Common Reasons For Title Insurance Claims

Dated: 05/28/2015

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Image titleCommon Reasons For Title Insurance Claims

We are often asked whether or not Owner's Title Insurance is necessary when purchasing a home. It's a large expense and many people might rather not spend that amount of money on something they may never need. Well, Title Insurance is one of those items that you buy and hope you never need. It's worth in my opinion, I wouldn't buy a home without it. Here's a few of the more common reason there might be a claim filed against a policy.

Example of some of the more common reasons for claims against a Real Estate title insurance policy are as follows:

  •       Impersonating fraudulently the true owner of the property

  • Forgery of the deed, releases, or wills

  • Real Estate fraud

  • Undisclosed or missing heirs to the property

  • Any Instruments executed under invalid or expired power of attorney

  • Mistakes when legal documents were recorded

  • Improperly recorded PID (Public Improvement District) fees

  • Deeds by someone not of sound mind

  • Deeds by a minor

  • Misinterpretations of wills

  • Deeds with misrepresentation of marital status

  • Liens for unpaid estate, income, inheritance, or gift taxes

So when you buy your next home, if the Seller won't pay for the Owner's Title Policy, it might be worth it for you to purchase it anyway. And hopefully you'll never need it. 

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Lisa Birdsong

Top 1% of Texas Real Estate Teams; McSam Realtor of the Year, 2016; Certified Residential Specialist, CRS D Best Realtor, 2016, 2017 Castle Hills Realtor Advisory Board, 2016; Windsong Ranch Real....

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