20 Ways You Might Lose Your Property
WHEN TITLE INSURANCE COMES INTO PLAY
A forgery 50 years ago; a deed executed under duress; an error by a clerk in the county recorder’s office; a misapplied tax payment— these are but a few of the hidden “title defects” that could cause you to lose your property. And, even if you don’t lose your property altogether, title problems could make it impossible for you to sell.
You don’t want a problem that occurred long before you bought your property to deprive you of ownership or your right to use or dispose of it. And you don’t want to pay the potentially high cost of defending your property rights in court.
An Owner’s Policy of title insurance is your best protection against potential defects that can remain hidden despite the search of public records. A Loan Policy of title insurance also exists to protect your mortgage lender’s interest.
For a one-time premium, Texas Secure Title Company will issue a policy protecting you against covered losses suffered due to undetected defects that existed prior to the issue date of your Texas Secure Title Company policy, up to the amount of the policy. Your title insurance policy also provides for legal defense costs unless the matter is excluded or excepted.
Your title insurance policy protects you against potential defects such as:
- Forged deeds, mortgages, satisfactions, or releases
- Deed by person who is insane or mentally incompetent
- Deed by minor (may be disavowed)
- Deed from corporation, unauthorized under corporate by-laws or given under falsified corporate resolution
- Deed from partnership, unauthorized under partnership agreement
- Deed from purported trustee, unauthorized under trust agreement
- Deed to or from a “corporation” before incorporation, or after loss of corporate charter
- Deed from a legal nonentity (styled, for example, as a church, charity, or club)
- Claims resulting from use of “alias” or fictitious name style by a predecessor in title
- Deed challenged as being given under fraud, undue influence, or duress
- Deed following nonjudicial foreclosure, where required procedure was not followed
- Deed affecting land in judicial proceedings (bankruptcy, receivership, probate, conservatorship, dissolution of marriage) unauthorized by court
- Deed following judicial proceedings subject to appeal or further court order
- Deed following judicial proceedings where all necessary parties were not joined
- Deed signed by mistake (grantor did not know what was signed)
- Deed executed under falsified power of attorney
- Deed executed under expired power of attorney (death, disability, or insanity of principal)
- Deed apparently valid, but actually delivered after death of grantor or grantee, or without consent of grantor
- Undisclosed divorce of one who conveys as sole heir of a deceased former spouse
- Deed affecting property of deceased person, not joining all heirs
We’ve hopefully got you thinking. If you read this and think you cannot possibly lose your land and investment to one of the many on the enumerated list, you could be wrong. At Texas Secure Title Company, we understand the undertaking and take pride in helping you make these purchases confidently – knowing that there will be little to no risk to you.
Stay tuned for “Part II” in this series, where we will continue sharing the many ways that you could potentially face a title defect on your property.