is crucial to ensure that the easement is properly recorded and accounted for.

Here are the basic elements of an easement exception:

If an easement is properly released of record or judicially terminated or extinguished, it's not necessary to show it as a title exception.

Easements can be divided into two broad classes: easements appurtenant and easements in gross.

Easements may be further classified based on their duration, affirmative or negative character, and the presence or absence of a dominant and servient estate.

An easement in gross is a personal right to use another's land, not supported by a dominant estate.

It's a right that is attached to and vested in the person to whom it is granted, but not tied to any specific property.

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These types of easements are generally not insurable, except for public utility easements and those under Tex. Nat. Res. Code ch. 183.

A public utility easement can be insured without also insuring the title to the dominant estate, provided it's a right-of-way that forms or will form part of a predetermined right-of-way acquired or to be acquired by the utility company.

Here are the main types of easements:

Title insurance policies typically include provisions that address easements, but the specifics can vary depending on the jurisdiction and the type of policy.

If an easement is recorded on the property title, the title insurance policy will usually cover any issues related to it.

Most states require title companies to provide a standard policy form, such as the ALTA (American Land Title Association) form, which includes provisions for easements.

Title insurance can be a lifesaver when it comes to protecting your real estate investment from unexpected issues. It's essential to understand what it covers and what it doesn't.

Easements, for instance, can be a significant concern. Title insurance can help with issues like unknown easements, which can be a major problem if you're not aware of them.

There are two broad classes of easements: easements appurtenant and easements in gross. Understanding the type of easement you're dealing with can help you navigate potential issues.

The duration of the interest is another classification of easements that can be significant. If an easement is permanent, it's considered to run with the land and doesn't need to be mentioned in any instrument of conveyance.

Title insurance can cover issues like fraud and recording mistakes, which can affect the title of your property. However, it doesn't cover things that could happen in the future, like boundary disputes or legal issues that haven't happened yet.

Here's a quick rundown of what title insurance covers:

If you're dealing with a conservation easement in Texas, be sure to contact a Texas underwriter for guidance.