• Real Estate Professionals
  • Service Providers
First American Home Warranty
  • Request Service
  • Sign In
  • 888.875.0533
  • Get a Quote
  • Menu
Request Service Sign In

Homeowner

  • Overview
  • Why Buy a Home Warranty
  • What's Covered
  • How to Request Service
  • Home Warranty Reviews
  • Get a Quote
  • Home Appliance Warranty Coverage
  • Budget Protection
  • What is a Home Warranty?

Service Provider

  • Overview
  • Why Join Our Team
  • Home Warranty Network 101
  • Service Provider Testimonials
  • Service Provider Application

Real Estate Professional

  • Overview
  • Why Choose First American
  • Sample Coverage
  • Locate Your Area Manager
  • CRES Home Warranty
  • Real Estate Testimonials
  • Marketing Materials

Resources

  • About Us
  • Blog
  • Contact Us
  • Case Studies and Testimonials
  • Frequently Asked Questions
  • Home Maintenance Tips
Menu

Sign In / Register

  • Email Address is required.
  • Password is required.
Register Forgot Password
Request Service Sign In
  • Blog Home
  • Budget Smart
  • Home Care
  • Home Maintenance
  • Home Warranty
  • Homeowner Tips
  • Lifestyle
  • Real Estate
  • Archives
Why is Title Insurance Important?
Real Estate

Why is Title Insurance Important?

Have you ever wondered why you need title insurance? Your home may be new to you, but every property has a history. A thorough title search can help uncover any title defects tied to your property. And, subject to the terms of the policy, your title insurance provides protection for you from title problems that may become known after you close your transaction.

Here are 10 common title issues:

1. Errors in Public Records

To err is human, but when it affects your homeownership rights, those mistakes can be devastating. Clerical or filing errors could affect the deed or survey of your property and cause undo financial strain in order to resolve them.

2. Unknown Liens

Prior owners of your property may not have been meticulous bookkeepers – or bill payers. And even though the former debt is not your own, banks or other financing companies can place liens on your property for unpaid debts even after you have closed on the sale. This is an especially worrisome issue with distressed properties.

3. Illegal Deeds

While the chain of title on your property may appear perfectly sound, it's possible that a prior deed was made by an undocumented immigrant, a minor, a person of unsound mind, or one who is reported single but in actuality married. These instances may affect the enforceability of prior deeds, affecting prior (and possibly present) ownership.

4. Missing Heirs

When a person dies, the ownership of his home may fall to his heirs, or those namedwithin his will. However, those heirs are sometimes missing or unknown at the time of death. Other times, family members may contest the will for their own property rights. These scenarios – which can happen long after you have purchased the property – could affect your rights to the property.

5. Forgeries

Unfortunately, we don't live in a completely honest world. Sometimes forged or fabricated documents that affect property ownership are filed within public records, obscuring the rightful ownership of the property. Once these forgeries come to light, your rights to your home may be in jeopardy.

6. Undiscovered Encumbrances

When it comes to owning a home, three can be a crowd. At the time of purchase, you may not know that a third party holds a claim to all or part of your property – due to a former mortgage or lien, or non-financial claims, like restrictions or covenants limiting the use of your property.

7. Unknown Easements

You may own your new home and its surrounding land, but an unknown easement may prohibit you from using it as you'd like, or could allow government agencies, businesses, or other parties to access all or portions of your property. While usually non-financial issues, easements can still affect your right to enjoy your property.

8. Boundary/Survey Disputes

You may have seen several surveys of your property prior to purchasing, however, other surveys may exist that show differing boundaries. Therefore, a neighbor or other party may be able to claim ownership to a portion of your property.

9. Undiscovered Will

When a property owner dies with no apparent will or heir, the state may sell his or her assets, including the home. When you purchase such a home, you assume your rights as owner. However, even years later, the deceased owner's will may come to light and your rights to the property may be seriously jeopardized.

10. False Impersonation of Previous Owner

Common and similar names can make it possible to falsely "impersonate" a property owner. If you purchase a home that was once sold by a false owner, you can risk losing your legal claim to the property.

Play it Safe

These and other issues are often covered by an owner's policy of title insurance. When you buy a home, make sure you're protecting that investment with title insurance.


Video and original article: ©2005-2019 First American Financial Corporation and/or its affiliates. All rights reserved. First American Title Insurance Company makes no express or implied warranty respecting the information presented and assumes no responsibility for errors or omissions. First American, the eagle logo, and First American Title are registered trademarks or trademarks of First American Financial Corporation and/or its affiliates.


If you have been researching title insurance to better understand how it fits in the home buying or selling process, you may be interested in these helpful articles:

What is Title Insurance and Why You Need It

What Can Homebuyers Expect in the Closing Process?

How You Benefit from a Home Warranty

This article is about...
  • Title insurance
  • Buying a home
  • Selling a home
  • Checklists
Buying a First Home? How to Know When You're Ready
Real Estate

Buying a First Home? How to Know When You're Ready

Is Winter the Best Time to Buy a House?
Real Estate

Is Winter the Best Time to Buy a House?

Buying a House? 10 Steps for New Home Buyers
Real Estate

Buying a House? 10 Steps for New Home Buyers

Popular Articles

water heater temperature
What's the Best Temperature for Your Water Heater?
Finding a home's shutoffs
Where to Find Your Home's Shutoff Valves
Ceiling fan direction
Which Way Should Your Ceiling Fan Turn?
When to change water filter
How Often Should You Change Water Filters?
Home warranty repair
What is a Home Warranty?
Change dishwasher filter
Does Your Dishwasher Have a Filter?
garbage disposal tips
What Can Safely Go in the Garbage Disposal?
Grout cleaning guidance
Guide to Care, Cleaning, and Maintenance of Grout
Changing air filter
How to Change the Air Filter in Your HVAC System
Converting your garage
Garage Conversion Ideas

This website uses cookies and similar technologies to manage your sessions, manage content, and improve your website experience. To learn more about these technologies, your options, and about other categories of personal information we collect through this website and how we may use it, please see our privacy policy. This notice is effective for your use of this website for the next 14 days.

  • Home
  • Blog
  • Contact
  • Accessibility
  • Terms of Use
  • Privacy
  • Sitemap
© 2023 First American Home Warranty Corporation and its licensed subsidiaries. All rights reserved.