How does title insurance protect me?

Title Insurance is unique when compared to many other types of insurance available. Title Insurance takes proactive steps to insure that your real estate ownership is unencumbered. So since you are not covered for future events that may impact your title - it is the past events that you do not want to effect your good and marketable title. Certain title defects can prohibit you from selling, mortgaging or even giving away your property. So you can see why it is important to understand what coverage is provided.

These are but a few of the protections provided by your Title Insurance Policy

Forged deeds, mortgages, satisfactions or releases

Deed by a person who is mentally incompetent

Deed by a minor that can be disavowed

Deed from a corporation, unauthorized under corporate bylaws or given under a false corporate resolution

Deed from partnership that is not authorized under it's partnership agreement

Claims resulting from the use of an alias or fictitious name style by a predecessor in title

Deed following a foreclosure where the proper procedures were not followed

Falsified Power of Attorney

Undisclosed Divorce

Undisclosed Liens recorded in the County Clerk's Office

Undisclosed Mortgages recorded in the County Clerk's Office

Improperly indexed documents in the County Clerk's Office

Property that is land locked, having no access to a public road

Prior decedents estate interests

Improper legal descriptions

Undisclosed recorded easements, covenants, restrictions, agreements

Prior Real Estate Tax Liens

Again, these are just some of the coverages that the title insurance policy provides. The title commitment that your attorney will receive prior to closing will detail your coverages. Any items that need to be cleared before closing will also be disclosed in the commitment.