One homeowner thought they had done everything right. They found the property, completed the purchase, paid closing costs and even invested additional money into the home. Months later, a letter arrived that changed everything.
An attorney representing another party alleged that the deed transferring the property to the seller had been forged.
The claim was serious: the true owner’s signature may have been falsified before the sale ever happened.
Suddenly, the homeowner wasn’t just dealing with a legal question—they were facing the possibility of losing their home.
While the claim was being investigated, a lawsuit was filed to invalidate the deed entirely.
The homeowner was drawn into litigation over something that occurred long before they purchased the property. If the seller never had valid ownership, what did that mean for them?
This is where uncertainty—and risk—can escalate quickly.
Fortunately, the homeowner had purchased a First American Owner’s Policy of Title Insurance.
First American appointed legal counsel to defend the claim on matters covered by the title insurance policy. The conclusion: the deed was forged, and the title was defective before the purchase.
Under the terms of the policy, First American compensated the homeowner the insured value of the property, subject to the policy’s coverage, conditions, and limits.
What could have been a significant financial loss was addressed through the protections outlined in the title insurance policy.
Title defects like forgery are sometimes only visible after closing.
They can surface months, or years, later. Without a First American Owner’s Policy, the homeowner could have faced legal costs and potential financial loss on their own.
Even careful buyers can’t see every risk.
A First American Owner’s Policy helps protect your ownership rights and your investment from hidden defects like forgery on matters covered by the title insurance policy—so you’re not facing those challenges on your own.
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.
