Maher Muhtaseb - Alamo Title Company

Browse Search

~ 1. DEFINITION OF TERMS. The following terms when used in lhis Policy mean: (a) "insured": lhe Insured named in Schedule A, and subject 10 any righls or defenses lhe Company would have had againsllhe named Insured, those who succeed to the interesl of lhe named Insured by operation of law as distinguished from purchase including, bul nol limiled 10, heirs, dislribulees, devisees, survivors, personal representatives, next of kin, or corporale, partnership or fiduciary successors, and specifically, wilhoul Iimitalion, the following: (i) the successors in inlerest 10 a corporation resulting from merger or consolidalion or lhe dislribution of lhe assels of the corporalion upon partial or complele Iiquidalion; (ii) the partnership successors in inlerest 10 a general or limited partnership which dissolves but does not terminate; (iii) the successors in inlerest 10 a general or Iimiled partnership resulling from lhe dislribution of lhe assels of lhe general or limiled partnership upon partial or complete liquidalion; . (iv) the successors in inleresl to a joinl venlure resulling from the dislribution of lhe assels of lhe joinl venlure upon partial or complele liquidalion; (v) the successor or substitute trustee(s) of a trustee named in a written trust instrument; or (vi) lhe successors in inlerest 10 a truslee or lrusl resulting from lh~ distribulion of all or part of the l\ssels of lhe lrusllo lhe beneficiaries thereof. (b) "insured claimanr: an Insured claiming loss or damage. (c) "knowledge" or "known": actual knowledge, not constructive knowledge or notice that may be impuled to an Insured by reason of lhe public records as defined in this Policy or any olher records which impart conslructive notice of matters affecting lhe land, (d) "land": lhe land described or referred 10 in Schedule A, and improvements affixed lhereto thai by law conslitute real property, The term "land" does not include any property beyond lhe lines of lhe area described or referred to in Schedule A, nor any right, title, inleresl, estale or easemenl in abutting slreels, roads, avenues, alleys, lanes, ways, or walerways, but nolhing herein shall modify or Iimillhe extenllo which a righl of access 10 and from the land is insured by lhis Policy. (e) "mortgage": mortgage, deed.oMrust,-lrusldeed,.or"olher-SIlCu!ilY..inslrt!ment ,. -....__ ___ _ _ . _ (f) "public records": records established under stale stalutes at Dale of Policy for llie purpose of imp-atting'con-slructiVe'noliceof matters.relaling 10 'real-.~ property to purchasers for value and withoul knowledge, Wilh respect to Section 1 (a)(iv) of lhe Exclusions From Coverage, "public records" also shall include environmental prolection liens filed in the records of lhe clerk of lhe Uniled Stales dislrict court for lhe dislrict in which the land is located, (g) "access": legal rig hi of access 10 lhe land and nollhe physical condilion of access, The coverage provided as 10 access does nol assure lhe adequacy of access for lhe use inlended, 2. CONTINUATION OF INSURANCE AFTER CONVEYANCE OF TITLE. The coverage of this Policy shall conlinue in force as of Dale of Policy in favor of an Insured only so long as the Insured relains an estale or inlerest in lhe land, or holds an indebledness secured by a purchase money mortgage given by a purchaser from lhe Insured, or only so long as the Insured shall have liability by reason of covenants of warranty made by the Insured in any transfer or conveyance of the eslate or interest This Policy shall nolconlinue in force in favor of any purchaser from the Insured of either: (i) an estate or inlerest in the land, or (ii) an indebledness secured !:Iy a purchase money mortgage given lolhe Insured, ' 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT. The Insured shall nolify lhe Company promptly in wriling: (i) in case of any litigation as set forth in Section 4(a) below, or (ii) in case knoWledge shall come to an Insured hereunder of any claim of tille or intereslthal is adverse to lhe tille 10 the estate or inlerest, as insured, and that might cause loss or damage for which lhe Company may be liable by virtue of this Policy, If prompl nolice shall nol be given 10 lhe Company, lhen as 10 the Insured all liability of lhe Company shall terminate with regard 10 the matter or matters for which prompl nolice is required; provided, however, that failure 10 nolify the Company shall in no case prejudice the rights of any Insured, under lhis Policy unless the Company shall,be -prejudiced by lhe failure and then only 10 the extenl of the prejudice. When, after lhe dale of the Policy, lhe Insured notifies the Company as required herein of a lien, encumbrance, adverse claim or olher defect in lille 10 the estale or interest in the land insured by this Policy lhat is not excluded or excepted from lhe coverage of this Policy, the'Company shall prompUy invesligale lhe charge 10 determine whether,the lien, encumbrance, adverse claim or defect is valid and nol barred by law or sta~ute, The Company shall nolify the Insured in wriling, wilhin a reasonable lime, of its delerminalion as 10 the validitY or invalidily of the Insured's claim or charge under the Policy, If the Company concludes thallhe lien, encumbrance, adverse claim or defect is nol covered by thjs Policy, or was olherwise addressed in the closing of the lransaction in connection wilh which lhis Policy was issued, lhe Company shall specifically advise lhe Insured of lhe reasons of its delermination. If lhe Company concludes lhat lhe lien, encumbrance, adverse claim or defect is valid, the Company shall take one of lhe following actions: (i) inslilute the necessary proceedings to clear the lien, encumbrance, adverse claim, or defect from the lille 10 the eslate as insured; (ii) indemnify the Insured as provided in this Policy; (iii) upon paymenl of appropriale premium and charges lherefor, issue 10 lhe Insured Claimanl or 10 a subsequent owner, mortgagee or holder of lhe estale or inleresl in lhe land insured by this Policy, a Policy of Title Insurance without exception for the lien, encumbrance, adverse claim or defect, said Policy 10 be in an amount equal 10 the currenl value of lhe property or if a Mortgagee Policy !he amount of the loan; (iv) indemnify another title insurance company in connection wilh . its issuance of a policy(ies) of tiUe insurance withoul exception for the lien, encumbrance, adverse claim or defect; (v) secure a release or other document ;< . v' CONDITIONS AND STIPULATIONS The following matters are expressly excluded from lhe coverage of this Policy and lhe Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of: 1, (a) Any law, ordinance or govemmental regulalion (including but nollimiled to building and zoning laws, ordinances, or regulations) restricting, regul~ting, prohibiting or relaling to: (i) the occupancy, use, or enjoyment of lhe land; (ii) lhe character, dimensions or localion of any improvement now or hereafter erected on lhe land; (iii) a separation in ownership or the change in lhe dimensions or area of lhe land or any parCel of which the land is or was a part; or (iv) environmental prolection, or the effect of any violation of lhese laws, ordinances or governmental regulations, excepl to the exte~ that a nolice of the elJforcement thereof or a nolice of a defect, lien or encumbrance resulting from a violalion or alleged violation affecling the land has been recorded in the public records at Date of Policy, (b) Any governmenlal police pOwer nol excluded by (a) above, except to lhe extenl that a nolice of the exercise thereof or Ii nolice of a defecl: lien or encumbrance resulling from a violalion or alleged violalion affecling lhe land has been recorded in lhe public records at Dale of Policy. 2, Righls of eminenl domain unless nolice of the exercise lhereof has been recorded in the public records at Dale of Policy, but nol excluding from coverage any taking that has occurred prior 10 Dlile of Policy which would be binding on lhe righls of a purcha~er for value wilhout knowledge, '-, . 3. Defects, liens, encumbrances, adverse claims or other matters: (a) crealed, suffered, assumed or agreed 10 by the Insured Claimant; (b) not known 10 the Company, nol recorded in the public records al Dale of Policy, bul known to lhe Insured Claimanl and not disclosed in writing 10 the Company by lhe Insured Claimanl prior 10 the dale lhe Insured Claimant became an Insured under this Policy; (c) resulling in no loss or damage 10 the Insured Claimanl; (d) attaching or crealed subsequenl to Dale of PoliCY; (e) resulling in loss or damage that would nol have been sustained if lhe Insured Claimanl had paid value for the estate or inleresl insured by lhis Policy, 4, The refusal of any person 10 purchase, lease or lend money on lhe eslale or inleresl covered hereby in the land described in Schedule A because of unmarketability of the lille, 5, Any claim which arises out of lhe lransaclion vesling in the person named in paragraph 3 of Schedule A lhe eslate or interest insured by lhis policy, by reason of lhe operalion of federal bankruptcy, stale insolvency, or other stale or federal credilors' rights laws thai is based on eilher: (i) lhe transaction creating lhe eslale or inleresl insured by this Policy being deemed a fraudulent conveyance or fraudulent transfer or a voidable dislribution or voidable dividend; (ii) lhe subordinalion or recharacterizalion of lhe eslale or inleresl insured by this Policy as a resull of the applicalion of lhe doclrine of equitable subordination; or (iii) lhe transaclion creating th!l estale or inleresl insured by lhis Policy being deemed a preferential lransfer excepl where lhe preferenlial lransfer resulls from lhe failure of lhe Company or ils issliing' agent lo-lii'rfely filli'foneccird'the"instrtirrienl'of"transfer-to-the-Insured-after-delivery or'lhe-failure .such-recordalion-to'impart-nolice.to-a~. '.- --'-'-= purchaser for value or a judgmenl or lien credilor, EXCLUSIONS FROM COVERAGE "