Policy Of Title Insurance Template (Page 2 of 3) in pdf

All that certain parcel of land situate in the County of _________, State of _________, described as follows:

_________.

Stipulations

1. This policy does not insure against, and the company will not be liable for loss or damage created by or arising

out of any of the following: (a) defects, liens, claims, incumbrances, or other matters which result in no pecuniary loss

to the insured; (b) defects, liens, incumbrances, or other matters created or occurring subsequent to the date of this

policy; (c) defects, liens, incumbrances, or other matters created or suffered by the insured claiming such loss or

damage, or existing at the date of this policy and known to the insured claiming such loss or damage, either at the

date of this policy or at the date such insured claimant acquired an estate or interest insured by this policy, unless

such defect, lien, claim, incumbrance, or other matter shall have been disclosed to the company in writing prior to the

issuance of this policy. Any rights or defenses of the company against a named insured shall be equally available

against any person or corporation who shall become an insured under this policy as successor of that named

insured.

2. The company at its own cost shall defend the insured in all actions or proceedings against the insured founded

upon a defect, lien, incumbrance, or other matter insured against by this policy, and may pursue such litigation to

final determination in the court of last resort. In case any such action or proceeding shall be begun, or in case

knowledge shall come to any insured of any claim of title or interest adverse to the title as insured, or which might

cause loss or damage for which the company shall or may be liable by virtue of this policy, such insured shall at once

notify the company in writing. If such notice shall not be given to the company at least five days before the

appearance day in any such action or proceeding, or if such insured shall not, in writing, promptly notify the

company of any defect, lien, incumbrance, or other matter insured against, or of any such adverse claim which shall

come to the knowledge of such insured, in respect to which loss or damage is apprehended, then all liability of the

company as to each insured having such notice in regard to the subject of such action, proceeding, or claim shall

cease and terminate; provided, however, that failure to so notify shall in no case prejudice the claim of any insured

unless the company shall be actually prejudiced by such failure. The company shall have the right to institute and

prosecute any action or proceeding or do any other act which, in its opinion, may be necessary or desirable to

establish the title, or any insured lien or charge, as insured. In all cases where this policy permits or requires the

company to prosecute or defend any action or proceeding, the insured shall secure to it in writing the right to so

prosecute or defend that action or proceeding, and all appeals in the action or proceeding, and permit it to use, at its

option, the name of the insured for that purpose. Whenever requested by the company the insured shall assist the

company in any such action or proceeding, in effecting settlement, securing evidence, obtaining witnesses,

prosecuting or defending such action or proceedings to such extent and in such manner as is deemed desirable by

the company, and the company shall reimburse the insured for any expense so incurred. The company shall be

subrogated to and be entitled to all costs and attorney's fees incurred or expended by the company, which may be

recoverable by the insured in any litigation carried on by the company on behalf of the insured. The word

"knowledge" in this paragraph means actual knowledge, and does not refer to constructive knowledge or notice

which may be imputed to the insured by reason of any public record or otherwise.

3. The company reserves the option to pay, settle, or compromise for, or in the name of, the insured, any claim

insured against or to pay this policy in full at any time, and payment or tender of payment of the full amount of this

policy, together with all accrued costs which the company is obligated to pay this policy, shall terminate all liability of

the company under this policy, including all obligations of the company with respect to any litigation pending and

subsequent costs of that litigation.

4. Whenever the company shall have settled a claim under this policy, it shall be subrogated to and be entitled to

all rights, securities, and remedies which the insured would have had against any person or property in respect to

that claim, had this policy not been issued. If the payment does not cover the loss of the insured, the company shall

be subrogated to such rights, securities, and remedies in the proportion which the payment bears to the amount of

the loss. In either event the insured shall transfer, or cause to be transferred, to the company those rights, securities

and remedies, and shall permit the company to use the name of the insured in any transaction or litigation involving

those rights, securities, or remedies.

5. The company has the right and option, in case any loss is claimed under this policy by an insured owner of an

indebtedness secured by mortgage or deed of trust, to pay such insured the indebtedness of the mortgagor or trustor

under the mortgage or deed of trust, together with all costs which the company is obligated to pay under this policy,

in which case the company shall become the owner of, and such insured shall at once assign and transfer to the

Policy Of Title Insurance Template Page 2

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