The Importance of Title Insurance
Your First American Title Insurance Policy protects you against potential defects such as:
1. Forged deeds, mortgages, satisfactions, or releases
2. Deed by person who is mentally incompetent
3. Deed by person in a foreign country, vulnerable to challenge as incompetent, unauthorized, or defective under foreign laws
4. Deed challenged as being given under fraud, undue influence or duress
5. Deed signed by mistake( grantor did not know what was signed)
6. Deed executed under falsified power of attorney
An Owner’ s Title Insurance Policy is your best protection against potential defects that can remain hidden despite the most thorough search of public records. A Lender’ s Title Insurance Policy also exists to protect your mortgage lender’ s interest.
7. Undisclosed divorce of one who conveys as sole heir of a deceased former spouse
8. Deed affecting property of deceased person, not joining all heirs
9. Deed recorded but not properly indexed so as to be locatable in the land records
10. Undisclosed but recorded federal or state tax lien
11. Undisclosed but recorded judgment or spousal / child support lien
12. Undisclosed but recorded prior mortgage
You don’ t want a problem that occurred long before you bought your property to deprive you of ownership or your right to use or dispose of it.
And you don’ t want to pay the potentially high cost of defending your property rights in court.
13. Undisclosed but recorded boundary, party wall, or setback agreements
14. Misinterpretation of wills, deeds, and other instruments
15. Discovery of later will after probate of first will
16. Erroneous or inadequate legal descriptions
17. Deed to land without a right of access to a public street or road
For a one-time premium, First American agrees to reimburse you for covered losses suffered due to undetected defects that existed prior to the issue date of your First American policy, up to the amount of the policy.
Unless specifically excluded, your First American Title Insurance Policy also provides for legal defense costs.
18. Forged notarization or witness acknowledgment
19. Deed not properly recorded( wrong county, missing pages or other contents, or without required payment)
20. Deed to a purchaser from one who has previously sold or leased the same land to a third party under an unrecorded contract, where the third party is in possession of the premises