Here are some of the most common

HIDDEN RISKS

that can cause a loss of title or create an encumbrance on title:

• Forged deeds, releases, wills or other legal documents
• Failure of spouses to join in conveyances
• Undisclosed or missing heirs
• Deeds from minors, aliens or persons of unsound mind
• Errors in indexing of public records
• Liens for unpaid taxes including estate, inheritance, income or gift taxes
• Erroneous reports furnished by tax officials
• Mistakes in recording legal documents
• Deeds from defunct corporations
• Unprobated wills

What Does Title Insurance Protect you against?

• Liens from unpaid estate, inheritance, income, and gift taxes.
• Defective acknowledgment due to lack of authority of notary. (Acknowledgment taken before commission or after expiration of commission.)
• Descriptions apparently but not actually adequate.
• Deed from bigamous couple – prior existing marriage in another jurisdiction.
• Mistake in recording legal documents. (For example, incorrect indexing or errors and omissions in transcribing, and failure to preserve original instruments.)
• Special assessments where they became lien upon passage of resolution and before recordation or commencement of improvements for which assessed.
• Recorded easement, but erroneous ancient location of pipe or sewer line which does not follow route of granted easement.
• Undisclosed divorce of spouse who conveys as sole heir of deceased consort.
• Deed from record owner of land where he has sold property to another purchaser on unrecorded land contract and the purchaser has taken possession of premises.
• Tax titles invalid because of irregularity of proceeding, reversal of court decisions, or lack of decisions on points of law.
• Fraud, duress or coercion in securing essential signatures.
• Deeds by persons of unsound mind.
• Invalid, suppressed, undisclosed, and erroneous interpretation of wills.

For the average property owner, there are two different types of title insurance policies that you need to be aware of:

Owner's Title Insurance Policy
Mortgagee's Title Insurance Policy

Since most property owners mortgage or borrow money at the time of purchase or even sometimes during ownership, the lender can be expected to request protection of its investment. Lenders know that many things can cause loss of title or that expenses are incurred while defending a claim and are looking to protect themselves the same way you look to protect you.  They insist upon a Mortgagee's Title Insurance Policy to protect their stockholders' and investors' investment in your property; wouldn't you?

An Owner's Title Insurance Policy protects your investment as the buyer of the property. As the owner, you should want to have the same assurance as the lender that the investment you have made cannot be lost because of a problem or defect with the title. Take a look at the first slide for some of the common problems that can occur and create an issue or even lawsuit against you and your title.

Vanguard Signature Settlements, LLC
188 Thomas Johnson Drive, Suite 201
Frederick, Maryland 21702
Telephone: 301- 695-1235
Fax: 301- 695-6009

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