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Common Title Obstacles and How to Avoid Them

March 10, 2017

Title insurance exists in order to protect you from title problems that may have been unbeknownst to you until after you closed your transaction.

All of your hard work has finally paid off because you just found your dream house. This dream house of yours may be new to you, but every house has a history. Upon buying your house, you are not given the piece of property, you are given title–which is the owner’s right to possess and use the property. But there may be some issues of which you were unaware that may arise once you are all settled into your new home. If these issues arise, what are you to do? You are now the legal owner of that title. Title insurance can help. Here are a few common obstacles that can arise with your title insurance.

How can a title search help?

A title search brings to light many of these potential issues. It is executed through a thorough search of public records to look up the history of property ownership. A search may reveal not only the limitations on said property, but any liens or monetary obligations that are pending against the property.

What is title insurance?

Title insurance is a fairly strange concept because it covers for things that have already happened. You can’t get a life insurance policy on someone who had already died and you can’t purchase auto insurance on a car that’s been through the accident for which you want to insure.

But it’s not always that simple. There could be issues that happened before you bought your title that may arise after, for which a title insurance company will not cover you.

What obstacles can arise with title insurance?

Problems that can arise with titles after you purchase your property include the following, all done by the previous owners:

  • Forged documents
  • Forged mortgages
  • Impersonation of the true owners by fraudulent persons
  • Instruments that were executed under expired or fabricated power of attorney

If you want to make sure that your experience with titles and title insurance is not overcomplicated, our experts can lend you a hand. Contact us today to get started!

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