Title insurance protects property owners and lenders from hidden risks that may surface after the sale is complete. Here are some of the most common risks it covers:Forged Documents and Fraud
Real estate transactions are not immune to fraudulent activity, such as forged deeds or falsified records. Title insurance protects you from losing ownership due to such fraud, ensuring the legitimacy of the property title.Liens Against the Property
Previous owners may have left unpaid debts like mortgages, tax liens, or judgments attached to the property. Title insurance identifies and resolves these liens before the sale, protecting you from any unexpected financial liabilities.Easements or Encroachments
Undisclosed easements could give others the right to use part of your property, while encroachments (such as a neighbor’s fence crossing the boundary) can lead to disputes. Title insurance covers these risks, protecting you from future conflicts and financial loss.Disputes Over Property Boundaries
Mistakes in property surveys or records can result in costly disputes over property boundaries. Title insurance covers legal fees and compensates for losses in the event of such boundary disputes.Pre-existing Violations of Subdivision or Zoning Laws
Sometimes, a property may unknowingly violate local zoning or subdivision laws, leading to penalties or required modifications. Title insurance protects you from these pre-existing violations, ensuring you're not held responsible for issues you didn’t cause.