Title Insurance Horror Stories

by admin on December 2, 2009

in Real Estate

Get Title Insurance -  Things can go wrong!

Get Title Insurance – Things can go wrong!

Forgery

Ever sign your spouse’s name to a check?  Ever had a friend sign your name to something  just because it was easier?  Well, when you’re buying a home, forgery is not a pretty word, and some of the ugliest stories have happened between family members.  Title insurance professionals will tell you that forged deeds, loan documents and other claims against a property happen all the time.  A little anger, mixed with the thought that their crime will get “lost in the paperwork” make for hundreds of stories about relatives and friends who forge a document, and in so doing, create a situation where the ownership of the property is in question.  Those questions bring lawyers and lawsuits, and if they can’t be resolved, then the person riding to the rescue on the white horse is your Title Insurance Company.

Liens

Homeowners get work done on their homes.  Happens on a daily basis, and most of the time the work gets done, paid for, and all is well and good.  But you may know that sometimes work gets down, usually by a General Contractor, and when the contractor does not get paid, that contractor will file a lien against the property for the amount of the bill.  That lien is a recorded document (that means that the document is “recorded” by an official of the governmental body in the location of the property, and it is done so that an official record of the claim or transaction can be referred to later on).  It can happen, however, that the current homeowner does not disclose the lien, and that means that a subsequent buyer will still be responsible for payment to the contractor.  It is also quite common for the mechanic’s lien to never be filed properly at all by the contractor.  Enter Title Insurance to the rescue.  A title search will usually turn up these recorded claims, and they can be dealt with before the sale.  Again, buyer saved from a potential crisis down the road.

Competency

 If you’ve ever had an elderly parent, or suffered through an incapacitating injury to a loved one, then you will know that mental capacity can be diminished or destroyed, cutting that person off from being able to perform the usual tasks we take for granted.  So, let’s say that grandpa, who has been forgetting things and making multiple mistakes in the daily tasks he had once found easy, signs over the home to a neighbor “because they asked him to.”  This may not get recorded, and if it does, is it really a legally binding contract due to the fact that grandpa was of diminished capacity?  The answer is……..don’t know, but you’re going to have legal problems, and again, title insurance will insure against a negative outcome. 

More about title insurance…..

 Contact me if you want to find out specific answers to your questions. My team at California Title Company have all the answers, a willingness to help, and a desire to see that you don’t fall prey to any of the situations above.

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