FIFTEEN REASONS WHY ALL REAL ESTATE TITLES SHOULD BE INSURED

 

1.         A fire destroys only the house and improvements. The ground is left. A defective title may take away not only the house but the land on which it stands. Title insurance protects the buyer against such loss.

2.         A deed or a mortgage in the chain of title may be a forgery.

3.         A deed or a mortgage may have been signed by a person under age.

4.         A deed or a mortgage may have been made by an insane person or one otherwise incompetent.

5.         A deed or a mortgage may have been made under a power of attorney after the death of the principal and would, therefore, be void.

6.         A deed or a mortgage may have been made by a person other than the owner, but with the same name as the owner.

7.         The testator of a will might have had a child born after the execution of the will, a fact that would entitle the child to claim his or her share of the property.

8.         The testator may not have revoked a will after its execution.

9.         A conveyance by heirs-at-law of a person supposed to have died without a valid  will may be defeated by subsequent discovery and probate of a will.

10.      An heir or other person presumed dead may appear and recover the property or an investment therein.

11.      A Judgment or levy upon which the title is dependent may be void or voidable on account of some defect in the proceeding.

12.       Title insurance helps speed negotiations when the property is ready for
            resale.

13.       If an insured title is ever defeated, the amount of the loss is reimbursed by the title insurance company.

14.       Title insurance means free defense in court.

15.      Only title insurance protects against claims due to marital status and validity of divorces such as a supposedly non-existent or divorced "wife" or "husband".