What are common title defects that title insurance protects against?

Title insurance is designed to protect property owners and lenders from various defects in a title that could affect ownership rights. Common title defects include issues such as unknown heirs, forgery, and liens.

Unknown heirs refer to individuals who may have a claim to the property because they are legally entitled to inheritance but were not disclosed or known at the time of the property transaction. This can create significant problems if these heirs later come forward seeking ownership or monetary claims.

Forgery involves the illegal alteration or creation of documents related to property ownership, which can lead to disputes over who legitimately owns the property. A title insurance policy would cover claims arising from such fraudulent activity.

Liens are claims against the property for unpaid debts, such as mortgages or contractor payments, which can hinder a new owner's ability to take clear ownership of the property. Title insurance protects against financial losses associated with these sorts of claims, ensuring that the new owner has a clear title free from unforeseen encumbrances.

The other options, while they may seem relevant to property ownership, do not represent defects in title. Legal counsel fees are typically part of the costs associated with legal disputes but are not themselves related to a defect in the title. Property tax increases pertain to fiscal matters and not a defect in