Ordinary Title Issues and Problems That Could Cost You:

Have you considered reasons why you need a title insurance policy? 

Your home could be new to you, although just about every house carries a prior heritage. A good title abstract search will help discover almost any title flaws linked with your property. In addition to, based on terms and conditions in the policy, your current title insurance policy delivers safeguards to suit your needs by title defects that may become recognized when you finally close your current financial transaction. Some of these title problems regularly found or needing to be resolved are:

Ø  Unidentified  Liens: Previous property owners may have unresolved debt or former debts that is not your personal obligation but lending institutions, financial companies and banks can place liens on your property for unsatisfied debt after you close on the purchase of your new property.  For properties under current financial distress like foreclosure, short sale or REO this is an area of special concern and value provided by title insurance.
Ø  Unlawful Deed:  It’s possible the chain of title on a property looks fine the possibility exists for a prior deed to have been made by a minor, immigrant with undocumented status, a person of unsound legal mind, or a person reported as single when in reality they were married.  These are examples of situations that could adversely affect the enforcement or ownership of prior deeds.
Ø  Public Record Mistakes, Errors or Omissions:  People working in clerical or filing services can make honest mistakes.  When they do the errors can be frustrating or difficult to resolve without financial stress and considerable time when you try to solve them. 
Ø  Omitting Heirs:  When an owner passes away, the ownership of the property may fall to their heirs or someone named in a will.  If the heirs are missing or unknown at the time of the owner’s death the possibility exists for heirs or family to contest the will or handling of the estate.  These circumstances can occur subsequent to your property purchase and could affect your rights to the property.
Ø   Survey and Boundary Issues:  You may have ordered a survey of the property you purchase or viewed an existing one but other prior surveys may still be out there or previously recorded showing changes or differences in boundary designations.  It is possible bordering property owners or some other party could claim rights to a certain portion of your property purchase at a date in the future.
Ø  Newly Discovered Will:  When the owner of a property passes away with the appearance of no valid will or heirs the state could sell the assets of the deceased including the property.  When you buy a home or property you as the buyer assume the rights as owner.  In the future a will could be discovered and surface potentially endangering the rights to your property.
Ø  Undisclosed Easements:  Even if you own your land, home or improvements on it the possibility exists for unknown easements at the time of your purchase to prohibit or deny you the rights to use the property the way you prefer.  It could even allow other parties access to some or all of your property.  Easements usually pose non-monetary issues, they can still adversely affect the way you intend to use or enjoy the land or home on it.
Ø  Forgery and False Documents:  The world we live in is not completely honest.  A false or fabricated legal document filed with public records could make difficult circumstances for you and your legal rights to the property once they are discovered and need to be resolved.
Ø  Unknown Encumbrances:  When you buy a property or home it is possible a third party may hold claim to some portion or the entire property.   Examples of this include but are not limited to unknown liens, prior mortgage, and covenants restricting the usage of the property you own.
Ø  Falsely Impersonating An Owner:  Having ordinary, familiar or common names make it easier for someone to pretend to be the owner.  If the property you bought was sold previously by an impersonator there is risk of losing your rights to legally claim it.

Be thorough and consider the benefits of having an owner’s title insurance policy at the time you purchase a home, land or property.  Owner’s title insurance often provides coverage and protection for risks associated with your legal rights and title to the property you buy.  Be sure to get a quote and full proposal for title insurance including owner’s title insurance prior to settlement.  Consider the cost benefit and peace of mind the many covered risks a title insurance policy can offer you.  Ask questions and consult a properly licensed title insurance agent or attorney for more information specific to your transaction.  For a quote or information on an owners title insurance policy in Maryland contact Excalibur Title and Escrow, LLC or other licensed title insurance agency.