Title Insurance: Most Often Risks

As legal practice shows the most often met risks which reveal in during purchase of real estate extending on title insurance have following features:

1. Deal preceding the deal of insured person is recognized by court illegal for the following reasons:

- at the time of the agreement conclusion  the person concluding it is acknowledged incapable or there was limited ability;

- person was in condition which deprived him the ability to assess the situation and to understand sense of acts;

- person concluding the bargain was under the influence of acknowledged intended introduction him in delusion, violence over it or threat;

- person concluding the bargain didn’t receive a consent from husband / wife with regard to general real estate disposal;

- real estate was transferred as a rent for providing certain citizen a perpetual allowance without receipt of permission of the rent receiver.

2. In prior bargains incorrectly drawn up legal documentation was revealed.

3. During purchase of real estate there was a fraud fact from the seller of real estate.

4. In case of bargain were not taken into account interests of the available heirs and minor children.

5. Other cases.

As we can see there is a lot of cases and none of us can be sure that won’t appear among victims in case of conclusion of the deal with mentioned risks when it was acknowledged by the court as invalid.

Easy solution in of such situation is possible in case of honesty of the seller which will just agree to return money. However, not always such variant takes place and therefore the availability of title insurance comes just at the right moment.

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