Can a prior owner’s title insurance policy be used as a starting point for the search?
Yes, as long as the underlying search for the insurance report or policy covers at least the preceding thirty years. Section 15(C) of Rule 87 provides various evidence the search may be based upon. Any policy upon which the title insurance agent is willing to rely, subject to a determination of insurability of title in accordance with the title insurer’s underwriting practices may be used as a starting point. However, agents should be aware that it is not the prior POLICY that provides compliance with the regulation; it is the underlying EVIDENCE of a thirty year search. A policy issued prior to the subject Act and Rule might not have been written from a thirty year chain and may not report all matters of record within the thirty year search period as required. Using such a policy as a starter policy would be in violation of the regulation. Agents should always be able to produce the thirty year search EVIDENCE, not just a prior policy. Regardless of whether a prior policy is used as a
Related Questions
- If the trademark search finds a mark identical or similar to mine but the owner is no longer in business (or the mark is no longer being used by that business) am I free to use and register it?
- Why on earth does anyone need Owners Title Insurance if a Title Search has already been done?
- Can a prior owner’s title insurance policy be used as a starting point for the search?
