YOU ASK:

Will title insurance purchased for refinancing cover judgments that were pending before my refinancing?

WE ANSWER:

It depends. The question seems to be complicated, as it covers pending judgments and a refinancing.

When refinancing your mortgage, the bank will ask you to get a new title insurance. After the title search is done, the professional will state in his title binder or title commitment the exceptions that the policy will not cover. This may include that specific case where a judgment has not yet been promulgated and remains pending.

The pending judgment may depend on whether the contested cause happened before the new policy became effective or after the policy became effective. If the event falls before the new policy's effective date, then it may be covered, unless the policy expressly states that it is part of the exclusions. If the event falls after the new policy's effective date, then the policy will not be covered.

You may also check whether your "old" or existing policy covers this pending judgment.

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