Why is title insurance necessary if there has been a title search?

Title insurance is issued after an examination of the public records. But even the most thorough search cannot absolutely assure that no title defects are present, despite the knowledge and experience of professional title examiners. In addition to matters shown by public records, other title problems may exist that cannot be found in a search.

A few of such title problems that can cause loss of title or create an encumbrance on title are:

  • False impersonation of the true owner of the property
  • Forged deeds, releases of wills
  • Undisclosed or missing heirs
  • Instruments executed under invalid or expired power of attorney
  • Mistakes in recording legal documents
  • Misinterpretations of wills
  • Deeds by persons of unsound mind
  • Deeds by minors
  • Fraud

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