21 Hidden Title Defects

21 Important Reasons You Should Have Owner's Title Insurance

OWNER'S TITLE INSURANCE will protect you against these hidden risks which would not be disclosed by even the most meticulous search of public records:

1. Forgery
2. Fraud in connection with the execution of documents
3. Undue influence on a grantor or executor
4. False personation by those purporting to be owners of the property
5. Incorrect representation of marital status of grantors
6. Undisclosed or missing heirs
7. Will not properly probated
8. Mistaken interpretation of wills and trusts
9. Mental incompetence of grantors
10. Conveyance by a minor
11. Birth of heirs subsequent to the date of the will
12. Inadequate surveys
13. Incorrect legal descriptions
14. No-delivery of deeds
15. Unsatisfied claims not shown on the record
16. Deeds executed under expired or false power of attorneys
17. Confusion due to similar or identical names
18. Dower or curtesy rights of ex-spouse or former owners
19. Incorrect indexing
20. Clerical errors in recording legal documents
21. Delivery of deeds after the death of a grantor

You mean an Owner's Title Insurance Policy insures against these title defects occurring?
No. But Owner's Title Insurance does eliminate the risk of loss to you resulting from claims against the title. Up to the policy amount, the insuring company will pay the claim amount, negotiate a settlement, or assume all legal expenses involved in settling the claim.

If Owner's Title Insurance covers so many expenses and possible losses, it must be expensive?
No. Owner's Title Insurance is one of the least expensive forms of insurance.
And do I pay only one premium?
Yes. One modest premium insures your home for as long as you or your heirs have an interest in it.

Do I have to renew my Owner's Title Insurance?
No. Your Owner's Title Insurance remains effective as long as you own your home or property, sell it and take back a purchase money mortgage for the sales price, or as long as you can be held liable under the warranties contained in a deed of sale.

What should I look for in selecting a company to insure my title?
Look for someone with a sound reputation for paying claims; experience in all phases of title insurance, and efficient and dependable service to policyholders. Someone like Investors Title Insurance Company.

What happens if a claim is asserted against my title?
Upon notice of a claim, and the company may, after investigation,
1) repair the problem with the adverse party, for example it may pay any valid liens which were not disclosed in the title examination, 2) it may defend any litigation in which your title is brought into question, or 3) pay you the amount of damages arising from the claim pursuant to the policy provisions. In the event of litigation the company employs or approves counsel on your behalf and pays these attorneys fees and related expenses.

What is the cost of title insurance?
An owner's policy is issued based on the payment of a single premium at the prevailing rates approved or sanctioned by the respective Department of Insurance, and the coverage of the policy continues for as long as the insured holds an interest in the land or remains liable under any warranties of title arising from his or her subsequent conveyance. No further premiums are paid during the life of the policy.