A forgery 50 years ago; a deed executed under duress; bigamy that went unknown; an error by a clerk in the county recorder's office; a misapplied tax payment — these are but a few of the hidden "title defects" that could cause you to lose your property. And, even if you don't lose your property altogether, title problems could make it impossible for you to sell.
You don't want a problem that occurred long before you bought your property to deprive you of ownership or your right to use or dispose of it. And you don't want to pay the potentially high cost of defending your property rights in court.
An Owner's Policy of title insurance is your best protection against potential defects that can remain hidden despite the search of public records. A Loan Policy of title insurance also exists to protect your mortgage lender's interest.
For a one-time premium, First American will issue you a policy protecting you against covered losses suffered due to undetected defects that existed prior to the issue date of your First American policy, up to the amount of the policy. Your First American title insurance policy also provides for legal defense costs unless the matter is excluded or excepted.
Here are 70 potential defects a title insurance policy protects you against:
1. Fraud & Forgery Risks
Forgery and fraud are among the leading causes of title disputes.
1. Forged deeds, releases, or wills
2. Deeds executed under false power of attorney
3. Falsified satisfaction of mortgage
4. Deeds signed by impersonators of the real owner
5. Fraudulent transfers made without the owner’s knowledge
6. Misrepresentation by someone claiming to act for the owner
7. Forged notary acknowledgments
8. False statements in recorded affidavits
9. Deed obtained through duress or coercion
10. Identity theft used to convey title
2. Recording & Clerical Errors
Even small recording mistakes can create major ownership problems.
11. Incorrect legal descriptions on a deed
12. Typographical errors in the public record
13. Deeds or mortgages mis-indexed by the recorder’s office
14. Missing pages or attachments in recorded instruments
15. Conflicting document versions recorded for the same property
16. Failure to properly record a deed or release
17. Misfiled or lost documents in county archives
18. Omitted signatures or missing witnesses
19. Unreleased prior mortgages due to paperwork error
20. Failure to note restrictive covenants or easements
3. Liens, Judgments & Unpaid Debts
Hidden debts can attach to your property — even if they aren’t yours.
21. Incorrect legal descriptions on a deed
22. Typographical errors in the public record
23. Deeds or mortgages mis-indexed by the recorder’s office
24. Missing pages or attachments in recorded instruments
25. Conflicting document versions recorded for the same property
26. Failure to properly record a deed or release
27. Misfiled or lost documents in county archives
28. Omitted signatures or missing witnesses
29. Unreleased prior mortgages due to paperwork error
30. Failure to note restrictive covenants or easements
4. Ownership & Heirship Issues
Disputes over who truly owns the property can arise years after closing.
31. Undisclosed heirs or missing wills
32. Unknown or missing spouses with marital property rights
33. Heirs born after a will was executed
34. Invalid or incomplete probate proceedings
35. Mistakes in interpreting wills or estates
36. Fraudulent estate sales or guardianships
37. Deeds executed by minors or legally incompetent persons
38. Void or invalid divorces affecting ownership
39. Prior transfers made without required spousal consent
40. Community-property or homestead rights not properly released
5. Boundary & Survey Disputes
Land boundaries aren’t always as clear as they appear.
41. Survey errors or inaccurate boundary lines
42. Encroachments from fences, garages, or driveways
43. Overlapping property descriptions
44. Disputed lot lines or monuments
45. Unrecorded easements granting others use of your land
46. Rights-of-way or access roads not disclosed in records
47. Public utility easements running through the property
48. Encroachments discovered after a new survey
49. Access denied to public roads
50. Neighbor claims of adverse possession
6. Defects in Deeds & Documents
Certain legal defects can make a deed or mortgage unenforceable.
51. Deeds executed by corporations without proper authority
52. Deeds executed under expired powers of attorney
53. Improperly delivered or unaccepted deeds
54. Deeds missing acknowledgment or notarization
55. Invalid reconveyances or partial releases
56. Defective judicial proceedings or foreclosures
57. Invalid subordination or assignment agreements
58. Deeds or liens signed after a corporate charter was revoked
59. Mistaken reconveyance of the wrong property
60. Inadequate consideration or defective transfer of title
7. Legal & Regulatory Complications
Government actions or overlooked regulations can affect ownership.
61. Conflicts between recorded plats and actual use
62. Violations of restrictive covenants or conditions
63. Failure of prior owners to comply with subdivision laws
64. Gaps in the chain of title
65. Erroneous boundary adjustments by public officials
66. Improper foreclosure procedures
67. Invalid tax sales or redemptions
68. Outstanding rights-of-redemption not extinguished
69. Easements granted to utility companies without consent
70. Conflicting rights arising from old mineral or water claims
Learn more about how First American can help you avoid title problems.
