By Janet Moe & Maria Brandenburg | Great American Title
Many investors currently buy properties in their personal name and later decide to convey them into an LLC. What happens to their Title Owner’s policy when they decide to transfer it into an LLC? If they deed the property into the LLC, they run the risk of losing their coverage.
Owner’s Title Insurance policies provide Continuation of Coverage with the following underwriting guidelines approved by an Underwriter:
- The Policy insures You forever, even after You no longer have Your Title. You cannot assign this policy to anyone else.
- The Policy also insures:
-
- Anyone who inherits Your Title because of Your death;
- Your spouse who receives Your Title because of the dissolution of Your marriage;
- The trustee or successor trustee of a Trust or any Estate Planning Entity to whom You transfer Your Title after the Policy date;
- The beneficiaries of Your Trust upon your death; or
- Anyone who receives Your Title by a transfer effective upon Your death as authorized by law.
- The Title Insurer may assert against the insureds identified in a) and b) above any rights and defenses that They have against any previous insured under the Policy.
When in doubt about whether you have lost your title insurance by deeding to an LLC, please consider opening a Title Only file to obtain title insurance and insure your LLC with Great American Title Agency.
Thank you for choosing Great American Title for your marketing and escrow needs!
Your Partners,
Janet Moe & Maria Brandenburg