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What defects or risks does title
insurance cover?
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There are numerous defects or problems that can arise
to cause an attack or loss of the title to your 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:
- Forged deeds, releases, wills or other legal documents
- Failure of spouses to join in conveyances
- Undisclosed or missing heirs
- Deeds from minors, aliens or persons of unsound mind
- Errors in indexing of public records
- Liens for unpaid taxes including estate, inheritance, income
or gift taxes
- Erroneous reports furnished by tax officials
- Mistakes in recording legal documents
- Deeds from defunct corporations
- Unprobated wills
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