10 Common Title Mistakes

Is it really necessary to have title insurance? My home was just built recently and I know the prior owner? Yes, a title examination will uncover any hidden defects in the title to your property. The title to your property is not just for the structure erected upon the land. The title to your property is for the land.  Below are some of the most common title defects disclosed in a title exam:

1) Errors in the Public Records. This includes miss-indexed or clerical errors.

2) Unknown Liens. Banks, financing companies, and others may place liens on your property for any unpaid debts.

3) Illegal Deeds. An illegal deed may appear perfect but it could of possibly been executed by a minor, a person under duress, or a married person who stated to be single, are few examples.

4) Missing Heirs. When a property passes on to the owners heirs, some may be excluded or missing, or family members may contest the will of the owner, which can happen well after the transfer of ownership.

5) Forgeries. Since we do not live in a honest work, forged documents are becoming more and more common.

6) Undiscovered Encumbrances. These include prior owners mortgages, liens and even covenants and restrictions that limit the use of your property.

7) Unknown Easements. Easements that unknown can create prohibitions from using certain portions of your land. For example an easement may provide someone access to portions of your property, which cannot be blocked or built upon.

8) Boundary Line Disputes. Surveys are completed to indicate the boundary lines of your property. There may be surveys of adjoining parcels, that permits a neighbor to claim ownership to a portion of your property.

9) Undiscovered Will. When a prior owner of your property is deceased, it may take several years before an unknown heir or heirs to a property come to light. 

10) False Impersonation.  Similar names or common names make it possible for false impersonation to happen. If you purchase your property sold under this condition, the actual owner can stake a claim to the property.