Why You Need Owner’s Title Insurance
These are just some of the hidden title risks that would not be disclosed by even the most meticulous title search, but are covered by an Owner’s policy of title insurance:
- Forgery
- Fraud in the execution of documents
- Undue influence on a grantor of a deed
- False impersonation by someone purporting to be the owner of the property
- Errors in surveys
- Undisclosed or missing heirs
- Wills not properly probated
- Misinterpretation of wills and trusts
- Mental incompetence of a grantor of a deed
- Transfer of title by a minor
- Heirs born after the execution of a will
- Incorrect legal descriptions
- Non-delivery of deeds
- Unsatisfied claims not shown on the record
- Deeds executed under expired or false powers of attorney
- Confusion due to similar or identical names
- Dower or courtesy rights of spouses of former owners
- Incorrect indexing of the land records
- Clerical errors in recording legal documents
- Delivery of deeds after the death of the Grantor
How Title Insurance Works
As property changes hands, mistakes and irregularities — often made long before you expressed interest in the property — can place your ownership in dispute. The seller may have:
- Avoided disclosure of using the property as collateral for an unpaid loan.
- Fraudulently claimed to be the sole owner.
- Failed to pay real estate taxes.
- Even a simple mistake in the recording of legal documents, improper execution of legal instruments or the reappearance of undisclosed or missing heirs can result in the loss of your home.