Why do you need title insurance?

When you decide to buy a new home, you want to be sure the property will be yours and that no
one else will have any liens, claims or encumbrances against your home other than your agreed
mortgage. Most lenders require an insurance policy to insure they security interest against losses due
to defects in your title that were not discovered at the time of the sale. The loan policy offers no
protection for the homeowner. Just as lenders want security with their title policy, you should protect
the equity in your new home with an owner's title policy. For a low one-time premium you can
receive the protection of a title insurance policy. Ask your title agent for an owner's policy.

There are a few things in life more important than protecting your home. The following matters are
examples of why you need an insurance policy. Remember that even the best title examination or
search cannot protect your equity and home from matters not appearing in the public records.
However, an owner's title policy can protect you from:

1. Documents executed under false, revoked or expired powers of attorney

2. False impersonation of the true land owner

3. Undisclsoed heirs

4. Improperly recorded legal documents

5. Prescriptive rights in another not appearing of record and not disclosed by survey

6. Failure to include necessary parties to certain judicial proceedings

7. Defective acknowledgements due to improper or expired notarization

8. Corporate franchise taxes as liens on corporate real estate assets

9. Gaps in the chain of title

10. Mistakes and omissions resulting in improper abstracting

11. Forged deeds, mortgages, wills, releases of mortgages and other instruments

12. Deeds by minors

13. Deeds which appear absolute, but which are held to be equitable mortgages

14. Conveyances by an heir devisee or survivor of a joint estate who attempts to attain title by
ill gotten means

15. Inadequate legal descriptions

16. Conveyances by undisclosed divorced spouses

17. Duress in execution of wills, deeds and instruments conveying or establishing title

18. Issues involving delivery of conveyancing instruments

19. Deeds and wills by persons lacking legal capacity

20. State inheritance and gift tax liens

21. Errors in tax records

22. Demolition and substandard building liens

23. Administration of estates and probate of wills of missing persons who are presumed
deceased

24. Issues of rightful possession of the land

25. Issues concerning the rightful conveyances by corporate entities

26. Deeds and mortgages by foreigners who may lack legal capacity to hold title

27. Legal capacity of foreign representatives and trustees

28. Issues involving improper marital status

29. Improper modification of documents

30. Rights of divorced parties

31. Conveyances in violation of public policy

32. Misinterpretation of wills and ancillary instruments

33. Deeds by persons falsely representing their marital status

34. Claims by creditors of decendent against property improperly conveyed by heirs and
devisees

35. Issues concerning unlawful takings by eminent domain or condemnation

36. Special tax assessments

37. Real estate homestead exemptions

38. Forfeitures of real property due to criminal acts

39. Issues concerning adoption of children

40. Conveyances and proceeding affecting rights of military personnel protected by the
Soldiers and Sailors Civil Relief Act

41. Issues concerning interests noted in financial statements filed under Uniform Commerical
Code

42. Interets arising by deeds of fictitious parties

43. Adverse possession

44. Lack of jurisdiction or competency of persons in judicial proceedings

45. Community property issues

46. Utility easements

47. False affidavits of death or heirship

48. Interstate estates

49. Probate matters

50. Federal estate and gift tax liens

^{(*Subject to certain limitations as set forth in the policy)}