A title insurance policy would protect you from potential defects while getting a house on a mortgage. If there are title defects that you can’t find out by searching the public records, get a policy from a title insurance company in New Jersey. If you get a lender’s title insurance policy, the interest of your mortgage lender will also be protected.
One Time Premium For Loss Coverage
Any loss or damage you need to suffer due to an existing defect in the title can be covered by only paying the premium once. You might also be covered for the legal charges.
Potential Defects From Which You Will Get Covered
The title insurance might cover you for the following:
- Forged deeds, satisfactions, releases, or mortgages.
- Deed by anyone who is in a foreign country and might be unauthorized, defective, or incompetent under foreign laws
- Deed by a mentally incompetent person.
- Deed challenged as given under undue influence, fraud, or duress
- Any deed that was signed without the grantor’s knowledge
- If the sole heir of a former partner has passed away, if s/he had any undisclosed divorce
- Deed executed under the power of attorney that’s false
- A deed that affects the property of the deceased person without joining the heirs.
- Undisclosed but recorded state tax and federal lien
- Deed not indexed properly, yet recorded and thus can’t be found in the land records
- Recorded but the undisclosed judgment of spousal/child support lien
- Setback agreements, party wall, or boundary that was not disclosed but recorded
- A former recorded mortgage which was not disclosed
- Deeds, wills, or other instruments misrepresented.
- Deed to a land that doesn’t have any right to access a public road or a street
- Legal descriptions that have an error or are not adequate
- Forged witness acknowledgment or forged notarization