Possible title defects include:

• Errors in public records.
• Unknown Liens.
• Illegal Records.
• Missing heirs.
• Forgeries.
• Undiscovered encumbrances.
• Unknown easements.
• Bounders/ Survey Dispute.

Does title insurance protect against adverse possession?

Remember that a title insurance policy insures title to a specifically described parcel of land. So in effect title insurance protects an insured against claims of adverse possession (not in support of claims of adverse possession).

What makes a deed defective?

A missing deed or one that was destroyed may be a contributing factor in rendering a title defective. The deed may also be inaccurate or insufficient in its description of the property. There may also be stipulations that can affect ownership of the property such as a piece of property that’s under an estate contract.

Can a title insurance company not issue a title policy?

If a title insurance company will not issue a policy on a specific type of deed, for example, it may not matter whether the deed is otherwise valid under state law. Before issuing a title policy, title insurance companies will search the public records to verify that all prior conveyances of the property are in order.

What is the role of Title Insurance in warranty deeds?

The role of warranty deeds has changed with the widespread availability of title insurance. Title insurance shifts risks from the transferor and transferee to the title insurance company. If there is a problem with title, the transferee can file a claim against the title insurance company instead of suing the former owner.

What happens if title company fails to identify title defect?

If the title company fails to identify the issue and a title defect is later discovered, the title insurance company is responsible. The buyer need not rely solely on the financial status of the seller and, unless the seller gave a warranty of title, the seller need not worry about future legal liability.

What to do if your deed has not been recorded?

If your deed has not been recorded, inform your attorney or title insurance company immediately. Request that it take action to have your deed recorded as soon as possible. You should also inform your mortgage lender, as it might be able to assist you with recording your deed. It is relatively easy to confirm that your deed has been recorded.