Michael Edlen
Special To Brentwood News
A home title insurance policy is most frequently issued when a property is transferred to a new owner, and the seller generally pays for the premiums. Buyers may not give much thought to what issues or matters are covered by these policies, but there are a great many potential risks that are included. There are a few different types of policies, giving greater protection for slightly higher costs. All policies include various exclusions and limitations, and may be enhanced by different riders or endorsements. The following is a list of some of the major things that such policies can protect you from by coverage.
• Errors in tax records
• Incorrect legal descriptions
• Documents executed under false or expired powers of attorney
• Impersonation of the real property owner by someone else
• Documents notarized improperly
• Documents modified improperly
• Forged deeds, wills, and releases of mortgages
• Utility easements unidentified
• Issues regarding legal possession of the land
• Issues involving proper conveyance by partnerships or corporate entities
• Property transfers that violate public policy or recorded restrictions
• Issues involving marital status or divorced party rights
• Improperly recorded legal documents
• Improper delivery of documents transferring title interests
• Unknown and undisclosed heirs
• Undisclosed divorced spouses having legal interests in the property
• Misinterpretation of wills
• Probate issues
• False affidavits of death
• Claims by creditors of a decedent against property that was improperly conveyed by heirs
• Conveyances by an heir or joint surviving owner who tries to gain title unlawfully
• Execution of deeds or wills under duress
• Property transfers by people who lack legal capacity or are minors
• Federal estate and gift tax liens
• Special tax assessments
• Issues pertaining to encroachments
• Adverse possession
Typically the title insurance issuance process starts when a sale contract is agreed to and the escrow process has begun. The selected insurance provider initiates a preliminary title search and forwards the preliminary title report and underlying documents referenced in the report to the escrow officer who in turn delivers it to the buyer for their review and approval. These documents include any conditions, covenants and restrictions that affect the particular property, including easements and limitations on what can be done with and on the property. Once the buyer has approved the report, and escrow closes, the buyer is issued the policy of title insurance that covers the above and numerous other risks and issues that could affect clear title.
Michael Edlen has been involved with more than 1,300 transactions and sold nearly $2 billion of real estate since 1986. Contact him now for any questions regarding your property or any other real estate related issues, at 310.230.7373 or michael@michaeledlen.co.m
