Why Title Insurance May Not Protect Against Deed Theft

Homeowners often mistakenly assume that title insurance will protect them from all potential issues with their property’s title, including deed theft. However, title insurance typically covers issues such as liens or ownership disputes that existed before the policy’s purchase. It rarely, if ever, covers fraudulent title transfers or deed theft that occur after the policy is in place. Title insurance is designed to protect lenders and owners from past defects in title but does not extend to fraud occurring post-purchase.

The absence of title insurance coverage for deed theft can leave homeowners without compensation and still facing the legal battle of reclaiming their property. If the fraudulent deed has led to multiple sales, the path to recovery can be even more complex. Each subsequent “buyer” in a chain of fraudulent sales may have believed they were engaging in a legitimate transaction, complicating the issue of determining rightful ownership. To restore ownership, the original property owner must go through a legal process known as “quiet title action,” which can be lengthy and costly. This lawsuit helps establish the true owner, invalidating the fraudulent transfers. Contact the professionals at McGarvey PLLC if you suspect a deed to your real property has been compromised and to get the crucial assistance you need in an effort to recover your property. mcgarveypllc.com