WHAT ARE SOME OF THESE
HIDDEN RISKS?

Some of the most serious risks which are not revealed by the records or by an examination of the abstract but covered by a Gulf Coast Title Partners title insurance policy are:

Marital Status of Owner Incorrectly Given. Under the law, one spouse may have an interest in property owned individually by another spouse. An owner may say that he or she is single, although secretly married or perhaps divorced in another state - resulting in a claim by a spouse or former spouse whose existence was not suspected.

Undisclosed Heirs. When an owner dies and there is no will, the courts must decide who the rightful heirs are. But even then, such a decision by the court may not be final or binding on any heir who was not notified of the proceeding. Even under a will, the court may have to settle questions of interpretation of the will. Cases of this kind include children born after the date of the will and heirs overlooked due to incorrect probate proceedings.

Mental Incompetence or Minors. A transfer of property by a minor or a person adjudged to be mentally incompetent raises special problems. To be valid and binding on a minor or incompetent, the transaction must be made by guardians or appointed by the court. If a deed or release was executed by a person who was a minor or under mental disability at the time, the transaction may be voidable or invalid.

Fraud and Forgery. The owner may have been fraudulently impersonated. Deeds, releases, or other documents may be forgeries.

Defective Deeds. A deed may have been delivered without consent of the owner or after his or her death. A document may have been executed under an expired power of attorney. The name of the grantee may have been inserted in the deed after its delivery. The officer of a corporation may not have been properly empowered to act. In any such case, the action may result in loss of title.

Confusion Due to Similar or Identical Names. Despite a careful investigation to prevent it, some confusion of identity is possible. For example, a person's title to his or her land, established thirty years ago, may be under the name Jonassen and the taxes may still be paid under that name - but the lawsuits, marriages, divorces, wills and other actions may be under a simplified family name, such as Johnson, Johnston, Jonson, or even Jansen. Or two members of the same family might have the same name, as in the case of father and son - and the title may be in one while the deed is executed by the other having no title.

Errors in Records or Clerical Work. A document may be missed in searching. Entries or indexing in records may be in error. Clerical mistakes are infrequent, but they do happen.

IS THERE ANY WAY TO BE
PROTECTED AGAINST
THESE RISKS?

Yes, with a Gulf Coast Title Partners title insurance policy. Under the terms of a Gulf Coast Title Partners policy, you are protected against risks and insured against loss. If your title as insured is ever attacked, Gulf Coast Title Partners stands ready to defend it in two ways:

1. If it is necessary to enter a legal defense of your rights under the policy in any suit or proceeding adversely affecting the title as insured, Gulf Coast Title Partners employs legal counsel to take such action for you...completely at our own expense.

2. If a loss is sustained, you are protected up to the full amount of your policy, which usually is equal to the full purchase price you paid for the property.

MY LENDER HAS A MORTGAGE
TITLE INSURANCE POLICY ON MY
PROPERTY. WHY ISN'T
THAT ENOUGH?

Any person or financial institution that lends money on real estate wants that investment protected. Gulf Coast Title Partners provides mortgage title insurance policies to assure the lender that the mortgage is a valid first lien protected against hidden as well as known defects in the title as insured. Such a policy affords the only way a lender can be certain about the title which may be acquired in the event of a foreclosure.

Unfortunately, this does not benefit the owner in the event of a claim, for a mortgage title insurance policy protects only the lender's interest in the property, not the current owner. That's why Gulf Coast Title Partners provides owners title insurance policies to protect the owner's interest in a piece of property. Purchasing your owners title insurance policy at the same time that the lender orders the mortgage title insurance policy can result in cost savings to you.

IS TITLE INSURANCE EXPENSIVE?

The cost of title insurance on any piece of property you may decide to buy is very small when compared with the benefit and security it gives. And, unlike other forms of insurance, there are no annual payments to keep the policy in force - you pay only one premium. The original premium is your only cost as long as you or your heirs own the property!