You have just closed on your new home. You
have signed your name for what seems like hours. With deed and keys in hand, you’re off to
move in and get settled knowing that you are protected and safe in your new home.
You may think that everything is just fine, but what if the sellers long lost
Uncle John comes knocking on the door. He says he has a deed to the property or
an unrecorded will granting him ownership rights.
This is why you purchased title insurance.
There are many common title issues that could arise after the closing. These
are 4 of the most common issues and how your title insurance will protect you.
·
Undiscovered encumbrances occur
when a third party holds a claim to part of all of your property. This could be an unrecorded lien because the
seller has not paid a contractor for work done, a deed restriction or covenant
that limits the type of shed you can build, or a license granted to a neighbor
to store his fishing boat.
·
There could be an error in the
public records. While we think we are perfect, we are human and we make
mistakes. There could be a clerical or filing error that affects the deed.
There could be a mistake made in the survey, or an easement that is missed or
forgotten.
·
You may own your home and the
land around it, but there could be an unknown easement that would restrict or
prohibit you from using the property any way you would like to. The utility
company or another property owner might have the ability to enter or use the property,
right where you would like to build that shed.
·
The property may be new to you,
and if it is not brand new, then it could have had several owners. No everyone
is a diligent accountant or bill payer. A lien for the debts of a previous
seller could be placed on the property after you own it. The debt may not be yours, but it will be
your problem. This is a common problem with distressed properties.
Title issues can cause great financial
hardship, and limit the way you can use your new property. Title claims can be
very expensive and can even affect the value of your new home. With title
insurance you can rest assured that you would not have to deal with these
concerns on your own.
The good news is that in the large
stack of papers you received at closing, there is an Owner’s title policy,
which will cover any title issues that arise after closing. The title company
will help defend and pay claims on your title, so you wont have to go it
alone. If you have any questions about
title insurance, feel free to contact me directly at 215-519-1399.
