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WHY YOU NEED TITLE INSURANCE
CHICAGO TITLE CALIFORNIA BUYER & SELLER GUIDE
We Hope You Never Have a Title Claim
With home ownership comes the need to protect the property against the past, as well as the future. Each successive owner brings the possibility of title challenges to the title of the property. Title insurance protects a policyholder against challenges to rightful ownership of real property, challenges that arise from circum- stances of past ownerships.
Examples of Some Title Claims
• When a fire destroys only the house and improvements, but the land is left. A defective title could challenge your right to the title to the underlying land. Title insurance protects you (as specified in the policy) against the loss of
the title to the underlying land.
• A deed or mortgage in the chain of title is
forged.
• A deed or mortgage may have been signed by
an under age person.
• A deed or a mortgage may have been signed
by an incapacitated person or one otherwise
incompetent.
• A deed or a mortgage may have been execut-
ed by an attorney-in-fact, except the
power of attorney was previously terminated and would, therefore, be void.
• A deed or a mortgage may have been made by a person other than the owner, but with the same name as the owner.
• The testator of a will might have had a child born after the execution of the will, a fact that would entitle the child to claim his or her share of the property even years after the estate has sold the property.
• A deed or mortgage may have been procured by fraud or duress.
• Title transferred by an heir may be subject to a federal estate tax lien.
• An heir or other person presumed dead was in fact alive and files an action to recover the property or an interest therein
• A judgment or levy upon which the title is dependent may be void or voidable on account of some defect in the proceeding.
• A deed or mortgage may be voidable because it was signed while the grantor was in bankruptcy.
• There may be a defect in a recorded document upon which your title is dependent.
• Claims constantly arise due to marital status and validity of divorces. Only title insurance protects against claims made by a non- resident or divorced spouse.
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