Q: Can you be a little more specific about the types of claims, or
risks, covered by title insurance?
A: Sure. First
understand there different levels of coverage: Standard coverage and extended
coverage
Standard coverage handles such risks as:
-Forgery and impersonation;
-Lack of competency, capacity or legal authority of a party;
-Deed not joined in by a necessary party (co- owner, heir, spouse,
corporate officer, or business partner);
-Undisclosed (but recorded) prior mortgage or lien;
-Undisclosed (but recorded) easement or use restriction;
-Erroneous or inadequate legal descriptions;
-Lack of a right of access; and
-Deed not properly recorded.
An extended coverage
policy may be requested to protect against such additional defects as:
-Off-record matters, such as claims for adverse possession or
prescriptive easement;
-Deed to land with buildings encroaching on land of another;
-Incorrect survey;
-Silent (off-record) liens (such as mechanics' or estate tax
liens); and
-Pre-existing violations of subdivision laws, zoning ordinances or
CC&R's.violations.