Most buyers and sellers have no idea what title insurance covers and what to watch for in a preliminary title insurance. Amerititle has a great site to explain Title services and insurance. Below is what it covers, but do check out their site and see what other items you should be aware of.
- False representation of the true owner of the property
- Forged deeds, releases or wills
- Instruments executed under invalid or expired power of attorney
- Undisclosed or missing heirs
- Mistakes in recording legal documents
- Misinterpretation of wills
- Deeds by persons of unsound mind
- Deeds by minors
- Deeds by persons supposedly single but in fact married
- Liens for unpaid estate, inheritance, income or gift taxes
- Fraud
Obviously if you do not have a title company many of these issues may never be known unless you use a title company. Central Oregon has several title companies, but you should always use a local title and escrow company. A local company has access to the local records which are necessary to do the job efficiently.
Great information Thesa! We get caught up in the nuance so much that sometimes we forget to cover the basics, like title insurance. I would like to re-post excerpts on our blog if that’s ok
We’ve had a few issues involving undisclosed / unrecorded easements around Colorado. The title company covered them. Ended up not being a big deal, but the peace of mind was worth every penny.