Once you close on your new home, a title professional will review the title to make certain that there are no problems, such as the previous owner’s failure to pay local or state taxes on the property or any previous construction on the property that may not have been paid yet. Even brand new homes may have issues, such as undefined boundaries or unpaid subcontractors. Publications state that more than a third of title searches reveal a problem! Although these issues are supposed to be caught before the title is transferred to you, some problems are missed. Furthermore, some sellers are very clever and know how to avoid being detected for fraud during the title search process. The top problems that property owners encounter related to their title are discussed below, highlighting the importance of purchasing title insurance during closing.
Forgery & Fraud
Forgers have been known to search public records for property owners whose primary residence is in another location or who spend extended periods of time out of town. These forgers then create a deed in the name of a fictional person and pose as that person, acting as seller of the property. Once the property is sold and the true owners of the land find out, then the unsuspecting buyers are the ones who pay the price. The true owners have legal claim to the property, and the unsuspecting buyers face immense financial loss. Title insurance will cover all legal fees of the buyers and will compensate them for any loss. Other situations of forgery and fraud happen as well, even when deeds have been notarized and investigated.
Unknown Heirs
There have also been many cases in which unknown sons and daughters of deceased property owners make themselves known after property has been divided and sold. The owner’s most recent spouse or partner may be unaware of children born to their spouse in a former marriage, but these children are still entitled to a share of the property. This can cause financial problems (not to mention the loss of a home!) to unaware home buyers who must turn over their title.
Challenged Ownership Claims
Sometimes an heir may make ownership claims due to ignorance of the deceased owner’s wishes or due to intentional trickery. Sometimes an owner’s will may remain hidden for a length of time, or one heir may have a copy of an updated will that another heir is not aware of. In any of these circumstances, the true heirs will challenge any misguided ownership claims, causing problems for new homebuyers who may be forced to give up their title. Title insurance also protects homebuyers in such situations.
Whether you need title insurance in Naples, Florida, or Juneau, Alaska, on a brand new home or old home, title insurance is always a good idea.
If you are looking for title insurance in Naples, Willis and Davidow can cover all your needs at an affordable rate. Browse the site willisdavidow.com for more information.
