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5 Common Title Problems and How Title Insurance Can Help

Posted by Andrew Senerchia | Jul 13, 2023 | 0 Comments

Title problems can arise during the process of buying or selling a property. These issues can create legal and financial complications for the parties involved. Title insurance is a type of insurance that protects property owners and lenders from potential losses or damages due to title problems. Here are five common title problems and how title insurance can help:

  1. Unknown Liens or Encumbrances: Sometimes, there may be liens or encumbrances on a property that the buyer or seller is unaware of. These could include unpaid taxes, mortgages, or other outstanding debts. Title insurance can help by providing coverage for any financial losses or legal disputes that may arise as a result of these liens or encumbrances.

  2. Errors or Omissions in Public Records: Mistakes can occur when public records are created or updated. These errors or omissions can lead to problems with the property's title, such as incorrect ownership information or missing legal descriptions. Title insurance can protect against financial losses resulting from these inaccuracies and provide legal defense if a dispute arises.

  3. Forged or Fraudulent Documents: In some cases, individuals may attempt to forge or fraudulently alter property documents, such as deeds or mortgages, to transfer ownership illegally. Title insurance can help by covering losses incurred due to these fraudulent activities, including legal fees for defending against such claims.

  4. Boundary and Survey Disputes: Boundary disputes can arise when there are disagreements between neighboring property owners regarding property lines and boundaries. Additionally, survey errors or discrepancies can create confusion or conflicts. Title insurance can provide coverage and legal assistance in resolving these boundary and survey disputes, helping protect the property owner's interests.

  5. Undisclosed Heirs or Missing Wills: When a property owner passes away without a proper will or if there are undisclosed heirs, the property's ownership can become complicated. Title insurance can help by providing coverage in case an unknown heir or beneficiary comes forward with a claim to the property, ensuring the rightful owner's interests are protected.

In summary, title insurance serves as a safeguard against various title problems that can arise during real estate transactions. It offers financial protection and legal assistance to property owners and lenders, mitigating potential risks and ensuring a smooth transfer of ownership.

If you are interested in learning more about working with Dimension National Title on purchasing your home , reach our offices today! 

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About the Author

Andrew Senerchia

Andrew Senerchia is an accomplished attorney at Senerchia & Senerchia P.C., his family's law firm, and President of Dimension National Title. He cites his parents as his greatest professional influences, instilling in him a core value of simply doing his job to the utmost ability.

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