Condo closings can be overwhelming, but unit owners shouldn’t overlook the fine print of their title insurance commitments. Title refers to property ownership. To protect their ownership rights, many unit owners purchase title insurance, which covers the costs to defend or resolve title disputes affecting their property. However, most title insurance commitments have exclusions that are specific to condos.
Condo documents and any rights pursuant to them are usually excluded, including the declaration and all amendments thereto. This means that title insurance does not cover appurtenances or limited common elements, such as parking spaces, storage areas, boat slips, and exterior terraces – all of which originate from the condo documents. When you purchase your condo, you are also purchasing the right to use and enjoy those areas; however, you will not hold title over the physical spaces.
If, for example, you arrive at your new condo unit and find that your parking space is taken by someone else, title insurance will most likely not be available to help you resolve the dispute.
Before you purchase your condo, it is critical to carefully review the exclusions to your title insurance commitment and to obtain as much information as possible for your appurtenances.
Following the closing, if you find yourself in such a dispute, please do not hesitate to schedule a consultation with our office. Our firm is uniquely experienced in handling these matters, having resolved a multitude of them.
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