The decision highlights the fact that title insurance policiesare contracts. Thus, coverage is limited to the terms of thepolicy. All interested parties should be aware of possible effectsof property transfers on title coverage when issuing or securingpolicies One should not assume that when property is transferredbetween related entities that the title policy is also transferred,even if the parties involved are identical.

FACTUAL BACKGROUND

Two brothers, Henry Shotmeyer and Charles Shotmeyer, formed aGeneral Partnership, Beaver Run Farms, to purchase and develop realestate. In 1981, the partnership purchased a 24.7-acre tract ofland. The deed recited the grantees as Henry J. Shotmeyer andCharles P. Shotmeyer, Partners trading as Beaver Run Farms, aGeneral Partnership. Subsequently, the Defendant, New Jersey RealtyTitle Insurance Co., issued a title insurance policy for theproperty, listing the insureds as Henry J. Shotmeyer and Charles P.Shotmeyer, Partners trading as Beaver Run Farms, a GeneralPartnership. The policy further specified that coverage would beextended to those that succeed in interest to the insured byoperation of law, to wit: The insured named in Schedule A and . . .those who succeed to the interest of such insured by operation oflaw as distinguished from purchase including, but not limited to,heirs, distributees, devisees, survivors, personal representatives,next of kin, or corporate or fiduciary successors.