Title Insurance Explained

Title Insurance Explained


Title insurance protects owners and lenders against financial loss due to defects in a title to real property and/or from the invalidity or unenforceability of mortgage liens or other matters.

The following matters are examples of why one needs an owner’s title insurance policy.  Remember that the best title examination or search cannot protect your equity and real property from matters not appearing in the Public Records.  Title insurance will, however, protect your from:

 

1)      Documents executed under false, revoked or expired power of attorneys;

2)      False impersonations of the true land owners’;

3)      Undisclosed heirs;

4)      Improperly recorded legal documents;

5)      Prescriptive rights in another tract of land not appearing of record or disclosed by a survey;

6)      Failure to include necessary parties to certain judicial proceedings;

7)      Defective acknowledgements due to improper or expired notarization;

8)      Corporate franchise taxes as liens on corporate real estate assets;

9)      Gaps in the chain of title;

10)   Mistakes or omissions resulting in improper abstracting;

11)   Forges deeds, mortgages, wills, releases of mortgages and other instruments;

12)   Deeds where in a minor is the Grantor;

13)   Deeds which appear absolute, but which are held to be equitable mortgages;

14)   Conveyances by an heir, devisee or survivor of a joint estate who attempts to gain title illegally;

15)   Inadequate or incorrect legal descriptions;

16)   Conveyances by undisclosed divorced spouses;

17)   Duress in execution of wills, deeds and instruments conveying or establishing title;

18)   Deeds  and wills by persons lacking legal capacity;

19)   State inheritance and gift tax liens;

20)   Special tax assessments;

21)   Real estate homestead exemptions;

22)   Adverse possession;

23)   Federal estate and gift tax liens;

24)   And much, much more!

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