Reasons for Title Insurance

When you buy a home, you want to be certain it's safely yours. But even the most diligent search of the public records could fail to disclose a number of title defects.

Things such as a forged will or deed. Or a title transfer by someone under age. Or a married person conveying real estate without his or her spouse. Or fraudulent impersonations. Secret marriages. Undisclosed heirs. Invalid divorces. False affidavits. These are just a few of the problems that can suddenly surface. Without the protection of title insurance, you'll be in jeopardy of losing your investment.

Some Horror Stories

The Walking Corpse.

The homeowner was a widow with seven sons. One of her offspring, the captain of a fishing vessel, had not been heard from for many years. Presumed lost at sea, he was declared legally dead.

When the widow passed away, her six remaining sons inherited her home. It was an attractive house, and they put it on the market at a modest price to facilitate settlement of the estate. Recognizing a bargain, the Montgomerys bought the property.

They were delighted with their new home - until the long lost sea captain returned from the dead.

It turned out the widow's missing son had decided years ago to start a new life elsewhere. When the captain eventually returned and found the house had been sold, he promptly filed a claim against the Montgomerys for his rightful share of the property.

News Travels Slowly.

A lady of means placed her home in the country up for sale. Before embarking on a cruise, she gave her lawyer power of attorney on the property.

Weeks later, the Harper family decided to buy the country place. Its fertile land and picturesque setting were ideal for farming. Exercising his authority, the attorney signed the deed and sold the property to the Harpers.

Everything appeared proper, except for one hitch: The woman died in a distant part of the world before the attorney signed over the property. When the lady's heirs discovered that the land had been sold after her death, they claimed the deed was invalid and demanded their right to the property.