Why is Title Insurance important? Here are 10 common title issues and why you must have it!

REAL ESTATE - Title Insurance - Langdon Title - www.langdontitle.com

Why is Title Insurance Important? Why you must have it!

Have you ever wondered why you need title insurance? No matter if you are buying or refinancing your first home or a multi -billion dollar commercial portfolio the simple fact is 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 ownership 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/her property may fall to his/her heirs, or those named within his/her 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 property may be in jeopardy.

6. Undiscovered Encumbrances

When it comes to owning property, 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 property 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 property, 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 property 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 property, make sure you're protecting that investment with title insurance.

Call Langdon Title today - Nationally Experienced, Professional and Trusted! Unrivaled in getting you to the finish line and a stress free closing! Call or email me jfells@langdontitle.com / 212-686-6650

Jeff Fells is a top producing title executive at Langdon Title. Jeff’s role at Langdon is multi-faceted and includes managing and overseeing all aspects of Langdon Title’s business development and marketing initiatives. Jeff’s clients include owners, operators, developers, investors, private equity groups, family offices, and attorneys that specialize in commercial and high-end residential transactions in New York and nationally. A seasoned professional, Fells passion for developing relationships, his attention to detail and always being accessible no matter the size or scope of the deal makes him a trusted adviser to his clients. Fells, provides great value by listening to their needs, supporting their business goals and getting the results they both demand and deserve. Jeff also loves adding value by putting like minded people together and paying it forward. Bottom line, his strong integrity and reputation are what separates him from his competitors.

Credit First American