HomeMy WebLinkAbout770458.tiff cAUG 241977
c � Op�C S�V Recorded at.. —' o'clock M., .
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Reception No.......1228218 ---ivIARY_-r4MM_PRIERSMDT Recorder.
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THIS DEED, Made this /931( day of August , 19 77
1 between JACOB SCHNEIDER AND DOROTHY D. SCHNEIDER,
Husband and Wife,
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coof the
r-i County of Weld and State of Colorado, of the first part, and
cwt WELD COUNTY, a subdivision of the State of Colorado,
(t2 of the County of Weld and State of
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Colorado,of the second part:
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WITNESSETH, That the said parties of the first part,for and in consideration of the sum of TEN ($10.00)
en and other good and valuable consideration DOLLARS
r" to the said parties of the first part in hand paid by said party of the second part, the receipt whereof is
o hereby confessed and acknowledged, have granted, bargained,sold and conveyed,and by these presents do
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grant, bargain, sell, convey and confirm, unto the said part y of the second part, its heirs and assigns for-
ever, all the following described lot S or parcel of land,situate,lying and being in the
County of Weld and State of Colorado, to wit:
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QII Lots 5 and 6 in Block 5, Arlington Heights, Ii
in the City of Greeley, S!
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I TOGETHER with all and singular the hereditamenta and appurtenances thereto belonging,aging. or in anywise '
iappertaining, and the reversion and reversions, remainder and remainders, rents, issues and profits thereof, and all
j the estate, right, title, interest, claim and demand whatsoever of the said parties of the first part, either in law !!
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or equity, of, in and to the above bargained premises, with the hereditaments and appurtenances. I
TO HAVE AND TO HOLD the said premises above bargained and described with the appurtenances, unto the I
said part of the secondpart, its 'y heirs and assigns forever. And the said part ies of the first part, i
for them sel yes heirs, executors, and administrators, do covenant, grant, bargain, and agree to and
with the said part y of the second part, its heirs and assigns, that at the time of the ensealing and delivery !,
of these presents, being well seized of the premises above conveyed, as of good, sure, perfect, absolute and it
indefeasible estate of inheritance, in law, in fee simple,and ha ving good right, full power and lawful authority h
to grant, bargain, sell and convey the same in manner and form as aforesaid, and that the same are free and clear II
from all former and other grants, bargains, sales, liens, taxes, assessments and encumbrances of whatever kind or
naturesoever., except subject to 1977 taxes, agreements, restrictions, reservations
of record and covenants of record, and existing easements.
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and the above bargained premises in the quiet and peaceable possession of the said party of the second part, :'
its heirs and assigns against all and every person or persons lawfully claiming or to claim the whole I.
1,1 or any part thereof, the said parties of the first part shall and will WARRANT AND FOREVER DEFEND. II
IN WITNESS WHEREOF,the said part ies of the first part have hereunto set theirhand s i'
and seal S the day and year first above written.
acob S elder (SEAL)
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-- ; may (SEAL) I.
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orot ScI.
(SEAL) it
.,„.STATE, OF COLORADO, l i
p t }as.
.....t‘' t te....... �unty of Weld 1 79 The fill* inst. m4ht was acknowledged before me this day of August I'
19 77 QJ Sclin ider and Dorothy D. Schneider,. hu and and wife.
I Mysicia o exQtles; / 6 � 3 ) , 19 77.Witness my hand and official seal.
�b * •.. .. •'..1C. xeraryPubi;e.
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No.932. WARRANTY DEED.—For Pheteerapblc Ree rd.Bradford Publishing Co.,1824-44 Stout Street,Denver,Colored., —11-76
770458
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. •��'�� C Oti, Recorded at ._ /.—.I_- .._ o'clock �. .'.._._ ...�1�1.._.�._4,]9/
Rec. No. _1"/2:4.=.._: __. Mary Ann Feuerstein, Recorder
ORDINANCE NO. 12
RE: IN THE MATTER OF A SUPPLEMENTAL APPROPRIATION FOR THE YEAR
1977.
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BE IT ORDAINED by the Board of County Commissioners of
Weld County, Colorado, that it is necessary to make a supple-
- I
cs mental appropriation for the year 1977 , and
WHEREAS , the Board of County Commissioners of Weld County,
Colorado have been advised and informed by the Department of
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t1 Social Services of Weld County, Colorado, that it would be in
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the best interest of Weld County, Colorado to execute a purchase/
option on property described as Lots 5 and 6 in Block 5 , Arlington
r-11 Heights , City of Greeley, County of Weld, State of Colorado, which
is located at 1709 7th Avenue, Greeley, Colorado, which property
is now under lease by Weld County, Colorado, by and through the
Weld County Department of Social Services as lessee, and Jacob
Schneider and Dorothy D. Schneider, owners and lessors , and
WHEREAS , the lease covering said real estate was entered
into on the 23rd day of July, 1974 , for a term of thirty-six months
to expire August 1, 1977 , and
WHEREAS, paragraph number 10 of said lease gives Weld County,
as lessee, the option to purchase said real estate for the purchase
price of FORTY TWO THOUSAND DOLLARS ($42 , 000. 00) on or before
August 1 , 1977 , and
WHEREAS , the Board of County Commissioners of Weld County,
Colorado, deems it advisable and in the best interest of Weld
County to exercise said option and, by supplemental appropriation,
to appropriate the sum of $42, 000. 00, from the unappropriated
balance of the Weld County General Fund, for fiscal 1977 , and
deems said appropriation a loan from the General Fund to the
Social Services Fund, which amount is to be repaid by the Social
Services Fund to the Weld County General Fund during fiscal 1978 .
NOW, THEREFORE, BE IT ORDAINED by the Board of County Com-
missioners of Weld County, Colorado, that the following expen-
diture, to-wit:
1 . Social Services Fund for purchase of Lots 5 and 6 in
Block 5, Arlington Heights , City of Greeley, County of
Weld, State of Colorado -- $42, 000 . 00
Spy ..
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has been made necessary by an emergency caused by a contingency
which could not have been reasonably foreseen at the time of
the adoption of the 1977 Budget, and is hereby approved.
BE IT FURTHER ORDAINED that said fund shall be appropriated
from the Weld County General Fund (unappropriated balance) to be
repaid as per the terms of this Ordinance.
BE IT FURTHER ORDAINED that an emergency exists which re-
quires that this Supplemental Appropriation Ordinance be enacted
forthwith, and therefore, this Ordinance is declared to be an
emergency Ordinance under the provisions of Section 3-14 of the
Weld County Home Rule Charter.
The above and foregoing Resolution was , on motion duly made
and seconded, adopted by the following vote on the 20th day of
July, A.D. , 1977.
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
._ Weld County -Clerk and Recorder
' and Clerk to the Boa d
j Deputy County C erk
•APPR ED AS TO FORM: `
County Attorne
Date Presented: July 20, 1977
Dated: July 20, 1977
Published: ,July 27, 1977 in the Greeley Journal
-2-
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STATE OF COLORADO
{ COUNTY OF WELD ss.
r Ned wsth the CUTk of the Board
of County Commissioners
"P211977
VIII COUNTY Clr .AND RECORDER
Policy of Title Insurance ay -- - 'z - D "
Issued by
Transamerica Title Insurance Company
SUBJECT TO THE SCHEDULE OF EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS CON-
TAINED IN SCHEDULE B AND THE PROVISIONS OF THE CONDITIONS AND STIPULATIONS
HEREOF, TRANSAMERICA TITLE INSURANCE COMPANY, a California corporation, herein called
the Company,insures, as of Date of Policy shown in Schedule A, against loss or damage, not exceeding the
amount of insurance stated in Schedule A, and costs, attorneys'fees and expenses which the Company may
become obligated to pay hereunder, sustained or incurred by the insured by reason of:
I
1. Title to the estate or interest described in Schedule A being vested otherwise than as stated therein;
I '
II 2. Any defect in or lien or encumbrance on such title;
3. Lack of a right of access to and from the land; or
4. Unmarketability of such title. I
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In Witness Whereof, Transamerica Title Insurance Company has caused this policy to be signed and sealed
I
by its duly authorized officers as of Date of Policy shown in Schedule A. i
d
Transamerica Title Insurance Company
Gs '"�/�/
By ���r�a^ / President I
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By Secretary
.
FORM NO. C-5000-1
FOR USE WITH COLORADO REGION AMERICAN LAND TITLE kSSOCIATION OWNER'S POLICY-FORM 0- 1970 (AMENDED 10-17-70)
SCHEDULE A
Amount of Insurance$ 42 , 000. 00 Policy No. 8000472
Date of Policy August 25 , 1977 Sheet 1 of 3_
8 : 00 A.M.
1. Name of Insured:
WELD COUNTY, a body corporate and politic
of the State of Colorado.
2. The estate or interest in the land described herein and which is covered by this policy is:
IN FEE SIMPLE
3. The estate or interest referred to herein is at Date of Policy vested in:
WELD COUNTY, " a body corporate and politic
of the State of Colorado.
FORM NO. C-6000-2
FOR USE WITH COLORADO REGION AMERICAN LAND TITLE ASSOCi/.TION LOAN POLICY 1970 (AMENDED 10-17-70)
FOR USE WITH COLORADO REGION AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY-FORM B-1970 (AMENDED 10-17-70)
SCHEDULE A—Continued
The land referred to in this policy is situated in the State of Colorado, County of
Weld , and is described as follows:
Lots 5 and 6 , in Block 5 ,
ARLINGTON HEIGHTS, in the
CITY OF GREELEY
FORM NO. C-6000-3
FOR USE WITH COLORADO REGION AMERICAN LAND TITLE ASSOCIATION LOAN POLICY 1970 (AMENDED 10-17-70)
FOR USE WITH COLORADO REGION AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY-FORM 0-1970 (AMENDED 10-17-70)
SCHEDULE B
This Policy does not insure against loss or damage by reason of the following:
1. Rights or claims of parties in possession not shown by the public records.
2. Easements, or claims of easements,not shown by the public records.
3. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, and any facts which a cor-
rect survey and inspection of the premises would disclose and which are not shown by the public records.
4. Any lien,or right to a lien,for services,labor,or material heretofore or hereafter furnished,imposed by
law and not shown by the public records.
5. Taxes due and payable; and any tax, special assessments, charge or-lien imposed for water or sewer
service, or for any other special taxing district. The 1976 General taxes paid ,
according to tax certificate,- dated July 28 , 1977 ,
6. Restrictions , which did contain a forfeiture or reverter clause ,
but which forfeiture or reverter clause has been released by Quit
Claim Deed of record, as contained in Deed from the Colorado Mortgage
and Investment Company, Limited, recorded May 7 , 1906 in Book 234 at
Page 320 , weld County Records, as follows : " . . . that intoxicating
liquor shall never be manufactured , sold or given away as a beverage
in any place of public resort on said premises , also that no dwelling
house of less than $2 , 000. 00 shall be constructed on said lots; also
that no part of any building on said lots shall be nearer to the
boundary thereof on any street or avenue than 35 feet. "
SCHEDULE OF EXCLUSIONS FROM COVERAGE
The following matters are expressly excluded from the coverage of this policy:
1. Any law, ordinance or governmental regulation (including but not limited to building and zoning ordinances) re-
stricting or regulating or prohibiting the occupancy, use or enjoyment of the land, or regulating the character,
dimensions or location of any improvement now or hereafter erected on the land, or prohibiting a separation in
ownership or a reduction in the dimensions or area of the land, or the effect of any violation of any such law, ordi-
nance or governmental regulation.
2. Rights of eminent domain or governmental rights of police power unless notice of the exercise of such rights appears
in the public records at Date of Policy.
3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed or agreed to by the
insured claimant; (b) not known to the Company and not shown by the public records but known to the insured
claimant either at Date of Policy or at the date such claimant acquired an estate or interest insured by this policy
and not disclosed in writing by the insured claimant to the Company prior to the date such insured claimant became
an insured hereunder; (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subse-
quent to Date of Policy; or (e) resulting in loss or damage which would not have been sustained if the insured claim-
ant had paid value for the estate or interest insured by this policy.
CONDITIONS AND STIPULATIONS
1. DEFINITION OF TERMS (b) The insured shall notify the Company promptly in
The following terms when used in this policy mean: writing (i) in case any action or proceeding is begun or de-
fense is interposed as set forth in (a) above, (ii) in case knowl-
(a) "insured": the insured named in Schedule A, and, edge shall come to an insured hereunder of any claim of title
subject to any rights or defenses the Company may have or interest which is adverse to the title to the estate or interest,
against the named insured, those who succeed to the interest as insured, and which might cause loss or damage for which
of such insured by operation of law as distinguished from the Company may be liable by virtue of this policy, or (iii) if
purchase including, but not limited to, heirs, distributees, title to the estate or interest, as insured, is rejected as un-
devisees, survivors, personal representatives, next of kin, or marketable. If such prompt notice shall not be given to the
corporate or fiduciary successors. Company, then as to such insured all liability of the Company
(b) "insured claimant": an insured claiming loss or dam- shall cease and terminate in regard to the matter or matters
age hereunder. for which such prompt notice is required; provided, however,
c "knowledge": actual knowledge, not constructive that failure to notify shall in no case prejudice the rights of any
(c) g g such insured under this policy unless the Company shall be
knowledge or notice which may be imputed to an insured by prejudiced by such failure and then only to the extent of
reason of any public records. such prejudice.
(d) "land": the land described, specifically or by reference (c) The Company shall have the right at its own cost to
in Schedule A, and improvements affixed thereto which by law institute and without undue delay prosecute any action or
constitute real property; provided, however, the term "land" proceeding or to do any other act which in its opinion may be
does not include any property beyond the lines of the area
specifically described or referred to in Schedule A, nor any necessary or desirable to establish the title to the estate or
right, title, interest, estate or easement in abutting streets, interest as insured, and the Company may take any appro-
roads, avenues, alleys, lanes, ways or waterways, but nothing priate action under the terms of this policy, whether or not
it shall be liable thereunder, and shall not thereby concede
herein shall modify or limit the extent to which a right of
access to and from the land is insured by this policy. liability or waive any provision of this policy.
(e) "mortgage": mortgage, deed of trust, trust deed, or (d) Whenever the Company shall have brought any action
other security instrument. or interposed a defense as required or permitted by the pro-
(f) "public records": those records which by law impart visions of this policy, the Company may pursue any such
constructive notice of matters relating to said land. litigation to final determination by a court of competent juris-
diction and expressly reserves the right, in its sole discretion,
to appeal from any adverse judgment or order.
2. CONTINUATION OF INSURANCE AFTER CONVEYANCE OF
TITLE (e) In all cases where this policy permits or requires the
Company to prosecute or provide for the defense of any action
The coverage of this policy shall continue in force as of or proceeding, the insured hereunder shall secure to the
Date of Policy in favor of an insured so long as such insured Company the right to so prosecute or provide defense in such
retains an estate or interest in the land, or holds an indebted- action or proceeding, and all appeals therein, and permit the
ness secured by a purchase money mortgage given by a pur- Company to use, at its option, the name of such insured for
chaser from such insured, or so long as such insured shall such purpose. Whenever requested by the Company, such
have liability by reason of covenants of warranty made by insured shall give the Company all reasonable aid in any such
such insured in any transfer or conveyance of such estate or action or proceeding,in effecting settlement,securing evidence,
interest; provided, however, this policy shall not continue in obtaining witnesses, or prosecuting or defending such action
force in favor of any purchaser from such insured of either or proceeding, and the Company shall reimburse such insured
said estate or interest or the indebtedness secured by a pur- for any expense so incurred.
chase money mortgage given to such insured.
4. NOTICE OF LOSS—LIMITATION OF ACTION
3. DEFENSE AND PROSECUTION OF ACTIONS—NOTICE OF In addition to the notices required under paragraph 3(b)
CLAIM TO BE GIVEN BY AN INSURED CLAIMANT of these Conditions and Stipulations, a statement in writing
(a) The Company, at its own cost and without undue of any loss or damage for which it is claimed the Company
delay, shall provide for the defense of an insured in all litiga- is liable under this policy shall be furnished to the Company
tion consisting of actions or proceedings commenced against within 90 days after such loss or damage shall have been de-
such insured, or a defense interposed against an insured in an termined and no right of action shall accrue to an insured
action to enforce a contract for a sale of the estate or interest claimant until 30 days after such statement shall have been
in said land. to the extent that such litigation is founded upon furnished. Failure to furnish such statement of loss or damage
an alleged defect, lien, encumbrance, or other matter insured shall terminate any liability of the Company under this policy
against by this policy. as to such loss or damage.
Continued on Front of Back Cover
•
Continued from Back of Front Cover
5. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS interest covered by this policy and the amount so paid shall
be deemed a payment under this policy to said insured owner.
The Company shall have the option to pay or otherwise
settle for or in the name of an insured claimant any claim in- 10. APPORTIONMENT
sured against or to terminate all liability and obligations of
the Company hereunder by paying or tendering payment of If the land described in Schedule A consists of two or more
the amount of insurance under this policy together with any parcels which are not used as a single site, and a loss is estab-
costs, attorneys' fees and expenses incurred up to the time lished affecting one or more of said parcels but not all, the
of such payment or tender of payment, by the insured claim- loss shall be computed and settled on a pro rata basis as if
ant and authorized by the Company. the amount of insurance under this policy was divided pro
rata as to the value on Date of Policy of each separate parcel
6. DETERMINATION AND PAYMENT OF LOSS to the whole, exclusive of any improvements made subsequent
to Date of Policy, unless a liability or value has otherwise
(a) The liability of the Company under this policy shall been agreed upon as to each such parcel by the Company and
in no case exceed the least of: the insured at the time of the issuance of this policy and
(i) the actual loss of the insured claimant; or shown by an express statement herein or by an endorsement
(ii) the amount of insurance in Schedule A. attached hereto.
(b) The Company will pay, in addition to any loss insured 11. SUBROGATION UPON PAYMENT OR SETTLEMENT
against by this policy, all costs imposed upon an insured in liti-
gation carried on by the Company for such insured, and all Whenever the Company shall have settled a claim under
costs, attorneys' fees and expenses in litigation carried on by this policy, all right of subrogation shall vest in the Company
such insured with the written authorization of the Company. unaffected by any act of the insured claimant. The Company
shall be subrogated to and be entitled to all rights and reme-
(c) When liability has been definitely fixed in accordance dies which such insured claimant would have had against any
with the conditions of this policy, the loss or damage shall be
payable within 30 days thereafter. person or property in respect to such claim had this policy not
been issued, and if requested by the Company, such insured
claimant shall transfer to the Company all rights and remedies
7. LIMITATION OF LIABILITY against any person or property necessary in order to perfect
such right of subrogation and shall permit the Company to
No claim shall arise or be maintained under this policy
use the name of such insured claimant in any transaction or
(a) if the Company, after having received notice of an allegedr
defect, lien or encumbrance insured against hereunder, by dolites not on involvingloss
such u insured o remedies. If the payment
litigation or otherwise, removes such defect, lien or encum- shall hes cover the to to such such hts claimant,e the Company
pro-
brance or establishes the title, as insured, within a reasonable be which said to rights and remedies in the time after receipt of such notice; (b) in the event of litigation portion said payment bears to the amount of said loss.
until there has been a final determination by a court of corn- If loss should result from any act of such insured claimant,
petent jurisdiction, and disposition of all appeals therefrom, such act shall bell not void ie this policy, but the partCo of any, in that
adverse to the title. as insured, as provided in paragraph 3 event, against rehquired to which pac only that the losses
if
hereof; or (c) for liability voluntarily assumed by an insured insured to he Company
by shall exceed impairment of the
in settling any claim or suit without prior written consent of any, lost to the Company reason of the of the
right of subrogation.
the Company.
8. REDUCTION OF LIABILITY 12. LIABILITY LIMITED TO THIS POLICY
This instrument together with all endorsements and other
All payments under this policy, except payments made for
instruments, if any, attached hereto by the Company is the
costs, attorneys' fees and expenses, shall reduce the amount
of the insurance pro tanto. No payment shall be made without entire policy and contract between the insured and the
producing this policy for endorsement of such payment unless Company.
the policy be lost or destroyed, in which case proof of such Any claim of loss or damage, whether or not based on
loss or destruction shall be furnished to the satisfaction of negligence, and which arises out of the status of the title to
the Company, the estate or interest covered hereby or any action asserting
such claim, shall be restricted to the provisions and conditions
9. LIABILITY NONCUMULATIVE and stipulations of this policy.
No amendment of or endorsement to this policy can be
It is expressly understood that the amount of insurance made except by writing endorsed hereon or attached hereto
under this policy shall be reduced by any amount the Com- signed by either the President, a Vice President, the Secretary.
pany may pay under policy insuring either (a) a mortgage an Assistant Secretary, or validating officer or authorized
shown or referred to in Schedule B hereof which is a lien on signatory of the Company.
the estate or interest covered by this policy, or (b) a mortgage
hereafter executed by an insured which is a charge or lien on 13. NOTICES, WHERE SENT
the estate or interest described or referred to in Schedule A,
and the amount so paid shall be deemed a payment under this All notices required to be given the Company and any
policy. The Company shall have the option to apply to the pay- statement in writing required to be furnished the Company
ment of any such mortgages any amount that otherwise would shall be addressed to Transamerica Title Insurance Company,
be payable hereunder to the insured owner of the estate or P. O. Box 605, Denver, Colorado 80201.
•
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`' `°e DIVISION OF INSURANCE
DEPARTMENT OF REGULATORY AGENCIES
106 STATE OFFICE BUILDING • 201 E.COLFAX AVE.
DENVER.COLORADO 80203
STATE OF COLORADO
RICHARD D. LAMM
GOVT NoR
J.
COUIMasRDEBARNES.C.L.V. May 1, 1977
ROBERT L.BROWN
DE.",.CORRlSSIO ER
Dear Real Estate Purchaser:
Following this letter you will find a brief explanation of your title
Insurance commitment and policy.
Title insurance companies are regulated by this Division, as are
other types of insurance companies. This Division makes certain that com-
panies issuing title insurance commitments and title insurance policies are
financially sound, and that they operate in accordance with statutes and
regulations.
We also have a great interest in making certain that you, as the
consumer, understand the purpose of title insurance and that you understand
your rights under your insurance policy.
In the event you are dissatisfied with responses given to your ques-
tions or problems by your title insurance company, you are encouraged to
send your questions concerning title insurance or any complaints that you
may have against your title insurer to this office. We are on hand to make
certain that all your rights and remedies, both under your policy and under
law, are available to you at all times.
Sincerely,doss,est
CHARD BARNES, C.L.U.
Commissioner of Insurance
JRB:bl
As a purchaser of a home or other real estate you may receive a"Commitment for Title Insurance"and a"Policy of Title Insurance:'Both of
these documents, like many others in connection with your purchase,are contracts creating legal rights which you should read carefully and
which you may wish to have examined and explained by a lawyer or other adviser.While the following description of these documents cannot
change the precise terms of these documents, it is hoped that this will help you to understand their purpose and effect and answer some of
your questions about them.
QUESTION:"WHAT IS TITLE INSURANCE?"
ANSWER: Basically, it is a contract with the title insurance company in which the company agrees to defend and indemnify you against
losses which you may suffer because of unreported defects in the title to your property as of the date of the contract. It is not casualty
insurance and, therefore, does not protect you against acts of theft or damage to your home by fire, storm and the like. Essentially, the
insurance insures that you have title to the property subject only to certain exceptions and exclusions listed in the Policy of Title Insurance.
Title insurance recognizes the possibility of loss, but transfers the risk of loss from you as property owner to the company issuing the policy
For this reason title insurance companies are required to maintain reserves to cover losses.
If you are financing your purchase,your lender will ordinarily require that you obtain a separate Lender's Policy to insure that your property
will in fact serve as security for its loan.
QUESTION:"WHAT DOES THE PREMIUM PAY FOR?"
ANSWER:The one time, non-recurring premium pays for several things. It helps to pay for the cost of collecting,maintaining,searching
and examining real estate records and certain other public records which relate to your property so that the title insurance company can
determine the insurability of your title. For example, the title insurance company will determine whether the public records show that your
seller really owns the property, what mortgages or liens(a recorded legal claim) may exist, whether there are restrictive covenants on your
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property or easements which allow persons to cross your property or to place utilities across your property.The premium also serves to finance
certain legal costs which may arise if your title is challenged.Additionally, payment of the premium requires the title insurance company to
indemnify you for any losses you suffer as a result of the title company's failure to fulfill its contractual obligations under your title policy
QUESTION:"WHAT IS A COMMITMENT FOR TITLE INSURANCE?"
ANSWER: A Commitment for Title Insurance is a standardized preliminary document authorized by the Commissioner of Insurance
indicating that a title insurance company will issue a title insurance policy to you after certain steps have been taken, such as the payment
of an outstanding mortgage or lien and the issuance of a deed to you. These steps are set out in the commitment as "requirements" in
Schedule B—Section 1. In Schedule B—Section 2"Exceptions"the commitment also summarizes certain existing limitations on the use of
your property,the defects in your title and liens against your property.Your policy will not protect you against these matters,You will note that
some of these limitations and defects may still exist even after all of the requirements of the commitment have been met.These other matters
are usually such things as restrictive covenants or easements for utilities and the like.You should carefully read both the"requirements"and
the exceptions to title stated in the commitment so that you may raise objections if there are matters affecting the title to which you did not
agree when you signed the contract to purchase your property.
Some of the"exceptions"are standard and will not normally be covered by your title policy The first standard exception is any claim by
parties in possession of the property which is not shown by the public records.This means,for example,that someone may have been living
on the property for a long period of time and may claim that they own the property, even though they do not have a recorded deed;or may
claim that they are somehow otherwise entitled to be on the property.The title insurance company could not learn of such a claim by examining
the public real estate records.You should inspect the property to make sure that anyone living there will respect your ownership.
Exception 2 of Schedule B similarly may mean that someone has used a portion of the property long enough to claim an easement,even
though there is no instrument of record giving that person the authority to do so.
Exception 3 of the standard commitment in essence says that the title insurance policy will not insure against problems concerning
the exact boundary lines of the property you are purchasing, which means that you should make certain that there are no fences or other
encroachments on your property, particularly if you do not have a survey.Again, a title insurance company cannot determine whether such
problems exist on your property because employees of the title insurance company will not inspect the property unless they are specially
requested and paid to do so.
Exception 4 excludes liens which may be filed against your property by someone who may have done work on the property and who
has not been paid.The title insurance company does not have any way of determining whether such claims may exist in the absence of some
recorded document.You may wish to verify that no such unsatisfied claims exist.
The fifth standard exception is for matters which may arise following the issuance of the commitment and before you complete your
purchase. Many companies also exclude taxes and special assessments which may be imposed against your property which are not recorded
in the public records,or the amount of which has not yet been determined.
If you are purchasing a single family residence, you may wish to check to see if you are entitled to obtain endorsement Form No. 130
which removes several of the standard exceptions and will give you insurance for some of those matters.
You will see that the commitment shows the amount of title insurance to be issued, together with the amount of the premium charge.
Your seller should check with his broker and with the title insurance company issuing the commitment to make certain that he has paid the
lowest premium to which he is entitled. For instance, if there has been a title insurance policy issued to your seller within the last two years,
he may be entitled to receive some credit for the prior premium against the amount of premium which he will now pay.
QUESTION:"WHAT IS THE POLICY OF TITLE INSURANCE?"
ANSWER:The Policy of Title Insurance is a document which will be issued to you after your purchase transaction is concluded. It,too, is
a standardized document,the printed portions of which have been approved by the Commissioner of Insurance.
Schedule A of your policy will set forth,among other matters,the amount of insurance coverage,your name as the insured,your interest
in the property,such as actual ownership or a leasehold interest,and the legal description of the property
Your title insurance policy, as any other insurance policy, has exceptions from coverage.These will be set forth in Schedule B of your
policy and in the Schedule of Exclusions from Coverage.Matters which may limit coverage will be set forth in the"Conditions and Stipulations"
section of the policy.
In Schedule B of the policy,you will find those items against which the title insurance company does not,or cannot,insure.Many of these
will be the same as the exceptions set out in Schedule B of the Title Commitment.
The Schedule of Exclusions from Coverage excludes matters such as zoning ordinances which regulate how the property may be used,
rights which may be possessed by a governmental body and which might be exercised against the property,and any defects of which you may
be aware but have not informed the title insurance company. You may desire to investigate the status of these matters before you complete
your purchase. Also excluded are defects or encumbrances which may be placed upon the property subsequent to the date of the policy.
You should remember that a title policy is not a promise of indemnity against some defect or claim against your title which may be created
in the future. It does protect you against loss or damage existing from defects in the title to real property existing prior to and as of the date
of the policy even though they may not be discovered until some future date.
The language concerning Conditions and Stipulations under which the title insurance company issues its policy contains an explanation
of the terms of the policy, and also deals with how you should notify the title insurance company in the event you may believe that you may
have a claim under the policy. If someone should assert that they have a right to use your property or that they own part of it,and you cannot
find that right set forth in your policy as an exception or an exclusion,you must notify the title insurance company in writing of the situation.
The address for this notification will normally appear in your policy. Prompt notification will enable you and the company to deal with the
matter or problem that you raise,if it is covered by the policy,so that the dispute may be resolved in as timelya manner as possible.
You should know that if the problem is covered by your title insurance policy, a title insurance company must usually bear the costs of
litigation, either to defend your title in the event of an adverse claim against it, or sometimes to bring affirmative legal action to clear up the
problem. In so doing,the title insurance company retains the right of settling the claim or pursuing the matter through the courts,if it believes
that the rights asserted by a third party against your property are not legally justified. If the title insurance company takes the position that the
matter which you raise is not covered by the terms of the title insurance policy, it must so notify you as soon as reasonably possible after
you present your claim.
QUESTION: "WHAT IF I STILL HAVE FURTHER QUESTIONS ABOUT THE COMMITMENT FOR TITLE INSURANCE OR POLICY OF
TITLE INSURANCE?"
ANSWER: You should certainly ask them of your attorney,the seller, the lender or the title insurance company. If you do not receive a
satisfactory answer to your questions,you may contact the office of the Colorado Commissioner of Insurance,J.Richard Barnes,Commissioner,
Department of Regulatory Agencies,106 State Office Building,Denver,Colorado 80203.
Form No.C-14213
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