If you have never purchased a piece of property, a home or other real estate, you probably wonder about the purpose of title insurance. Like humans, you will find that any property you look at has a history, from ownership to upgrades.
Although title insurance has limitations, these companies can find these common real estate title issues.
Forged documents
In today’s society, you have to watch for identity theft and dishonest people. However, you should also be aware of property theft and fraud. There are people who forge ownership documents of properties and file them with public records. In addition, someone with a similar name or fraudulent documentation could impersonate the property owner and sell real estate that he or she does not own.
Unfortunately, the office may consider these documents valid. When a title company starts investigating property ownership, it can find these forgeries. However, if you do not find them before you close, you could jeopardize your ownership rights even if you started making payments or paid for the real estate in full.
Inheritance challenges
Many heirs sell their homes and land after their benefactors die. However, at times, missing or unknown heirs may reappear later. In addition, other family members may contest the will to gain rights to the property that the heirs received.
In addition, you may purchase a property from an estate where the owner died seemingly without a will. However, when the heirs find the will, even if it takes years, its provisions guide the land’s ownership and usage. If you have already purchased the property, you could lose it to these missing heirs.
These are only two of the issues you may encounter when you purchase real estate. Protect yourself by learning about other common title problems.
