One of the most important insurance policies you can buy as a homeowner is title insurance. This insurance will protect you if issues arise involving the title to your home. Let's discuss some common title issues that might affect your legal right to a property.
Some of the most common issues with a title happen because of human error. There could have been errors made by the clerical staff that handled your title and how it was filed with the county. A simple clerical error could cost you your home.
It's possible that the previous owner of the home could have forged information on the title to the property. For example, the person who signed the title to the property could have forged the signature. It's possible that they were not who they said they were.
It's very common for new homeowners to uncover unknown liens well after they take possession of the property -- liens that were placed on the home because the prior owners owed creditors money. It doesn't matter who owns the home currently if there are liens against it. You could wind up with nowhere to live.
Buying property does not give you free and clear rights to it, especially if an undiscovered will turns up years after the transaction. This is common when the former owner of the home dies.
As you can see, there are a plethora of issues that can arise when it comes to the title for your home. Make sure you have title insurance and that it is still active. These issues can have serious legal ramifications on your ability to remain in your home.