Q: What Are the risks of not having title insurance on your home or real property?
A: There are numerous defects or problems that can arise to cause an attack to or loss of the title to your home or property. Some of these include problems not disclosed by the most careful search of the public records (the title search). Hidden risks can cause a total loss of your investment or heavy legal expenses in the defense of an attack on the title. Some title problems may show up months or years after the original purchase of the property. The following are examples of matters that can cause loss of title or an expensive lawsuit:
1. Forged deeds, releases, wills, or other legal documents
2. Failure of spouses to join in conveyances
3. Undisclosed or missing heirs
4. Deeds from minors, aliens, or persons of unsound mind
5. Errors in indexing of public records
6. Liens for unpaid taxes including estate, inheritance, income, or gift taxes
7. Erroneous reports furnished by tax officials
8. Mistakes in recording legal documents
9. Deeds from defunct corporations
10. Unprobated wills
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