The most common problems that are covered by title insurance include fraud, forgery, judgments, unpaid taxes, liens, defective deeds, clerical errors within the public records, and mental incompetence. Any of these defects may jeopardize your ownership rights of the said property.
However, should a claim arise, in accordance with the terms of your policy, your title insurance policy is there to assure you of a legal defense.
Charges for Title Insurance may vary but are considered to be very reasonable as normally it is a nonrecurring fee at the time of closing.
Title Insurance Protection
Some common hidden risks protected under a title policy:
- False Impersonation of the true owner of the property by your seller or other persons formerly in the title.
- Forged deeds, releases, and other documents
- Deeds By Persons of Unsound Mind
- Deeds By Minors
- Invalid Documents executed under expired power of attorney
- Invalid Deeds delivered after the death of the grantor
- Deeds by Supposedly Single persons but actually married
- Fraud
- Liens For Unpaid Estate Inheritance and gift taxes against prior owners of your home
- Unrecorded Easements – rights of way
- Undisclosed Heirs of former owners of your home or the land on which it is situated.
Title insurance adds the security of ownership and peace of mind to the homeowner and the lender. Talk to a trusted and reputable title company for their guidance and services to avoid any and all hidden issues.