HomeMy WebLinkAboutWarranty Deed 07- Insurance, and Parcel 1 and Parcel 2 of Certificate of Survey No. 2457 from The Trust for Public Land and Security Title Company
See
June 5, 2007
The City of Bozeman
814 N. Bozeman Avenue
Bozeman, MT 59715
Re: G070494
Parcell and Parcel 2 of Certificate of Survey No. 2457
Too often in the rush of business life we forget to say "Thank You." As a valued client, we want
you to know that your business and your confidence in us is appreciated. So... Thank you.
In connection with your recent transaction, we enclose the following:
..Owner's Title Policy
..Deed
.. Declaration of Protective Covenants
Please review your policy carefully, and let us know if you have any questions. An ongoing file
has been established on your property. In the event you should sell or mortgage it, have your
realtor or lender give us a call and we will promptly handle both the title insurance and closing
for you.
Again, thank you for allowing us to be of service.
Ene\.
Serving Gallatin and Madison Counties
Main Office
600 South 19th Ave.
Bozeman, Montana 59718
Fax: 406.522.5501
Branch
2002 North 22nd Ave., Ste. 2
Bozeman, Montana 59718
Fax: 406.522.5566
Branch
1982 Stadium Drive, Ste. 1
Bozeman, Montana 59715
Fax: 406.522.5577
P.O. Box 6550, Bozeman, MT 59771-6550 · Phone 406.522.5500 · www.seetitle.eom
Form No. 1402.06
AL T A Owner's Policy
(06/17/06)
SCHEDULE A
File No.: G070494
Policy No.: 1002024-0006187
Amount of Insurance: $190,000.00
Premium: $580.50
Reissue Rate
Date of Policy: 5/22/2007 at 3:27PM
l. Name of Insured:
City of Bozeman, A Political Subdivision of the State of Montana
2. The estate or interest in the land which is covered by this policy is:
Fee Simple
3. Title to the estate or interest in the land is vested in:
City of Bozeman, A Political Subdivision of the State of Montana
4. The land referred to in this policy is described as follows:
Parcell and Parcel 2 of Certificate of Survey No. 2457, a tract of land located in the
SEl/4 of Section 7, Township 2 South, Range 6 East, P.M.M., City of Bozeman, Gallatin
County, Montana, according to the official plat thereof on file and of record in the office
of the County Clerk and Recorder, Gallatin County, Montana.
~
Form No. 1402.06
ALTA Owner's Policy
(06/17/06)
SCHEDULE B
File No.: G070494
Policy No.: 1002024-0006187
The policy does not insure against loss or damage (and the company will not pay costs,
attorney's fees or expenses) which arise by reason of:
1. Taxes or assessments which are not shown as existing liens by the records of any taxing
authority that levies taxes or assessments on real property or by the public records.
2. Any facts, rights, interests, or claims which are not shown by the public records but
which could be ascertained by an inspection of said land or by making inquiry of person
in possession thereof.
3. Easements, claims of easement or encumbrances which are not shown by the public
records.
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. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts
authorizing the issuance thereof; (c) water rights, claims or title to water whether or not
the matters excepted under (a), (b), or (c) are shown by the public records.
6. Any lien, or right to a lien, for services, labor or material theretofore or hereafter
furnished, imposed by law and not shown by the public records.
Section Two:
1. Any right, title or interest in any minerals, mineral rights or related matters including but not
limited to metals, stone, oil, gas, coal and other hydrocarbons, whether or not shown by the
public records.
2. General and special taxes and assessments for the year 2007 which are a lien but not yet
computed or payable. (2006 and prior years show paid.)
3. County road rights-of-way not recorded and indexed as a conveyance in the office of the
Clerk and Recorder pursuant to Title 70, Chapter 21, M.C.A.
4. Right of Way for ditches, creeks or canals as they may flow over, along and across subject
property, as disclosed by various instruments of record, including but not limited to Bozeman
Creek.
~
5. Easement to the Montana Flour Mills Company, recorded November 20, 1951 in Book 14 of
Miscellaneous, Page 450, records of Gallatin County Montana. Said easement being for the
right to perpetually care for, maintain, repair, replace and remodel a dam and a ditch, and the
right of ingress, egress and regress over and across the West 20 feet of said property.
6. Right of Way Easement to The Montana Power Company for the right to construct, maintain,
operate and remove an electric power line and communication system, as now surveyed and
located over, along and across the SEl/4SEl/4 of Section 7, Township 2 South, Range 6 Ease
in a portion of the abandoned Milwaukee Railroad, together with the right to clear and
remove all timber and brush from the right of way 20 feet on each side of said transmission
line and to cut and remove such trees outside of such right of way which may endanger said
line or lines. Recorded July 25, 1986 in Film 93, Page 287, records of Gallatin County,
Montana.
Deed conveying all existing easements from Northwestern Energy, L.L.c., formerly lrnown
as The Montana Power, L.L.C., successor by merger to the remaining utility business of The
Montana Power Company to Northwestern Corporation, recorded December 4,2002,
Document No. 2089795, records of Gallatin County, Montana.
7. Terms, conditions, restrictions and all other disclosures contained in the Declaration of
Protective Covenants for Open Space Land and Voluntary Conservation Act for the Gallatin
County Regional Park-Gallatin County, Montana, recorded May 22,2007, Document No.
2266919, records of Gallatin County, Montana but deleting any covenant, condition or
restriction indicating a preference, limitation or discrimination based on race, color, religion,
sex, handicap, familial status, or national origin to the extent such covenants, conditions or
restrictions violate 42 USC 3604(c).
END OF EXCEPTIONS
-.
Recording Requested By And
When Recorded Mail To:
Security Title Company
600 South 19th Avenue
Bozeman, MT 59718
(406) 522-5500
tZ'.5Tt-- C,D'ioc./9Lf
11111111111111111111111111111 1111111111 1111111111111111 ~~~~~f~~; ~p
ChadQ1kl'li.Us.d,ail.a.Un...Co...MTD.EED 21.00
I~rotp
THE GRANTOR, THE TRUST FOR PUBLIC LAND, a California nonprofit public
benefit corporation, whose address is 111 South Grand Avenue, Suite 204, Bozeman, Montana
59715, qualified to do business and doing business in the State of Montana with its principal
place of business located at 1011 Western Avenue, Suite 605, Seattle, Washington 98104, herein
referred to as "Grantor," for and in consideration ofTen and 00/100 Dollars ($10.00), and other
good and valuable consideration in hand paid, grants, conveys and warrants to THE CITY OF
BOZEMAN, a political subdivision of the State of Montana whose principal place of business is
814 North Bozeman Avenue, Bozeman, Montana, 59771, herein referred to as "Grantee," its
successors and assigns the following described real estate, situated in the County of Gallatin,
State of Montana (the "Property"):
WARRANTY DEED
Parcell and Parcel 2 of Certificate of Survey No. 2457, a tract ofland located in the
SEl/4 of Section 7, Township 2 South, Range 6 East, P.M.M., City of Bozeman,
Gallatin County, Montana, according to the official plat thereof on file and of
record in the office of the County Clerk and Recorder, Gallatin County, Montana.
AND ALSO TOGETHER WITH all and singular the rights, privileges, improvements,
tenements, hereditaments and appurtenances thereto belonging or in anywise appertaining.
The Property is subject to an easement in the public for any public roads heretofore laid
out or established and now existing over, along or across any portion of the real estate, and to all
additional easements, reservations, restrictions, encumbrances and water rights, if any, apparent
or of record; and further
SUBJECT TO county road rights-of-way the existence of which is dependent in whole
or in part upon writings which have not been recorded and indexed as conveyances in the office
of the clerk and recorder pursuant to Title 70, Chapter 21 MCA.
1
"
11111111111111111111111111111111111111111111111 11111111 ~~~~~f~~, ~p
Char lot te,..MHl s-Galla.l ir:L..!&.J'lJ.DEED 21.01/)u.
SUBJECT ALSO TO rights of way for ditches, creeks or canals as they may flow over,
along and across the subject property, including but not limited to Bozeman Creek.
SUBJECT ALSO TO an easement to Montana Flour Mills Company to maintain, repair
and replace a dam and ditch, and the right of ingress, egress and regress over and across the West
20 feet of the property recorded November 20, 1951 in Book 14 of Miscellaneous, Page 450,
records of Gallatin County, Montana.
SUBJECT ALSO TO a Right of Way Easement to the Montana Power Company for the
right to construct, maintain operate and remove an electric power line and communication
system, as now surveyed and located, over, along and across a portion of the abandoned
Milwaukee Railroad, together with the right to clear and remove all timber and brush from the
right of way 20 feet on each side of the transmission line and to cut and remove such trees
outside of such right of way which may endanger said line or lines, recorded July 25, 1986 in
Film 93, Page 287, records of Gallatin County.
And the said Grantor hereby covenants that it will forever WARRANT and DEFEND all
right, title and interest in and to the Property, and the quiet and peaceable possession thereof,
unto the said Grantee, its successors and assigns, against the acts and deeds of said Grantor, and
all and every person and persons whomsoever lawfully claiming or to claim the same.
IN WITNESS WHEREOF, said limited partnership has caused this instrument to be
executed by its proper officers and its seal to be hereunto affixed this 30th day of April, 2007.
THE TRUST FOR PUBLIC LAND
~~e:~~t~
Title: Regional Counsel & Assistant Secretary
2
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111111111111 11111 ~llllllllltllllllllll 1111111111111111 ~~~~~?~~, ~p
Char.l.otte MHls=-G.dl.atin Co MTDEED 21.00
ACKNOWLEDGMENT
ST ATE OF WASHINGTON )
)ss
COUNTY OF KING )
On this 30th day of April, 2007, before me personally appeared Thomas E. Tyner,
Regional Counsel & Assistant Secretary of The Trust for Public Land, the corporation that
executed the within and foregoing instrument, and acknowledged the said instrument to be the
free and voluntary act and deed of said corporation for the uses and purposes therein mentioned,
and on oath stated that he was authorized to execute said instrument on behalf of the corporation.
IN WITNESS WHEREOF, I have hereunto set my hand on the day and year last above
written.
DANIEL K. WIlSON
B1'ATE OF WASHtNGTON
NOTARY - . - PUBLIC
CQMMlSSlON EXPIRES 02-04-10
~:~-I:~I-/~
Notary Public in and for the
State of Washington
Residing at Seattle
My Commission Expires:
Printed Name: Daniel Wilson
3
rights and remedies,
If a payment on account of a claim does not fu Ily cover the loss olthe Insured
Claimant, the Company shall defer the exercise of its right to recover unti I after the
I nsu red Claimant shall have recovered its loss.
(b) The Company's rig ht of subrogati on includes the rights of the I nsured to
indemnities, guaranties, other policies of insurance, or bonds, notwithstanding any
terms or cond ilions contai ned in those instruments that add ress subrogati on rights.
14. ARBITRATION
Either the Company or the I nsured may demand that the claim or controversy shall
be submitted to arbitration pursuant to the Title I nsu ranee Arbitration Rules of the American
Land Title Association ("Rules"), Except as provi ded in the Rules, there shalt be no joinder
or canso I idation with claims or controversies of other persons, Arbitrab Ie matters may
include, but are not limited 10, any controversy or claim between the Company and the
Insured arising out of or relating to this pol icy, any service in con nection with its issuance
or the breach of a policy provision, or to any other controversy or claim arising out of the
transaction givi ng rise to th is policy. All arbitrable matters when the Amount of Insurance
is $2,000,000 or I ess shall be arbitrated at the opti on of either the Company or the Insured,
All arbitrable mailers when the Amount of Insurance is in excess of $2,000,000 shall be
arb it rated only when agreed to by both the Company and the Insured, Arbitration pursuant
to this policy and under the Rules shall be binding upon the parties. Judgment upon the
award rendered by the Arbitrator(s) may be entered in any court of competenl ju ri sdiction.
15. LIABILITY LIMITED TO THIS POLICY; POLICY ENTIRE CONTRACT
(a) Th is pol icy together with all endorsements, if any, attached 10 it by lhe
Company is the enti re pol icy and contract between the I nsured and the Company. In
inlerpreli ng any provisi on of this po I icy, th is pOlicy shall be construed as a whole,
(b) Any claim 01 loss or damage lhat arises out of the status ot the Title or by any
acti on asserting such claim shall be restricted to th is pol icy.
(c) Any amendment of or endorsement to this policy must be in writing and
authenticated by an authorized person, or expressly incorporated by Schedu Ie A of
this policy.
1; ;.. ME" Il' I
~., ~..
~ 'fo
.
OWNER'S POLICY OF TITLE INSURANCE
(d) Each endorsement to th is pol icy issued at any time is made a part of this pOlicy
and is subject to all of its terms and provisi ons. Except as the endorsement expressly
stales, it does not (i) mod ify any of the terms and provisions of the pol icy, (i i) mod ify
any prior endorsement, (ii i) extend the Date of Policy, or (iv) increase the Amou<lt of
Insurance.
16. SEVERABILITY
In the event any provisi on of th is pol icy, in whole or in part, is held i nval id or
unenforceable under appl icable law, the policy shall be deemed not to include that
provision or such part held to be i nval id, but all other provisions shall remain in full force
an d eftect.
Form No. 1402,06
ALTA Owner's Pol icy (6-17-06)
11OG302P020700
17. CHOICE OF LAW; FORUM
(a) Choice of Law: The Insured acknowledges the Company has underwritten the
risks covered by lhis pol icy and determ i ned the premi um charged therefor in rei iance
upon the law affecting interests in real property and appl icable to the interpretation,
rights, remed ies, or enforcement of pol icies of title i nsu rance of lhe ju risdiction
where the Land is located.
Therefore, the court or an arbitrator shall apply the law of the jurisdiction where the
Land is located to determine the val idity of claims against the Title that are adverse
to the I nsu red and to interpret and enforce the terms of th is pol icy. In neither case
shall the cou rt or arbitrator apply its confl icts of law principles to determ ine the
applicab Ie law,
(b) Choice of Forum: Any I itigati on or other proceeding brought by the Insured
agai nst the Company must be filed only in a state or federal cou rt withi n the United
States of America or its territories havi ng appropriale jurisd iction,
ISSUED BY
First American TItle Insurance Company
Any notice of claim and any other notice or statement in writi ng required to be given to the Compa ny under this policy must be given to the
Company at the address shown in Section 18 of the Conditions.
COVERED RISKS
SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS
FROM COVERAGE CONTAINED IN SCHEDULE B AND THE CONDITIONS,
FIRST AMERICAN TITLE INSURANCE COMPANY, a Calilomia corporation
(the "Company") insures, as 01 Date of Pol icy and, to the extent stated in
Covered Risks 9 and 10, after Date of Policy, agai nstloss or damage, not
exceed i n g t he Am ou nt of Insurance, su sta i ne d or i ncu r red by the Ins u red
by reason of:
1. Title being vested other than as slated in Schedule A.
2. Any defect in or lien or encumbrance on the Title. This Covered Risk
includes but is not limiled to insurance againslloss from
(a) A defecl in the Title caused by
(i) forgery, traud, undue infl uence, du ress, incompelency,
incapacity, or impersonation;
(ii) fai I ure of any person or Entity to have authorized a transfer
or co nveyan ce;
(ii i) a document affecting Title not properly created, executed,
witnessed, sealed, acknowledged, notarized, or delivered;
(iv) fai lure to perform those acts necessary to create a
document by electronic means authorized by law;
(v) a document executed under a falsified, exp ired, 0 r
otherwise i nval id power of attorney;
(vi) a document not properly filed, recorded, or indexed in the
Publ ic Records includi ng failure to perform those acts by
eleclronic means authorized by law; or
(vii) a defective jud icial or admin istrative proceed i ng,
(b) The lien of real estate taxes or assessments imposed on the Title
by a governmental aulhority due or payable, but unpaid,
(c) Any encroachment, encumbrance, violation, variation, or adverse
circumstance affecting the Title thai would be disclosed by an
accurate and complete land survey of the Land, The term
"encroachment" includes encroachments of existing
improvements located on the Land onto adjoining land, and
encroachments onto lhe Land of existi ng improvements located
on adjoini ng land.
3. Unmarketable Title,
4. No righl of access to and from the Land,
5. The violation or enforcement 01 any law, ord i nance, permit or
governmental regulation (i ncluding those relati ng to building and
zoning) restricting, regulating, prohi biting, or relati ng to
(a) the occupancy, use, or enjoyment of the Land;
(b) the character, dimensions, or location of any improvement erecled
on the Land;
(c) lhe subdivision of land: or
( d) envi ronmenta I p rotecti 0 n
if a notice, describing any part of the Land, is recorded in the Publ ic
Records setting forth the violation or intention to enforce, but only to the
extent ot the violation or enforcement referred to in that notice,
6. An e nfo rcement act i on based on the exerc i se of agave rn m en ta I po lice
18. NOTtCES, WHERE SENT
Any notice of claim and any other notice or slatement in writing required to be given
to the Company under th is pol icy must be given to the Company al1 Fi rst American Way,
Santa Ana, CA 92707, Attn: Claims Department.
POLICY OFTITLEINSURANCE
Policy Page 4
1002024-0006187
power not covered by Covered Risk 5 if a notice 01 the enforcement
action, describing any part of the Land, is recorded in the Public
Rec 0 r ds, but on I y to lh e exte nt of the enforcem ent referred to in that
notice,
7. The exercise of lhe rights of emi nent domain if a notice of the exercise,
descri bing any part of the Land, is recorded in the Public Records,
8, Any taki n g by a gove rn mental body that has occu ned an d is bind i ng 0 n
the rights of a purchaser for value without Knowledge,
9, Title being vested other than as stated in Schedule A or being defective
(a) as a result of the avoidance in whole or in part, or from a court
order providing an allernative remedy, of a transfer of all or any
part of the title to or any interest in the Land occurring prior to the
t ran sactio n vesti n g Tit I e as shown in Sch edu Ie A becau se that
prior transfer constituted a fraudulent or preferential transfer under
federal bankruptcy, state insolvency, or similar creditors' rights
laws; or
(b) because the in stru ment 01 tran ster vest i ng Title as shown in
Sched u I e A constitutes a prete re ntia I t ran sfe run de r fe dera I
bankruptcy, state insolvency, or similar creditors' rights laws by
reason of the fai lure of its recording in the Public Records
(i) to be timely, or
(ii)to impart notice of its existence to a purchaser for value or to a
judgment or lien creditor.
10. Any d elect in or I i en or enc u m brance 0 n the Title 0 r oth er malte r
i ncl u d ed in Covered Risks 1 th rou gh 9 that has been created or attach ed
or has been fi led or recorded in the Publ ic Records subsequent to Date
of Po I icy and p ri or 10 t he record i ng of th e deed 0 r othe r in stru ment of
transfer in the Public Records that vests Title as shown in Schedule A,
Th e Com pany wi II a I so pay th e c osls, attorneys' fees, and expen ses
incurred in defe nse of an y matter insured ag a i nst by th i s po I icy, but 0 n Iy to
the extent provided in the Conditions.
FIrSt American TItle Insurance Company
~ jj.A~ PRESIDENT
ATTEST ~~
BY
EXCLUSIONS FROM COVERAGE
The fe II owi ng matters are expressly excl uded trom the coverage of th is po I icy, and the '
Company wili not pay loss or damage, costs, attorneys' fees, or expenses that arise by
reason of:
1 (a)
Any 'aw, ord i nance, permit. or governmental regulation (i nclud i ng those
retati rg to bu i Idi ng and zoning) restricting, regu lating, proh i b ili ng, or relati ng
to
Ii)
Iii)
2.
the occupancy, use, or enjoyment of the Land;
the characler, d imens ions, or I ocati on of any improvement erected on the
Land;
(i i i) the su bd ivision of land; or
(Iv) envi ronmental protection;
or the effect of any violation of these laws, ordi nances, or governmental regulations.
Th is Exci usion 1 (a) does not mod if I' or i i mit the coverage provided under Covered
Risk 5.
(b) Any governmental pof ice power. This Exclusion 1 (b) does not mod ify or t imit
the coverage provided under Covered Risk 6.
Rights of em i nent domain. This Exclusi on does not modify or limit the coverage
provided under Covered Risk 7 or 8.
Defects, liens, encu mbrances, adverse clai ms, or other matters
1 a) created, suffered. assumed, or agreed to by the Insured Clai manl;
(b) not Known to the Company, not recorded in the Publ ic Records at Date of
Policy, but Known to the Insured Claimant and not disclosed in writi ng to the
Company by the insured C laimanl prior to the date the I nsufed Claimanl
became an I nsu red under th is po I icy;
((I resu !ti ng in no loss or damage to the I nsu red Claimant;
(d) attach i ng or created subsequent to Date of Pol icy (however, this does nol
mod if I' 0 r I imit the coverage provided under Covered Risks 9 and 10); or
Ie) resulting in loss or damage that would not have been sustained if the Insured
Claimant had paid value for the Title,
Any clai m, by reason of the operation of federal bankruptcy, state insolvency, or
s imi jar cred itors' rig hts laws, that the transaction vesting the Title as shown in
Schedule A. is
(3) a frauDulent conveyance or fraudulent transfer: or
(b) a preferential transfer for any reason not stated in Covered Risk 9 of this pol icy
Any lien on the Title lor real estate taxes or assessments imposed by governmental
authority and created or attaching between Date of Pol icy and the date of record ing of
the deed or Diher instrument of transfer in the Publ ic Records that vests Title as
shown in Sciledu Ie A.
3.
4
5
CONDITIONS
1. DEFINITION OF TERMS
The following terms when used in this policy mean:
(a) ;'Amount of Insurance": The amount stated in Schedule A, as may be increased
or decreased by endorsement to this pol icy, increased by Section 8(b), or decreased
by Sectio~s 10 and 11 01 these Cond iti ons,
(b) "Date of Pol icy": The date designated as "Date 01 Pol icy" in Schedu Ie A.
(c)'Entit(: A corporation, partnership, trust. limited liabiliiy company, or other
sim i lar legal entity
Id) "Insured": The Insured named in Schedule A.
(i) The term "Insured" also includes
(A) successors to the Title of the Insured by operation 01 law as
d istingu i shed from purchase, i ncl ud ing he i rs, devisees, survivo rs,
personal representatives, or next of kin;
(6) successors to an Insured by dissolution, merger, conso I idation,
dislri buti on, or reorgan ization;
(C) successors to an I nsu red bl' its conversion to another ki nd of Entity;
(D) a grantee 01 an Insured under a deed del ivered without payment ot
actual valuable consideration conveying the Title
(1) if the stock, shares, membershi ps, or other equity interests of
the grantee are wholly-owned by the named I nsu red,
(2) if the grantee who III' owns the named Insured,
(3) if the grantee is wholly-owned by an atfi liated Entity oj the
named Insured, provi ded the affiliated Entity and the named Insured
are both wholly-owned by the same person or Entity. or
(4) if the grantee is a trustee or beneficiary of a trust created by a
wrHten instrument establ ished by the Insured named in Schedu Ie A
fa restate p lann ing purposes.
(ii) With regard to (AI. (6), (C), and (D) reserving, however, all ri ghts and
defenses as to any successor that the Company woul d have had agai nst any
predecessor Insured. .
(e) "I nsured C laima~t": An Insured claimi ng loss 0' damage.
(f) "Knowledge" or "Known': Actual knowledge. not construclive knowledge or
notice that may be imputed to an Insured by reason of the Publ ic Records or any other
records that impart constructive notice of matters affecti ng the Title.
(g) 'land": The land described in Schedule A, and atfixed improvements that by
law constitute real property. The term" Land" does not incl ude any property beyond
the lines 01 the area descri bed in Schedu Ie A, nor any right. litle, interest, estate, or
easement in abutting streets, roads, avenues, alleys, lanes, ways, or waterways, but
this does not mod if I' or I imit the extent that a right of access to and from the Land is
i nsu red by thi s pol icy,
(h) "~v1ortgage": Mortgage, deed of trust, trust deed, or other security instrumenl,
i neluding one evi denced by eleclron ic means authorized by law.
(i) "Public Records" Records eslabiished under state statutes at Date of Policy for
the purpose of i mparti ng construLlive notice of mailers relating to real properly to
purchasers for value and without Knowledge With respect to Covered Risk 5(d),
"Publ ic Records' shall also include envi ronmental protection liens fi led in the
records of the clerk of the United States District Court for the district where the Land
is located.
(j) "Title": The estate or interest described in Schedu Ie A,
(k) "U nmarketab!e Title": Title atfected by an alleged or apparent matter that woufd
permit a prospective purchaser or lessee of the Title or lender on the Title to be
released jrom the obi i gation to pu rchase, lease, or lend if there is a contractual
condition requiri ng the del ivery of markelab Ie title.
2. CONTINUATION OF INSURANCE
The coverage of this pol icy shal i conti nue in force as of Date of Pol icy in favor of an
Insured, but on Iy so long as the I nsu red retains an estate or inlerest in the Land, or holds
an obi igati on secured by a purchase money Mortgage given by a purchaser from the
I nsured, or only so long as the Insured shall have i iability by reason oj warranties in any
transfer or conveyance of the Title. This policy shall not conti nue in force in favor of any
purchaser from the Insured of either (i) an estate or interest in the Land, or (ii) an obligation
secured by a purchase money Mortgage given to the Insured.
3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT
The Insured shall notify the Company promptly in writi ng (i) incase of any I itigati on
as set forth in Section 5(a) of these Conditions, (ii) in case Knowledge shall come to an
Insured hereunder of any claim of title or interest that is adverse to the Title, as insured, and
that might cause loss or damage jor wh ich the Company may be liable by virtue oj this
policy, or {i ii} if the Tille, as insured, is rejected as U nmarketab Ie Title. If the Company is
prejudiced by the fai I ure of the Insured Claimant to provide prompt notice, the Company's
f iabil ity to the I nsured Claimant under the pol icy shall be reduced to the extent of the
prejudice
4. PROOF OF LOSS
I n the event the Company is unable to determ i ne the amount of loss or damage, the
Company may, at its optior, require as a condition of payment that the Insured Claimant
fu rnish a signed proof ot loss. The proof of loss must describe the defect, lien,
encumbrance, or other matter insured agai nst by this pol icy that constitutes the basis of
loss or damage and shall state, to the extent possible, the basis of calcu lating the amount
ot the loss or damage
5. DEFENSE AND PROSECUTION OF ACTIONS
(a) Upon written request by the I nsu red, and subject to the options contained in
Section 7 of these Cond itions, the Company, at its own cost and without
unreasonable delay, shall provide for the defense ot an Insured in I itigation in which
any third party asserts a claim covered by this policy adverse to the Insured. This
obi i gati on is Ii m ited to on Iy those stated causes of action alleging matters i nsu red
agai nst by th is policy. The Company shall have the right to select counsel oj its
choice (su bject to the right of the Insured to object for reasonable cause) to represent
the Insu red as to those stated causes of action. It shall not be I iable tor and wi II not
pay the Jees of any other cou nse I. The Company wi II not pay any fees, costs, or
expenses incurred by the I nsu red in the dejense of those causes of action that allege
matters not insured against by this pol icy
(b) The Company shall have the right, in addition 10 the options contained in
Po I icy Page 2
Secii on 7 of these Conditions, at its own cost, to institute and prosecute any acti on
or proceeding or to do any other act that in its opi nion may be necessary or desirable
to establ ish Ihe Title, as insured. or to prevent or reduce loss or damage to the
"Insured. The Company may lake any appropriate action under the terms of th is
pol icy, whether or not it shall be I iable to the Insured. The exercise of these rights
shall not be an admissi on of I iabi I ity or waiver of any provision of th is policy If the
Company exercises its righls under this subsection, it must do so d i I igently.
(c) Whenever the Company bri ngs an acti on or asserts a defense as requ i red or
permitted by this policy, the Company may pursue the litigation to a final
determination by a court of competent jurisdiction, and it exp ressly reserves the right
in its sole discretion, to appeal any adverse judgment or order.
6. DUTY OF INSURED CLAIMANT TO COOPERATE
(a) I n all cases where th is pol icy perm its or requires the Company to prosecute or
provide for the defense 01 any action or proceedi ng and any appeals, the Insured shall
secure to the Company the right to so prosecute or provide defense in the action or
proceeding, including the right to use, at its option, the name of the Insured for this
purpose, Whenever requested by the Companl', the Insured, at the Company's
expense, shall give the Company all reasonable aid (I) in securing evidence,
'lbtain i ng witnesses, prosecuting or defendi ng the action or proceed ing, or effecting
settlement, and (i i) in any other lawfu I act that in the opi nion of the Company may be
necessary or desirab Ie 10 establ ish the Title or any other matter as i nsu red. If the
Company is prejudiced by the fai I ure of the Insured to lu rn ish the required
cooperation, the Company's obi igations to the Insured under the policy shall
term inate, including any I iability or obf igation to delend, prosecute, or continue any
litigation, with regard to the matter or matters requ i ri ng such cooperation.
(b) The Company may reasonably requi re the Insured Claimant 10 subm it to
exami nation under oath by any authorized representative of the Company and to
produce jor exam i nati on, inspecti on, and copying, at such reasonable times and
places as may be designated by the authorized representative of the Company, all
records, in whatever med i um maintained, incl ud i ng books, ledgers, checks,
memoranda, correspondence, reports, e-mails, disks, tapes, and videos whether
bearing a date betore or after Date of Policy, that reasonably pertain to the loss or
damage, Fu rther, if requested by any authorized representative oj the Company, the
I nsured Claimant shall grant its perm iss i on. in writi ng, fo r any authorized
representative of the Company to exami ne, inspect, and copy all of these records in
the custody or contro I 01 a thi rd party that reasonably pertai n to the loss or damage
All i nformalion designated as confidential by the Insured Claimant provided to the
Company pursuant to this Secti on shall not be disclosed to others unless, in the
reasonable judgment of the Company, it is necessary in the administration of the
claim, Fai I ure of the I nsu red Claimant to subm it for exam ination under oalh, produce
any reasonably requested information, or grant permission to secure reasonably
necessary injormation from th i rd parties as requi red in this subsection, un less
prohibited by law or governmental regulation, shall terminate any I iabi I ity 01 the
Company under th is pol icy as to that clai m.
7. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; TERMINATION OF
LIABILITY
In case of a claim under this policy, the Company shall have the following additional
options:
(a) To Payor Tender Payment of the Amount of Insurance.
To payor lender payment of the Amount of Insurance under th is policy together with
any costs, atto rn eys' fees, and ex p en ses incurred by the Ins u red C I ai m a nt th at were
authorized by the Company up to the time of payment or tender of payment and that
the Company is obi igated to pay,
Upon the exercise by the Company of this oplion, all liability and obligations of the
Company to the I nsured under this pol icy, other than 10 make the payment requ ired
in this subsection, shall terminate. i ncludi ng any liabil ity or obi igation to defend,
prosecute, or conti nue any litigation.
(b) To Payor Otherwise Settle With Parties Other Than the I nsured or With the
Insured Claimant.
(i) To payor otherwise settle with other parties for or in the name of an
Insured Claimant any claim insured against under this policy, In addition, the
Company will pay any costs, attorneys' fees, and expenses incurred by the
Insured Claimant that were authorized by the Company up to the time of
payment and that the Company is obi igated to pay; or
(ii) To payor otherwise settle with the Insured Claimant the loss or damage
provided for under this po I icy, together with any costs, attorneys' fees, and
expenses incurred by the Insured Claimant that were authorized by the
Company up to the time of payment and that the Company is obligated to pay,
Upon the exercise by the Company of either of the options provided for in
subsections (b)( i) or (i i), the Company's obligations to the Insured under this policy
Jor the claimed loss or damage, olher than the payments requ i red to be made, shall
term inate, including any liability or obi igation to defend, prosecute, or conti nue any
litigation.
8. DETERMINATION AND EXTENT OF LIABILITY
This po I icy is a contract of i ndemn ity against actual monetary loss or damage
sustained or i ncu rred by the Insured Clai mant who has suffered loss or damage by reason
01 matters insured agai nst by this pol icy.
(a) The extent of I iabi I ity of the Company for loss or damage under th is pol icy shall
not exceed th e I esse r of
(i) the Amount of Insurance; or
(ii) the difference between the value of the Title as insured and the value of
the Title subject to the risk insured against by th is policy.
(b) If the Company pursues its rights under Section 5 of these Conditions and is
unsuccessful in establish i ng the Title, as insured,
(i) the Amou nl of fnsurance shall be increased by 10%, and
(ii) the Insured Clai mant shall have the right to have the loss or damage
determ ined either as of the date the claim was made by the Insu red Claimant or
as 01 the date it is settled and paid,
(c) In addition to the extent of liabi I ity under (a) and (b), the Company wi II also pay
those costs, altorneys' fees, and expenses incurred in accordance with Sections 5
and 7 of these Cond iti ons.
9, LIMITATION OF LIABILITY
(a) If the Company eslabl ishes the Title, or removes the alleged defect, lien, or
encumbrance, or cures the lack 01 a right of access to or from the Land, or cures the
claim of Unmarketable Title, all as insured, in a reasonably diligent manner by any
method, including I itigation and the complelion of any appeals, it shall have Jully
performed its obi igations with respect to Ihat matter and shall not be I iable for any
loss or damage caused to the Insu red,
(b) I n the event of any litigation, including I itigation by Ihe Company or with the
Company's consent the Company shall have no I iabi lity for loss or damage lJnti I
there has been a fi nal delerm ination by a court of competent jurisdiction, and
disposition of all appeals, adverse to the Title, as insured,
(c) The Company shall not be liable for loss or damage to the Insured for liability
voluntari Iy assumed by the Insured in settl ing any claim or suit without the prior
written consent of the Company,
10. REDUCTION OF INSURANCE; REDUCTION OR TERMINATION OF
LIABILITY
All payments under this pol icy, except payments made lor costs, attorneys' fees, and
expenses, shall reduce the Amou nt of I nsu rance by the amount of the payment.
11. LIABILITY NONCUMULATIVE
The Amount of Insurance shall be reduced by any amount the Company pays under
any policy insuring a Mortgage to which exception is taken in Schedule B or to which the
Insured has agreed, assumed, or taken subject, or which is executed by an Insured after
Date of Pol icy and which is a charge or lien on the Title, and the amount so paid shall be
deemed a payment to the Insured under th is policy.
12. PAYMENT OF LOSS
When I iabi I ity and the extent of loss or damage have been defi nitely fixed in
accordance with these Cond ilions, the payment shall be made within 30 days,
13, RIGHTS OF RECOVERY UPON PAYMENT OR SETTLEMENT
(a) Whenever the Company shall have settled and paid a claim under this pol icy, it
shall be subrogated and entitled to the rights of the Insured C lai mant in Ihe Title and
all olher rights and remedies in respect to the claim that the Insu red C lai mant has
against any person or property, to the extent of Ihe amount of any loss, costs,
attorneys' fees, and expenses paid by the Company. If requested by the Company,
the I nsured Claimant shall execute documents to evidence the transfer to the
Company of these rights and remedies. The Insured Claimant shall permit the
Company to sue, compromise, or settle in the name of the Insured Claimant and to
use the name of the Insured Claimant in any transaction or litigation involving these
Pol icy Page 3