MA title insurance

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.

1. Forged deeds, mortgages, mortgage discharges/satisfactions
2. Deeds executed by a mentally incompetent or insane person
3. Deed from a minor subject to avoidance
4. Unauthorized deed from partnership or trustee
5. Deed by foreign person vulnerable to challenge
6. Deed from a corporation unauthorized by by-laws or resolution
7. Undisclosed divorce of person who conveys as sole heir of a deceased former spouse
8. Deed signed by mistake or under financial duress
9. Deed signed under defective power of attorney
10. Foreclosure deed where underlying foreclosure was defective
11. Ineffective release/discharge of prior mortgage
12. Deed of deceased not joining all heirs
13. Missing heirs claiming interest in property
14. Transfer void under contract law
15. Deed includes protected public trust wetlands
16. Ineffective release of mortgage subject to bankruptcy avoidance powers
17. Ineffective mortgage subordination
18. Mistakenly indexed deed/release
19. Undisclosed federal/state tax lien
20. Undisclosed spousal/child support lien
21. Undisclosed lawsuit affecting property
22. Undisclosed restrictions/covenants
23. Incorrect legal description
24. Errors in tax records
25. Erroneous tax release
26. Misinterpretation of wills
27. Deed without right of access to public way
28. Access eliminated by foreclosure
29. Defective notarization
30. Forged notarization
31. Improperly recorded or indexed deed/mortgage
32. Deed acquired through creditor fraud
33. Mechanic’s lien claims
34. Incorrect property boundaries
35. Encroachments of buildings
36. Federal or state estate tax liens
37. Preexisting violation of subdivision laws
38. Preexisting violation of zoning laws
39. Deed from joint owner without joint tenant joining
40. Undisclosed right of first refusal
41. Undisclosed easement affecting property
42. Undisclosed party wall agreement
43. Special assessment liens
44. Adverse claim of vendor’s lien
45. Discovery of un-probated will
46. Claims for prescriptive rights, not of record
47. Easement does not conform to recorded instrument
48. Incorrect survey
49. Deed following lawsuit where all parties of interest not joined
50. 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.

{ 4 comments }