Importance Of Holding a Title Deed Insurance

Importance Of Holding a Title Deed Insurance

Importance Of Holding a Title Deed Insurance

Title deed insurance is a policy that covers third-party claims on a property that don’t show up in the initial title search and arise after a real estate closing.

A third party is someone other than the property’s owner, such as a construction company that didn’t get paid for its work on the home under a previous owner.
A title deed insurance policy covers underlying issues with a property’s title that you might have missed before you bought the home.
Amcco Orchard title deed
An owner’s title insurance policy can cover the costs of paying off a previously undiscovered lien, which is a legal right or claim on someone’s property or assets until they pay a debt or fulfill an obligation.

The person claiming the property is the one referred to as a lien) or defending against a lawsuit filed against you by someone claiming a right to the property.
It can also provide a cash settlement to a new owner who unwittingly purchases a property with a forged deed from a fraudulent seller who does not actually own the home.


Furthermore, owner’s title insurance protects your ability to sell the home one day if a problem turns up during a later title search.

Below are other things that an owner’s title policy can safeguard you from:

  • Property survey errors

These are mistakes made when measuring or mapping the boundaries, location, or features of a piece of land. They can cause legal, financial, or practical problems for property owners or buyers.

  • Boundary disputes

These are disagreements over the location or demarcation of a border between two or more countries, states, or other political or geographic entities.

  • Errors on the property deed

This is a mistake in the legal description of the property that can affect the chain of title.

Others include:

  1. Building code violations by a previous owner

  2. Conflicting wills

  3. Claims by an ex-spouse who didn’t sign off on the sale

  4. Forged documents

  5. Liens from contractors, taxing entities, or previous lenders

  6. Encroachments

  7. Improperly recorded documents