8315 W. 10th Street, Indianapolis IN 46234. 
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9 Common But Hidden Title Problems Risks

October 6, 2023

Fraud, liens, judgments, forgery, unpaid taxes, clerical errors in public records, mental incompetence, and faulty deeds -- are some of the most common problems protected by title insurance that could compromise your ownership rights to the property.

This is where title insurance comes in; the title insurance will provide legal protection if a claim is made by the terms of the policy.

Title insurance fees may differ but are usually reasonable because it is a one-time expense during closing.

Common Title Insurance Protection Hidden Risks:

False Impersonation

If you buy a home that was previously sold by a person "falsely impersonating" a true owner, you risk losing your legal claim to the property. 

Forged Deeds, Releases, And Other Documents

Forged or fraudulent property ownership paperwork is frequently registered in public records, masking the genuine owner of the property. Your rights to your home may be threatened if these forgeries are uncovered.

Illegal Deeds 

While the chain of title on your property may appear to be flawless, a prior deed may have been generated by a minor, an undocumented immigrant, a person of unsound mind, or someone who claims to be single but is married. These occurrences may affect the enforceability of previous deeds, affecting prior (and presumably present) ownership.

Mistakes In Public Records

Mistakes or discrepancies in publicly filed records can affect your home ownership rights, and without title insurance, it can cause financial strain to fix them.

Unknown Liens

The previous owners of your new home may not have been careful bill payers or bookkeepers, which might result in debts. Now, even if you don't own or have anything to do with their previous debts, banks or other financial institutions might place liens against the property even after closing. 

Missing Heirs 

When a previous homeowner dies, anyone mentioned in his will, such as their heirs, may inherit the home. However, those heirs may occasionally be missing at the time of their death or other family members fighting for the will to protect their property rights may affect the rights of your property.

Unknown Encumbrances

You may be unaware at the time of purchase that a third party has a claim to all or part of your property due to a previous mortgage or debt, or non-financial claims, such as restrictions or covenants limiting your land's use, which could affect your ownership.

house deed with pen

Unknown Easements

An undisclosed easement may restrict your ability to use the property as you like or grant government agencies, businesses, or other people access to all or portions of your new home or land despite owning it. While it won't usually cause a financial problem, easements might affect your right to use your property. 

Disputes Over Boundaries And Surveys

Before purchasing, you may have seen numerous surveys of your property; however, other surveys with different borders may exist. As a result, another party may be able to claim ownership of a section of your land.

Protect Your Rights

Purchasing title insurance might sound like another expense; however, if you think of the benefits it can give you in case of an unwanted situation, you might realize that it's more of an investment. Not only will it help you financially, but it will also give you the peace of mind you need while you enjoy your new property.Do you have more questions about title insurance? Indy Legal is here to help! Send us a message here or leave a comment below!

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8315 W. 10th Street
Indianapolis IN 46234

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