She said it’s really not my habit to intrude
Furthermore, I hope my meaning won’t be lost or misconstrued
But I’ll repeat myself, at the risk of being crude
There must be fifty ways to leave your lover
Fifty ways to leave your lover
“50 Ways To Leave Your Lover” (c) Paul Simon
50 Ways To Lose Your Home
As Massachusetts real estate closing attorneys, we are often asked by buyers-borrowers, “Why should we get an owner’s title insurance policy if you are already doing a title examination?” This is a really good question, and the perfect lead in to a conversation about of the coverages and cost of a Massachusetts owner’s title insurance policy. Do you know the Paul Simon tune, “50 Ways to Leave Your Lover”? Well, there are more than 50 ways to lose your home without an owner’s title policy. Simply put, don’t take the risk of foregoing title insurance. It’s not worth it.
Title Insurance Basics
Title insurance protects homeowners from financial loss in the event that certain covered problems develop regarding the rights to ownership of their property. While all borrowers of conventional mortgages will receive a certification of title by a Massachusetts real estate closing attorney that their title is “good, clear and marketable,” there can be a host of hidden, off-record title defects that even the most careful title search will not reveal. In addition to protection from financial loss, title insurance pays the cost of defending against any covered claim.
50 Ways to Lose Your Home
Like the Paul Simon song, there are at least 50 ways you can lose title to your home if you don’t get an owner’s title insurance policy. The vast majority of these situations will not be ascertained in a typical title examination.
- Forged deeds, mortgages, mortgage discharges/satisfactions
- Deeds executed by a mentally incompetent or insane person
- Deed from a minor subject to avoidance
- Unauthorized deed from partnership or trustee
- Deed by foreign person vulnerable to challenge
- Deed from a corporation unauthorized by by-laws or resolution
- Undisclosed divorce of person who conveys as sole heir of a deceased former spouse
- Deed signed by mistake or under financial duress
- Deed signed under defective power of attorney
- Foreclosure deed where underlying foreclosure was defective
- Ineffective release/discharge of prior mortgage
- Deed of deceased not joining all heirs
- Missing heirs claiming interest in property
- Transfer void under contract law
- Deed includes protected public trust wetlands
- Ineffective release of mortgage subject to bankruptcy avoidance powers
- Ineffective mortgage subordination
- Mistakenly indexed deed/release
- Undisclosed federal/state tax lien
- Undisclosed spousal/child support lien
- Undisclosed lawsuit affecting property
- Undisclosed restrictions/covenants
- Incorrect legal description
- Errors in tax records
- Erroneous tax release
- Misinterpretation of wills
- Deed without right of access to public way
- Access eliminated by foreclosure
- Defective notarization
- Forged notarization
- Improperly recorded or indexed deed/mortgage
- Deed acquired through creditor fraud
- Mechanic’s lien claims
- Incorrect property boundaries
- Encroachments of buildings
- Federal or state estate tax liens
- Preexisting violation of subdivision laws
- Preexisting violation of zoning laws
- Deed from joint owner without joint tenant joining
- Undisclosed right of first refusal
- Undisclosed easement affecting property
- Undisclosed party wall agreement
- Special assessment liens
- Adverse claim of vendor’s lien
- Discovery of un-probated will
- Claims for prescriptive rights, not of record
- Easement does not conform to recorded instrument
- Incorrect survey
- Deed following lawsuit where all parties of interest not joined
- Deed executed under falsified power of attorney
Getting an owner’s title insurance policy is simply a “no brainer.” I did the title to my own home in Sudbury, and I got an owner’s policy. It’s a one time premium paid at closing, and stays in effect as long as you own your home, through refinances and even the death of a spouse. Please contact us about carriers, rates and coverages.
