Even with extensive title searches by professionals, there are numerous defects that could still affect the title of a property. Examples of defects could be legal document recording mistakes, falsified documents, undisclosed heirs, unpaid or unreleased mortgages, unpaid taxes, liens or judgments, fraudulent impersonation, ownership claims from third parties, acreage discrepancies, lack of access, lot lien disputes, encroachments from adjacent properties, undisclosed easements giving third parties access over your property as well as many other issues not specifically named here+. Â Unlike other insurance that covers future events, title insurance protects against past issues* that existed before the purchase but were unknown and/or undisclosed at closing. Â It involves a one-time premium.
+Contact your agent and/or underwriter for a full detailed list of all matters covered under the title policy.
*Enhanced Homeowners Policies can provide limited coverage over future events such as fraud. Please check with your agent and/or Underwriter for more info.