Friday, November 2, 2007

Top Reasons to Get Title Insurance

70 Reasons to Get Title Insurance - examples of what standard coverage owners title insurance covers - First American Title Insurance Company







You don't want problems from prior ownerships to interfere with your rights
to your property. And you don't want to pay the potentially ruinous cost
of defending your property rights in court.

A title insurance policy is your best protection against potential title
defects, which can remain hidden despite the most thorough search of public
records and the most careful escrow or closing.

For a one-time premium First American agrees to reimburse you for loss
due to defects existing prior to the issue date of your policy, up to the
policy amount. And, should it be needed, the policy also provides for the
cost of legal defense of your title.The standard coverage policy protects
you against such potential defects as:











  1. Forged deeds, mortgages, satisfactions or releases.
  2. Deed by person who is insane or mentally incompetent.
  3. Deed by minor (may be disavowed).
  4. Deed from corporation, unauthorized under corporate bylaws or given
    under falsified corporate resolution.
  5. Deed from partnership, unauthorized under partnership

    agreement.
  6. Deed from purported trustee, unauthorized under trust agreement.
  7. Deed to or from a "corporation" before incorporation, or
    after loss of corporate charter.
  8. Deed from a legal non-entity (styled, for example, as a

    church, charity or club).
  9. Deed by person in a foreign country, vulnerable to challenge as incompetent,
    unauthorized or defective under foreign laws.
  10. Claims resulting from use of "alias" or fictitious namestyle by a predecessor in title.







  1. Deed challenged as being given under fraud, undue influence

    or duress.
  2. Deed following non-judicial foreclosure, where required procedure was
    not followed.
  3. Deed affecting land in judicial proceedings (bankruptcy,

    receivership, probate, conservatorship, dissolution of

    marriage), unauthorized by court.
  4. Deed following judicial proceedings, subject to appeal or

    further court order.
  5. Deed following judicial proceedings, where all necessary

    parties were not joined.
  6. Lack of jurisdiction over persons or property in judicial

    proceedings.
  7. Deed signed by mistake (grantor did not know what was

    signed).
  8. Deed executed under falsified power of attorney.
  9. Deed executed under expired power or attorney (death, disability or
    insanity of principal).
  10. Deed apparently valid, but actually delivered after death of

    grantor or grantee, or without consent of grantor.
  11. Deed affecting property purported to be separate property of

    grantor, which is in fact community or jointly-owned

    property.
  12. Undisclosed divorce of one who conveys as sole heir of a

    deceased former spouse.
  13. Deed affecting property of deceased person, not joining all

    heirs.
  14. Deed following administration of estate of missing person,

    who later re-appears.
  15. Conveyance by heir or survivor of a joint estate, who

    murdered the decedent.
  16. Conveyances and proceedings affecting rights of service-member protected
    by the Soldiers and Sailors Civil Relief Act.
  17. Conveyance void as in violation of public policy (payment of gambling
    debt, payment for contract to commit crime, or conveyance made in restraint
    of trade).










  1. Deed to land including "wetlands" subject to public trust

    (vesting title in government to protect public interest in navigation,
    commerce, fishing and recreation).
  2. Deed from government entity, vulnerable to challenge as unauthorized
    or unlawful.
  3. Ineffective release of prior satisfied mortgage due to acquisition
    of note by bona fide purchaser (without notice of satisfaction).
  4. Ineffective release of prior satisfied mortgage due to bankruptcy of
    creditor prior to recording of release (avoiding powers in bankruptcy).
  5. Ineffective release of prior mortgage of lien, as fraudulently obtained
    by predecessor in title.
  6. Disputed release of prior mortgage or lien, as given under mistake
    or misunderstanding.
  7. Ineffective subordination agreement, causing junior interest to be
    reinstated to priority.
  8. Deed recorded, but not properly indexed so as to be locatable in the
    land records.
  9. Undisclosed but recorded federal or state tax lien.
  10. Undisclosed but recorded judgment or spousal/child support lien.
  11. Undisclosed but recorded prior mortgage.
  12. Undisclosed but recorded notice of pending lawsuit affecting land.
  13. Undisclosed but recorded environmental lien.
  14. Undisclosed but recorded option, or right of first refusal, to purchase
    property.
  15. Undisclosed but recorded covenants or restrictions, with (or without)
    rights of reverter.
  16. Undisclosed but recorded easements (for access, utilities, drainage,
    airspace, views) benefiting neighboring land.
  17. Undisclosed but recorded boundary, party wall or setback agreements.









  1. Errors in tax records (mailing tax bill to wrong party resulting in
    tax sale, or crediting payment to wrong property).
  2. Erroneous release of tax or assessment liens, which are later reinstated
    to the tax rolls.
  3. Erroneous reports furnished by tax officials (not binding local government).
  4. Special assessments which become liens upon passage of a law or ordinance,
    but before recorded notice or commencement of improvements for which assessment
    is made.
  5. Adverse claim of vendor's lien.
  6. Adverse claim of equitable lien.
  7. Ambiguous covenants or restrictions in ancient documents.
  8. Misinterpretation of wills, deeds and other instruments.
  9. Discovery of will of supposed intestate individual, after probate.
  10. Discovery of later will after probate of first will.
  11. Erroneous or inadequate legal descriptions.
  12. Deed to land without a right of access to a public street or road.
  13. Deed to land with legal access subject to undisclosed but recorded
    conditions or restrictions.
  14. Right of access wiped out by foreclosure on neighboring land.
  15. Patent defects in recorded instruments (for example, failure to attach
    notarial acknowledgment or a legal description).
  16. Defective acknowledgment due to lack of authority of notary (acknowledgment
    taken before commission or after expiration of commission).
  17. Forged notarization or witness acknowledgment.
  18. Deed not properly recorded (wrong county, missing pages or other contents,
    or without required payment).
  19. Deed from grantor who is claimed to have acquired title through fraud
    upon creditors of a prior owner.













An extended coverage policy may be requested to protect against such
additional defects as:

  1. Deed to a purchaser from one who has previously sold or leased the
    same land to a third party under an unrecorded contract, where the third
    party is in possession of the premises.
  2. Claimed prescriptive rights, not of record and not disclosed by survey.

  3. Physical location of easement (underground pipe or sewer line) which
    does not conform with easement of record.
  4. Deed to land with improvements encroaching upon land of another.
  5. Incorrect survey (misstating location, dimensions, area, easements
    or improvements upon land).
  6. "Mechanics' lien" claims (securing payment of contractors
    and material suppliers for improvements) which may attach without recorded
    notice.
  7. Federal estate or state inheritance tax liens (may attach without recorded
    notice).
  8. Pre-existing violation of subdivision mapping laws.
  9. Pre-existing violation of zoning ordinances.
  10. Pre-existing violation of conditions, covenants and restrictions affecting
    the land.


The EAGLE Policy is our newest and most comprehensive coverage. Subject
to availability in your area, the Eagle Policy covers all of the risks listed
above, plus these:









  1. Post-policy forgery against the insured interest.
  2. Forced removal of residential improvements due to lack of an appropriate
    building permit (subject to deductible).
  3. Post-policy construction of improvements by a neighbor onto insured
    land.
  4. Damage to residential structures from use of the surface of insured
    land for extraction or development of minerals.





We're First American: Financially strong and reputation-proud. Let us help you avoid title problems.


(For some true "horror stories," taken from actual First American claim files, visit the "Claims Chronicles" reference section of our website.)





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