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TJ, Esq.
TJ, Esq., Attorney
Category: Real Estate Law
Satisfied Customers: 12399
Experience:  JD, MBA
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I purchased a home via the Wayne County Tax Sale, red a

Customer Question

I purchased a home via the Wayne County Tax Sale, hired a lawyer to file a Quiet Title Action and obtained a Mortgage Survey. I am in the process of obtaining Title Insurance “without exception”. The Commitment for Title Insurance states that the policy is issued without standard exceptions but then they add 9 requirements and 10 exceptions that are apparently “non standard”. How should I proceed?
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  TJ, Esq. replied 1 year ago.

Hello and thank you for the opportunity to assist you. My name is ***** ***** I'll be glad to help if I can. However, I'm not sure what you're asking when you ask "How should I proceed?" Can you clarify? I just want to make sure that I understand what legal information you are seeking. Thank you.

Expert:  TJ, Esq. replied 1 year ago.

Hello again. I didn't hear back from you, so I'm just checking in to make sure that you don't need more help on this issue. Thank you!

Customer: replied 1 year ago.
Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call. Let me know if you need more information, or send me the service offer(s) so we can proceed.
Customer: replied 1 year ago.
Here are their exceptions:1. Rights or claims of parties in possession not shown by the Public Records.
2. Any facts, rights, interests or claims not shown by the Public Records but that could be ascertained by an
accurate survey inspection of the Land or by making inquiry of persons in possession thereof of the Land.
3. Easements, claim of easements or encumbrances that are not shown in the Public Records and existing water,
mineral, oil and exploration rights.
4. Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title including
discrepancies, conflicts in boundary lines, shortage in area, or any other facts that would be disclosed by an
accurate and complete land survey of the Land, and that are not shown in the Public Records.
5. Any lien or right to lien for services, labor or material theretofore or hereafter furnished, imposed by law and not
shown by the Public Records.
6. The lien, if any, of real estate taxes, assessments, and/or water and sewer charges, not yet due and payable or
that are not shown as existing liens in the records of any taxing authority that levies taxes or assessments on real
property or in the Public Records; including the lien for taxes, assessments, and/or water and sewer charges,
which may be added to the tax rolls or tax bill after the effective date. The Company assumes no liability for the
tax increases occasioned by the retroactive revaluation or changes in the Land usage or loss of any homestead
exemption status for the insured premises.
7. Defects, liens, encumbrances, adverse claims or other matters, if any created, first appearing in the public
records or attaching subsequent to the effective date hereof but prior to the date the Proposed Insured acquires
for value of record the estate or interest or mortgage thereon covered by this commitment.
8. Building set back line over subject property as shown on in instrument recorded in Liber 11406, Page 480, Wayne
County Records.
9. Easements over subject property as shown on the recorded plat.
10. Covenants, conditions and restrictions and other provisions but omitting restrictions, if any, based on race, color,
religion, sex, handicap, familial status or national origin as contained in instrument recorded in Register
Customer: replied 1 year ago.
here are the Conditions:
Conditions 2&3:
2. If the proposed Insured has or acquired actual knowledge of any defect, lien, encumbrance, adverse claim or
other matter affecting the estate or interest or mortgage thereon covered by this Commitment other than those
shown in Schedule B hereof, and shall fail to disclose such knowledge to the Company in writing, the Company
shall be relieved from liability for any loss or damage resulting from any act of reliance hereon to the extent the
Company is prejudiced by failure to so disclose such knowledge. If the proposed Insured shall disclose such
knowledge to the Company, or if the Company otherwise acquires actual knowledge of any such defect, lien,
encumbrance, adverse claim or other matter, the Company at its option may amend Schedule B of this
Commitment accordingly, but such amendment shall not relieve the Company from liability previously incurred
pursuant to paragraph 3 of these Conditions.
3. Liability of the Company under this Commitment shall be only to the named proposed Insured and such parties
included under the definition of Insured in the form of policy or policies committed for and only for actual loss
incurred in reliance hereon in undertaking in good faith (a) to comply with the requirements hereof, or (b) to
eliminate exceptions shown in Schedule B, or (c) to acquire or create the estate or interest or mortgage thereon
covered by this Commitment. In no event shall such liability exceed the amount stated in Schedule A for the
policy or policies committed for and such liability is subject to the insuring provisions and Conditions and the
Exclusions from Coverage of the form of policy or policies committed for in favor of the proposed Insured which
are hereby incorporated by reference and are made a part of this Commitment except as expressly modified
herein.
4. This Commitment is a contract to issue one or more title insurance
Customer: replied 1 year ago.
This is what I plan to email to the Title Company:
I have repeatedly asked that the policy be issued “without exceptions”. To accomplish this I have supplied you with all requested documentation, a mortgage survey and everything else you asked for. Remove all of Schedule B-I (Requirements) as you are in possession of every item on this list. Please remove all of B-II (Exceptions) since they are disposed of by one of the following: 1) Judges Order 2) Survey 3) Title Search 4) Condition 2 & 3 of this Policy.
Customer: replied 1 year ago.
Are these exceptions reasonable?
Expert:  TJ, Esq. replied 1 year ago.

Hello again.

You may be able to find a policy, if you shop around, that protects you against at least some claims that are not in the public record. You'll need to call around to other insurers to see what they will offer. Bear in mind that the insurer has no obligation to give you a policy without such exceptions, however. It's a private business with its own underwriting, after all.

One of the main issues here is that the insurer is not likely going to step into this situation blind, which is why they protect themselves by stating that they will not insure against items not in the public record. They underwrite by reviewing the public record. On the other hand, I have represented clients against title insurance companies in which the policy was fairly broad and did cover defects not in the public record. For example, I sued Fidelity not that long ago over a lien that was not in the public record. Fidelity paid my client. So it may be possible to get what you're looking for if you shop around.

Does that answer your question? Please let me know if you need clarification, as I am happy to continue helping you until you are satisfied.

Expert:  TJ, Esq. replied 1 year ago.

Hello again. I didn't hear back from you, so I'm just checking in to make sure that you don't need more help on this issue. If not, then please remember to provide a positive rating via the stars (and note that your positive rating is the only way that I'll get credit for helping you, so I greatly appreciate it). Thank you!