What Does Title Insurance Protect Against?

While not all title policies are identical, the following risks are protected against by most policies of title insurance:

 

  • Improperly recorded legal documents

  • Documents executed under false, revoked or expired powers of attorney

  • False impersonation of the true land owner

  • Gaps in the chain of title

  • Undisclosed heirs

  • Prescriptive rights in another not appearing of record and not disclosed by survey

  • Defective acknowledgements due to improper or expired notarization

  • Corporate franchise taxes as liens on corporate real estate assets

  • Forged deeds, mortgages, wills, releases of mortgages, and other instruments

  • Deeds which appear absolute, but which are held to be equitable mortgages

  • Deeds by minors

  • Conveyances by an heir, devisee, or survivor of a joint estate who attempts to attain title by wrongful means

  • Conveyances by undisclosed divorced spouses

  • Inadequate legal descriptions

  • Duress in execution of wills, deeds, and instruments conveying or establishing title

  • Issues involving delivery of conveyancing instruments

  • Deeds and wills by persons lacking legal capacity

  • Errors in tax records

  • State inheritance and gift tax liens

  • Administration of estates and probate of wills of missing persons who are presumed deceased

  • Issues of rightful possession of the land

  • Issues concerning the rightful conveyances by corporate entities

  • Legal capacity of foreign personal representatives and trustees

  • Issues involving improper marital status

  • Rights of divorced parties

  • Improper modification of documents

  • Conveyances in violation of public policy

  • Misinterpretation of wills and ancillary instruments

  • Deeds by persons falsely representing their marital status

  • Claims by creditors of decedent against property improperly conveyed by heirs and devisees

  • Issues concerning unlawful takings by eminent domain or condemnation

  • Special tax assessments

  • Forfeitures of real property due to criminal acts

  • Conveyances and proceedings affecting rights of military personnel protected by the Soldiers' and Sailors' Civil Relief Act

  • Issues concerning interests noted in financial statements filed under the Uniform Commercial Code

  • Interests arising by deeds of fictitious parties

  • Adverse possession

  • Lack of jurisdiction or competency of persons in judicial proceedings

  • False affidavits of death

  • Federal estate and gift tax liens

 

Pacific-Realtors.net recommends that all buyers of real estate obtain a policy of title insurance and utilize the services of an independent escrow company.

 

Differences Between CLTA and ALTA Title Policies

 

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