Title Insurance - Do I need it? Why?

What is a title?

Simply stated, the title to a piece of property is the evidence that the owner is in lawful possession of that property. 

What is title insurance?

Title insurance protects real estate owners and lenders against any property loss or damage they might experience because of liens, encumbrances or defects in the title to the property. Each title insurance policy is subject to specific terms, conditions and exclusions.

What Does Title Insurance Protect You From? A lot.

There are few things in life more important than protecting your home. The following matters are examples of why you need a Stewart Title insurance policy. Remember that the best title examination or search cannot protect your equity and home from matters not appearing in the public records. However, a Stewart Title policy* can protect you from:

• Documents executed under false, revoked or expired powers of attorney
• False impersonation of the true land owner
• Undisclosed heirs
• Improperly recorded legal documents
• Prescriptive rights in another not appearing of record and not disclosed by survey
• Failure to include necessary parties to certain judicial proceedings
• Defective acknowledgements due to improper or expired notarization
• Corporate franchise taxes as liens on corporate real estate assets
• Gaps in the chain of title
• Mistakes and omissions resulting in improper abstracting
• Forged deeds, mortgages, wills, releases of mortgages and other instruments
• Deeds by minors
• Deeds which appear absolute, but which are held to be equitable mortgages
• Conveyances by an heir, devisee or survivor of a joint estate who attempts to attain title by ill-gotten means
• Inadequate legal descriptions
• Conveyances by undisclosed divorced spouses
• Duress in execution of wills, deeds and instruments conveying or establishing title
• Issues involving delivery of conveyancing instruments
• Deeds and wills by persons lacking legal capacity
• State inheritance and gift tax liens
• Errors in tax records
• Demolition and substandard building liens
• Administration of estates and probate of wills of missing persons who are presumed deceased
• Issues of rightful possession of the land
• Issues concerning the rightful conveyances by corporate entities
• Deeds and mortgages by foreigners who may lack legal capacity to hold title
• Legal capacity of foreign personal representatives and trustees
• Issues involving improper marital status
• Improper modification of documents
• Rights of divorced parties
• Conveyances in violation of public policy
• Misinterpretation of wills and ancillary instruments
• Deeds by persons falsely representing their marital status
• Claims by creditors of decedent against property improperly conveyed by heirs and devisees
• Issues concerning unlawful takings by eminent domain or condemnation
• Special tax assessments
• Real estate homestead exceptions
• Forfeitures of real property due to criminal acts
• Issues concerning adoption of children
• Conveyances and proceedings affecting rights of military personnel protected by the Soldiers’ and Sailors’ Civil Relief Act
• Issues concerning interests noted in financial statements filed under Uniform Commercial Code
• Interests arising by deeds of fictitious parties
• Adverse possession
• Lack of jurisdiction or competency of persons in judicial proceedings
• Community property issues
• Utility easements
• False affidavits of death or heirship
• Intestate estates
• Probate matters
• Federal estate and gift tax liens

The above information was taken from Stewart Title Company.  Visit their website at stewart.com
*Subject to certain limitations set forth in the policy.
Visit stewart.com for more information about title insurance and to find out why Stewart Title is the right title company for you.