An important part of title insurance is its emphasis on eliminating title risks before insuring. This means the insured buyer has the best possible chance for avoiding title claim and loss. Title insuring begins with a search of public land records for matters affecting the title to the subject real estate. The examination of documentary evidence from a search is intended to fully report all material objections to the title.
Frequently, instruments that don’t clearly pass title are found in the ‘chain’, or history, of ownership assembled from the records in a search. These deficient transfers need to be corrected before a clear title can be conveyed.
Here are some examples of instruments that can present concerns:
-
Deeds, wills and trusts that contain improper
-
Vesting’s and incorrect names.
-
Outstanding mortgages, judgments and tax liens.
-
Easements.
-
Incorrect notary acknowledgments.
HIDDEN TITLE HAZARDS – UNPLEASANT SURPRISES
In spite of the expertise and dedication that go into a title search and examination, hidden hazards can emerge after completion of a real estate purchase, causing an unpleasant and costly surprise.
Some examples are:
-
A forged deed that transfers no title to real estate.
-
Previously undisclosed heirs with claims against the property.
-
Instruments executed under expired or fabricated powers of attorney.
-
Mistakes in the public records.