20 Reasons for Title Insurance

Every owner, purchaser and beneficiary should have an insured title. The entire investment depends upon the quality of title. Our title policy protects you against unforeseen defects in title that even the most thorough examination may not show. Here are a few examples of title defects.

• Claims constantly arise due to marital status and validity of divorces. Only title insurance protects against claims made by non-existent or divorced “wives” or “husbands”.
• Title insurance covers attorneys' fees and court costs that may result from "conflict of title".
• Title insurance reimburses you for the amount of your covered losses, for a one-time charge, when you purchase an owners policy.
• A deed or mortgage in the chain of title may be a forgery.
• A deed or a mortgage may have been signed by a person under age.
• A deed or a mortgage may have been made by an insane person or one otherwise incompetent.
• A deed or a mortgage may have been made under a power of attorney after its termination and would, therefore, be void.
• A deed or mortgage may have been made by a person other than the owner, but with the same name as the owner.
• The testator of a will might have had a child born after the execution of the will, a fact that would entitle the child to claim his or her share of the property.
• A deed or mortgage may have been procured by fraud or duress.
• Title transferred by an heir may be subject to a federal estate tax lien.
• An heir or other person presumed dead may appear and recover the property or an interest therein.
• A judgment or levy upon which the title is dependent may be void or voidable on account of some defect in the proceeding.
• Title insurance helps speed negotiations when you’re ready to sell or obtain a loan.
• By insuring the title, you can eliminate delays and technicalities when passing your title on to someone else.
• A deed or mortgage may be voidable because it was signed while the grantor was in bankruptcy.
• Each title insurance policy we write is paid up, in full, by the first premium for as long as you or your heirs own the property.
• There may a defect in the recording of a document upon which your title is dependent.
• Many lawyers, in giving an opinion on a title, protect their clients as well as themselves, by procuring title insurance.
• Over the last 24 years, claims have risen dramatically.

Examples of What Title Insurance Protects Against

Here are just a few of the most common hidden risks which cause a loss of title or create an encumbrance on title:

• Clerical errors by the county when recording documents
• Misrepresentation of ones’ marital status
• Forged deeds, releases or wills, instruments executed under invalid or expired power of attorney
• Title taken as a result of an improperly probated will
• Undisclosed or missing heirs
• Defective deeds or deeds by persons supposedly single, but in fact married
• Fraud, forgery – falsification of records
• Liens for unpaid estate, inheritance, income or gift taxes
• Mechanics’ lien claims, unpaid taxes
• Easement issues