| A | B |
|---|
| covenant | agreement btw 2 parties |
| Title | evidence of person's right or extent in real estate |
| Covenant example | covenant of warranty in a deed - assures the grantee holds the interest conveyed |
| Covenant broken | subject to legal action for breach of covenant |
| Conditions | may affect a person's right to use, possess or enjoy land (could relate to future event) |
| Conditions example | provision can take away/divest person's right or interest upon the occurrence of a certain event |
| Restriction-provision in deed or other instrument | prohibits or limits certain uses, occupation or imporvements of land (can be covenent OR condition |
| Restrictions public | ex. govt. zoning ordinances |
| Restrictions private | ex. created and enforced by owners of land |
| Private restrictions affecting title | "covenants running with the land" |
| A restriction affects the right to use of possess land until | terminated by all parties with a right to enforce the restriction |
| Exceptions | (excepted from coverage uncer insuring provisions in title policy |
| Exceptions - Interests or encumberances affecting the title or estate being insured | shown on Schedule B |
| Examples of Exceptions | liens, restrictions, easements or other interests affecting a person's title to property |
| Requirement definition | provision in title policy -imposes obligation to perform some act before a policy will be issued to an insured party |
| Requirement may include | recording of instruments evidencing creation or termination of rights or interest in land |
| Requirement examples | recording deed or mortgage, recording discharge of lien or payment of real estate taxes |
| Endorsement | an addendum or amendment which changes terms or coverage in a title insurance commitment or policy |
| Endorsement example | addendum or amendment which changes coverage contained in title policy or commitment ex. add coverage that would otherwise be excluded in title policy and becomes part of title policy subject to provitions, conditions and stipulations of title policy |
| Endorsement procedure | endorsements & premium charges must be filed & approved by NJ Insurance Bureau - once approved it may not be changed or altered. |
| Premium charges for Endorsements | determined by rates filed with Insurance Bureau by title insurance companies |
