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Feb, 2015
72 Ways You Could Lose Your Home
72 Ways You Could Lose Your Home!
Why you need Owner’s Title Insurance?
Owner’s Title insurance protects an owner against losses arising through defects in the title to real estate. The title insurance company agrees to provide the owner with a legal defense of the title if the validity of the title as insured is challenged. Your real estate purchase may be the largest single investment that you will ever make. It is essential that the title to the property be examined to determine whether there are any liens, encumbrances or other potential defects in the title, and that your title is insured against those defects and other defects that do not appear in the public records. A common misconception is that a review of the records at the Recorder of Deeds Office is sufficient protection. This is not the case. Title insurance provides protection above and beyond an examination of the public records.
The following is a list of 72 title defects that a title insurance policy will protect against:
1. Forged deeds, mortgages, satisfaction or releases.
2. Deeds by person who is insane or mentally incompetent.
3. Deeds by a minor (may be disavowed).
4. Deeds from corporation, unauthorized under corporate bylaws or given under falsified corporate resolutions.
5. Deeds from partnership, unauthorized under trust agreement.
6. Deeds from purported trustee, unauthorized under the trust agreement.
7. Deeds to or from purported trustee, unauthorized under the trust agreement.
8. Deeds from legal nonentity (styled for example, as a church, charity, or club).
9. To challenge as incompetent, unauthorized or defective under foreign law.
10. Claims resulting from the use of an “alias” or fictitious name style by processor in title.
11. Deed challenged as being given under fraud undue influence or duress.
12. Deed following non-judicial foreclosure, where requires procedure was not followed.
13. Deed affecting land in judicial proceedings (bankruptcy, receivership, probate, conservatorship, dissolution of marriage,) unauthorized by court.
14. Deed following judicial proceedings, subject to appeal or further court order.
15. Deed following judicial proceedings, where all necessary parties were not joined.
16. Lack of jurisdiction over persons or property in judicial proceedings.
17. Deeds signed by mistake (grantor did not know what was signed).
18. Deed executed under falsified power of attorney.
19. Deed executed under expired power of attorney (death, disability, or insanity of principle).
20. Deed apparently valid, but actually delivered after death or grantor to grantee, or without consent of grantor.
Why you need Owner’s Title Insurance?
21. Deed affecting property purported to be separate property of grantor which is fact community or jointly owned property.
22. Undisclosed divorce of one who conveys as sole heir of a deceased spouse.
23. Deed affecting property of deceased persons joining all heirs.
24. Deed following administration of estate of missing person, who later reappears.
25. Conveyance by heirs or survivor of a joint estate, who murdered the descendant.
26. Conveyances and proceedings affecting the rights of service members protected by the Soldier and Sailors Civil Relief Act.
27. Conveyance void as in violation of public policy (payment for contract to commit crime or conveyance made in restraint of trade).
28. Deed to land including “wetlands” subject to public trust (vesting title in government to protect public interest in navigation, commerce, fishing and recreation.)
29. Deed from government, entity, vulnerable to challenge as unauthorized or unlawful.
30. Ineffective release or prior satisfied mortgage due to acquisition not by bona fide purchaser (without notice of satisfaction).
31. Ineffective release of prior satisfaction mortgage due to bankruptcy of creditor price to recording of release (avoiding powers in bankruptcy).
32. Ineffective release of prior mortgage or lien, as given under mistake or misunderstanding.
33. Disputed release of prior mortgage or lien, as given under mistake or misunderstanding.
34. Ineffective subordination agreement, causing junior interest to be reinstated to priority.
35. Deed recorded, but not properly indexed so as to be located in the land records.
36. Undisclosed but recorded federal or state tax lien.
37. Undisclosed but recorded judgment or spousal / child support lien.
38. Undisclosed but recorded prior mortgage.
39. Undisclosed but recorded notice of pending lawsuit affecting land.
40. Undisclosed but recorded environmental lien.
41. Undisclosed but recorded option or right of first refusal, to purchase property.
42. Undisclosed but recorded convents or restrictions with (or without) rights of reverter.
43. Undisclosed but recorded easements (for access, utilities, drainage, airspace, views, benefitting neighboring land.
44. Undisclosed but recorded boundary, party wall to setback agreement.
45. Errors in tax records (mailing tax bill to wrong party resulting in tax sale, or crediting payment to wrong property).
46. Erroneous release of tax assessment liens, which are later reinstated to the tax rolls.
47. Erroneous reports furnished by tax officials (not binding local government).
48. Special Assessments which become liens upon passage of law or ordinance, but before recorded notice or commencement of improvements for which assessment is made.
49. Adverse claim of vendor’s liens.
50. Adverse claim of equitable liens.
Why you need Owner’s Title Insurance?
51. Ambiguous covenant or restriction in ancient documents.
52. Misinterpretation of wills, deeds, and other instruments.
53. Discovery of will of proposed intestate individual, after probate.
54. Discovery of late will after probate of first will.
55. Erroneous or inadequate legal description.
56. Deed to land without a right of access to a public street or road.
57. Deed to land with legal access subject to undisclosed but recorded conditions or restrictions.
58. Right of access wiped out by foreclosure in neighboring land.
59. Patent defects in recorded instruments (for example, failure to attach notarial acknowledgement or legal description).
60. Defective acknowledgement due to lack of authority of notary acknowledgement taken before commission or after expiration of commission.
61. Forged notarization or witness acknowledgement
62. Deed not properly recorded (wrong county, missing pages or other contents, or without required payment).
63. Deed from grantor who is claimed to have acquired title through fraud upon creditors of a prior owner.
64. Deed to be purchased from one who has previously sold or leases the same land to a third party under an unrecorded contract, where the third party is in possession of the premises.
65. Claimed prescriptive rights, not of record and not disclosed by survey.
66. Physical location of easement (underground pipe or sewer line) which does not conform with easement of record.
67. Deed to land with improvements encroaching upon another land.
68. Incorrect survey (misstating location, dimensions, area, easements or improvements upon land).
69. “Mechanics liens” claims (securing payment of contractors and material supplies for improvements) which may attach without recorded notice.
70. Federal estate or state inheritance tax liens (may attach without recorded notice).
71. Preexisting violation of zoning ordinances.
72. Preexisting violation of conditions, covenants, and restrictions affecting the land.
Your Lender’s Title Insurance Policy only covers them not you!!!
Call 360 American Title Services today to find out how you can
protect your most valuable investment! (859) 344-0200