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<br />DIVISION OF INSURANCE <br />OEIARTYENT OI REGULATORT AGENGE6 <br />toe STATE OFFK[ e011.DIN0 . SOI E. G)IFAX AVE. <br />OENVEA. COLORADO a030i <br />STATE OF COLORADO <br />111CMY0 O. LAYY <br />6ORw" <br />~. w.cNwwo wwww[~. c. L. ~. <br />ce..u,w," <br />wowaw[ a. wwoww <br />o,.,n. cw..n.w,. <br />nay 1, 1977 <br />Dear Real Estate Purchaser: <br />Following this letter you will find a brief explanation of your title <br />Insurance Gxaal tment anti policy. <br />Title Insurance companies are regulated by this Ol vision, as are <br />other types of insurance companies, Thls Division makes certain Chet casr <br />ponies Issuing tl[le Insurance caasitmn[s and title Insurance policies are <br />flnancieliy sound, and that they operate in accordance with statutes and <br />re9ulatlons. <br />Me also have a great Interest In ewking certain that you, es the <br />consumer, understand the purpose of title Insurance and that you understand <br />your rights under your insurance poi icy. <br />In the event you arc dissat lsfled wf th responses given to your ques- <br />tions or problras by your title insurance coepany, you arc encouraged to <br />send your quest Ions conmrning title Insurance or any complaints that you <br />nay have against your title Insurer to [his offiu:. Ye arc on hand to make <br />u:rtain that all your rights and remedies, both under your policy and under <br />law, arc available to you at all times. <br />Sincerely, <br />CHARD BAIWES, C.L.U. <br />Lmm~lsslaner of Insuranu: <br />JRB:61 <br />As a purchaser of a home or other real estate you may receive a "Commitment for Tide Insursnoe"and e'Policy of TiNe Insurnce' Both of <br />these documents, like many oMers in connection with your purdusse, are contracts Creating legal rights whitli you should read carefully end <br />which you may wish to have examined and explained by a lawyer or other adviser. While the following description of these documents cannot <br />change the Drectse terms of Mese documents. it fs hoped that this will help you to understand their purpose and effect end answer some of <br />your questions about them. <br />QUESTION: "WHAT IS TITLE INSURANCE7" <br />ANSWER: Basically, it is a contract wiM the tide insurance company in which the company agrees to delend and indemniy you against <br />losses which you may suffer because o! unreported defects in ttte title 1o your property as of the date of the contrsd. It is not casualty <br />insurance and, therefore. does not protect you against acts of Chaff or damage to your home by lire, storm and the like. Essentially, the <br />insurance insures that you have tiNe to the property sublecl only to certain exceptions and exdusions listed in the Policy of Title Insurance. <br />Title insurance recognizes the possibility of foss, but irensfers dte risk of loss from you as properly owner to the company issuing the policy. <br />For Mis reason title insurance companies ere required to maintain reserves to cover lases. <br />11 you are financing your purChBae, your lender will ordinarily require that you obtain a separate Lerklefs Polity t0 insure that your property <br />will in fact serve as secttriy la its loan. <br />OUESTION:1ffHATQDES THE PREMIUM PAY FORT" <br />ANSWER: The one Ume, nonYecurtng premium pays for several things. It helps to peY tar the cost of collecting, rttaintaining, searching <br />and examitthp real estate records end certain other public records whidt relate to Your properly m that the title ireuranoe oompenY Can <br />determine dte instxability of your dde. For example, the title Nsurertce company wNl determine whether the Wtwic recatla eltow that your <br />seller really Owlfa the property, what morlgeges a dens (a recorded legal dNml mtay exlsL whether there ere reshictlve Wvertanl5 M your <br />