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