But, even the most careful search of public records may not reveal all of the problems or potential problems with a title. Errors in public documents – like a misspelled name – can lead to documents being missed and not reviewed. The seller may be acting fraudulently; posing as the legal seller when they are not, for example. Long-lost heirs and others who have rights to the property may be undisclosed or unknown. Documents executed under expired powers of attorney or expired notaries can also cause problems down the road. Title insurance also protects you from:
- False impersonation of the true owner of the property
- Forged deeds, releases or wills
- Undisclosed or missing heirs
- Instruments executed under invalid or expired power of attorney
- Mistakes in recording legal documents
- Misinterpretations of wills
Because a number of things can happen, we always recommend that you purchase title insurance. It will protect you should a claim arise against your title.