One buyer thought everything about their vacant property purchase was routine. The deal was completed through a title agent, documents were signed, funds were transferred and ownership was officially recorded.
Then, within a week, everything changed.
As the buyer began planning improvements, they were approached by the heirs of the prior owner.
Their relative had passed away and, according to them, the property had not been legally sold. They had no idea how the buyer’s deed had been recorded.
Suddenly, the buyer faced a serious possibility: the seller may not have had legal ownership to transfer in the first place.
An investigation uncovered the truth.
The deed that transferred the property into the seller’s name was fraudulent. Authorities later arrested the suspect, who had even tried to cover their tracks by removing the deceased owner’s info from online property listings.
The issue was never with the transaction; it was buried in the property’s history.
Fortunately, the buyer had secured a First American Owner’s Policy of title insurance at closing.
Once the fraud was confirmed, First American paid the buyer the full amount covered by the policy, subject to terms, conditions and coverage.
Thanks to title insurance, what could have been a complicated and costly situation was addressed through the protections outlined in the title insurance policy.
Not all real estate fraud happens during a sale.
Sometimes, defects exist quietly in the chain of title—and sit undetected until long after closing.
Without an Owner’s Policy, the buyer could have faced the risk of significant legal costs in addition to the loss of their investment in the property.
Some ownership risks aren’t visible, even in a smooth transaction.
A First American Owner’s Policy helps protect your investment against off record risks due to hidden defects, fraud, and forgery on matters covered by the title insurance policy—so you’re not facing those challenges alone.
As with any insurance contract, the insuring provisions express the coverage afforded by the title insurance policy and there are exceptions, exclusions and conditions to coverage that limit or narrow the coverage afforded by the policy. Also, some coverage may not be available in a particular area or transaction due to legal, regulatory, or underwriting considerations.
Please contact a First American representative for further information. The services described above are typical basic services. The services provided to you may be different due to the specifics of your transaction or the location of the real property involved.
