Title insurance is one of those overlooked items when buying a new property, but they are important. Title insurance protects your investment, and if you are financing, your lender will require this form of insurance, too.
A title search isn’t enough to protect you and even the best title company can miss a pending lien if it hasn’t been officially filed with the courts.
- Any documents that have been written under a false identity or any expired powers of attorney that were used without authorization.
- Undisclosed heirs who try to claim rights to the home.
- Improperly recorded documents.
- Rights for not appearing or any non-disclosed information from the survey.
- Failure to include any required parties in a court procedure.
- Any business taxes that have liens on the home or liens because theproperty is listed as a corporate real estate asset.
- Mistakes or purposeful omissions in the documentation.
- Forged legal documents, including mortgages, wills, deeds, release of mortgages, etc.
- Deeds that were signed by minors.
- Any type of conveyance by an heir or survivor of a joint-owned estate.
- Inadequate legal descriptions in the title documents.
- Undisclosed divorce spouses and conveyances.
- The claims of duress regarding any deeds, wills or other instruments used to establish a title.
- A will or deed that was signed by a person who lacked the mental capacity to do so.
- Gift tax or inheritance tax liens by the state.
- Tax record errors.
- Substandard building lines or demolition lines that were inaccurate.
- Missing persons or those who were presumed dead at the time of the administration of an estate.
- Any issues of rightful possession for the property.
- The legal capacity of a trustee or the foreign representative of the house.
- Improper modification of wills, title or mortgage documents.
- Misinterpreted rights of two divorced individuals.
- Marital status issues.
- Special tax assessments that have been made against the property.
- Criminal acts that resulted in forfeiting a home.
There are ways to protect yourself from all of these unforeseeable circumstances. Just by having title insurance, you can reduce your liabilities and ensure someone cannot make claims to your home long after you buy it. Contact Title Lab today to learn more about title insurance or for a free quote.