What Does Title Insurance Protect Against?

Title insurance covers the insured party for any claims and legal fees that arise out of such problems. These rights or claims remain attached to the title to the property until they are rectified.

  • False impersonation of the true owner of the property
  • Forged deed releases or wills
  • Instruments executed under invalid or expired power of attorney
  • Undisclosed or missing heirs
  • Mistakes in recording legal documents
  • Misinterpretations of wills
  • Deeds by persons of unsound mind
  • Deeds by minors
  • Deeds by persons supposedly single, but in fact married
  • Liens for unpaid estate, inheritance, income or gift taxes
  • Fraud

If a claim is made against your insured title, the title insurance provider protects you by:

  • Defending your title, in court if necessary, at no cost to you.
  • Bearing the cost of settling the case, if it proves valid, in order to protect your title and maintain your possession of your property.

Title insurance gives you the assurance that possible claims on title to the property can be discovered from the public records – have been called to your attention so that these defects can be corrected. It is insurance that, if any undiscovered claims covered by your policy arise out of the past to threaten your ownership of real estate, it will be disposed of, or you will be reimbursed exactly as your title insurance policy provides.

(from Title360 Home Seller’s Guide)

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