Q.
Why is title insurance necessary, and why do so
many banks and lenders require it?
A.
Title insurance is very much misunderstood and
probably one of the most complained about types
of insurance. There are many reasons a title
should be researched for protection of the
parties in a real estate transaction.
Owner’s title
insurance generally pays for the defense of your
title against the following (partial list) types
of claims and will protect you against hidden
risks:
1.
Types of forgery.
2.
Types of fraud
concerning the execution of documents.
3.
Undue influence on a
grantor or executor.
4.
False impersonation by
those purporting to be owners of the property.
5.
Marital status
incorrectly represented.
6.
Missing or undisclosed
heirs.
7.
Last will and
testament improperly probated.
8.
Fraudulent or mistaken
interpretation of wills and trusts.
9.
Conveyance by a mental
incompetent.
10.
Conveyance by a minor.
11.
Subsequent heirs to an
estate.
12.
Improper or inadequate
surveys.
13.
Improper, incorrect or
misleading legal descriptions.
14.
Non-delivery of deeds.
15.
Claims of unsatisfied
claims or invoices not shown on the public
records.
16.
Deeds executed under
expired or fraudulent powers of attorney.
17.
Claims due to mistaken
or similar names.
18.
Claims due because of
dower or curtsey rights of ex-spouses.
19.
Deliverance of deeds
after the death of a grantor.
20.
Clerical errors and
improper or incorrect indexing.
