Not all risks can be determined by a Title Search. Certain hidden things such as Forgeries,
a Person's Identity, Incompetency, Failure to Comply with the Law, or Mental Incapacity,
cannot be disclosed by an examination of the public record. The Preliminary Report is an
offer to insure under certain situations, whereas the Title Insurance Policy is a contract
which provides coverage against such problems.
The American Land Title Association is the standard policy of Title Insurance in America,
and is commonly referred to as an 'ALTA' Policy.
WHAT AN ALTA POLICY COVERS:
* A Forged Signature on the Deed
* Mistakes in the Interpretation of Wills, or other Legal Documents
* Impersonation of the Real Owner
* Errors in Copying or Indexing Documents
* Falsification of Records
* Deeds delivered without the Consent of the Grantor
* Undisclosed or Missing Heirs
* Deeds and Mortgages signed by persons of Unsound Minds, by Minors, or by Someone listed
as Single, but in fact, is Married
* Recording Mistakes
With regard to lender’s coverage ALTA covers:
The Priority of the Insured Mortgage
The Invalidity or Unenforceablity of the Insured Assignment
The Invalidity or Unenforceability of the Lien of the Insured Mortgage on the Title
WHAT IS NOT COVERED BY AN ALTA POLICY:
* Unrecorded Matters
* Matters that a Correct Property Survey would show, i.e.: Boundaries, Easements, etc.
* Matters that a Physical Inspection of the Property would Disclose
* Matters Known, Created, or Assumed by the Insured
* Rights of Parties in Possession
* Unpatented Water and Mineral Rights
