Three Common Title Defects

Marc Rovner is an accomplished attorney who has served as general counsel and director of business development at BETA Abstract LLC since 1998. A resident of East Rockaway, New York, attorney Marc Rovner also teaches continuing legal education courses, covering real estate topics such as title insurance.

Title insurance protects lenders and home buyers from losses due to problems with the title. Unlike traditional insurance, title insurance only requires a single payment, the amount of which depends on the value of the house and the state where it is located. Here are three common title defects that may be covered by title insurance:

1. Errors in public records. Clerical or filing mistakes, such as misspellings, incorrect tax liens, and incomplete descriptions, can affect the transfer of ownership of a property.

2. Missing heirs. Heirs receive ownership of a property when a person dies. However, it may be the case that an heir named in the will cannot be found at the time of death. This can cause one or more heirs to contest the will and prolong the transfer of the rights.

3. Survey disputes. Disputes regarding the boundary of a property can happen when neighbors possess surveys with different dimensions. In such cases, neighbors may have a claim to a portion of your property.