Wednesday, September 29 2010
A real estate purchase is one of the best investments you can make — so be certain to protect your land ownership against possible title problems that can hinder the transfer and marketability of your real property. These problems are defects and occur before the date of the policy and remain undisclosed until sometime later. Even the most thorough search of the public records cannot reveal some the "hidden" hazards.
A one-time premium will safeguard your property from actual loss and defense costs (unless specifically excluded), up to the policy amount, resulting from any risk covered by your policy. A mortgage policy protects only your lender against tide defects. Purchasing an owner's policy of tide insurance will protect your interests. Title insurance covers tide defects such as:
1. Forged deeds, mortgages, releases of mortgages and other instruments.
2. False impersonation of the true owner of the land or of his consort.
3. Instruments executed under fabricated or expired power of attorney (death).
4. Deeds apparently valid but actually delivered after death of grantor or grantee, or without
consent of the grantor.
5. Deeds by persons of unsound mind.
6. Deeds by minors.
7. Deeds not properly delivered.
8. Deeds that appear to convey title but are really mortgages.
9. Outstanding prescriptive rights not of record and not disclosed by survey.
10. Descriptions apparently, but not actually, adequate.
11. Duress in execution of instruments.
12. Defective acknowledgment due to lack of authority of notary. (Acknowledgement taken
before commission or after expiration of commission)
13. Deed or property recited to be separate property of grantor, which is in fact, community or
14. Deed from bigamous couple. (Prior existing marriage in another jurisdiction)
15. Undisclosed divorce of spouse who conveys as sole heir of deceased consort.
16. Undisclosed heirs.
17. Misinterpretation of wills, deeds and other instruments.
18. Birth or adoption of children after date of will.
19. Children living at date of will but not mentioned therein.
20. Discovery of will of apparent intestate.
21. Discovery of later will after probate of first will.
22. Administration of estate and probate of wills of persons absent but not deceased.
23. Conveyance by heir, devisee or survivor of a joint estate who murdered the decedent.
24. Deed from trustee of purported business trust, which is in fact, a partnership or joint stock
25. Deed of executor under non-intervention will when order of solvency has been fraudulently
procured or entered.
26. Deeds to or from corporations before incorporation or after surrender, or forfeiture, of
27. Claims of creditors against property conveyed by heirs/devisees within prescribed period
after owner's death.
28. Mistakes in recording legal documents. For example, incorrect indexing, errors in
transcribing and failure to preserve original instrument.
29. Record easement, but erroneous ancient location of pipe or sewer line, which does not
follow route of granted easements.
30. Special assessments where they become liens upon passage of resolution and before
recordation or commencement of improvements for which assessed.
31. Want of jurisdiction of person in judicial proceedings.
32. Failure to include necessary parties in judicial proceedings.
33. Federal estate and gift tax liens.
34. State inheritance and gift tax liens.
35. Errors in tax records. For example, listing payment against wrong property.
36. Ineffective waiver of tax liens by tax or other governing authorities repudiated later by
37. Corporation franchise taxes as lien on all corporate assets, notice of which does not have to
be recorded in the local recording office.
38. Erroneous reports furnished by tax officials, but not binding on municipality.
39. Tax homestead exemptions set aside as fraudulently claims.
40. Lack of capacity of foreign personal representatives and trustees to act.
41. Deeds from nonexistent entities.
42. Interests arising by deeds to fictitious characters to conceal illegal activities on the premises.
43. Deed in lieu of foreclosure set aside as being given under duress.
44. Ultra vires deed given under falsified corporate resolution.
45. Conveyances and proceedings affecting right of servicemen protected by the Soldiers and
Sailors Civil Relief Act.
46. Federal condemnation without filing of notice. Federal law does not require filing of notice
of taking in local recording office.
47. Break in chain of title beyond period of examination or public records where running of
adverse possession statue has been suspended. True owners are incompetent, absent or
incarcerated or the sovereign holds title.
48. Deed from record owner of land where he has sold property to another purchaser on
unrecorded land contract and the purchaser has taken possession of premises.
49. Void conveyances in violations of public policy: payment on gambling debt, payment for
contract to commit crime or conveyance made in restraint of trade.