Case of Sam and Martha.docx - Surname 1 Student's name Instructor's name Course Date Case of Sam and Martha As indemnity insurance title insurance

Case of Sam and Martha.docx - Surname 1 Student's name...

This preview shows page 1 - 3 out of 3 pages.

Surname 1 Student's name Instructor's name Course Date Case of Sam and Martha As indemnity insurance, title insurance protects a property holder from any kind of financial loss sustained as a result of defects in a title to a specific property. In essence, it protects against claims for past occurrences such as property ownership by a third party and any litigation that challenges the legality and validity of the new property owner. However, the title insurance does not protect a property holder against known title defects which were clearly communicated or revealed to him or her before the actual purchase took place (Daniel, 145). Thus, in the case of Sam and Martha, the title insurance would not cover them against Paul’s claim. This is because before Peter sold the house to Sam and Martha, he actually informed them about Paul’s interest in the house whilst assuring them that he had absolute authority to sell the house where they proceed and purchased the house.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture