What Is Title Insurance?: San Diego Foreclosures and REO's

What does title insurance protects against?

When buying San Diego foreclosure and REO homes and condos, it is best that you hire a foreclosure real estate agent who has the experience and knowledge to research your San Diego foreclosure or REO investment property for you. Even if the bank already holds the title to the San Diego foreclosure or Reo property that you plan to fix and flip, you still need to be certain that the house will have a clear title. Here are some of the most common hidden risks that can cause a loss of title or create an encumbrance on title:

Forged deeds, mortgages, satisfactions or releases of mortgages, and other instruments.
Impersonation of the true owners of the land by fraudulent persons.
Outstanding prescriptive rights not of record and not disclosed.
Undisclosed or missing heirs.
Liens from unpaid estate, inheritance, income, and gift taxes.
Defective acknowledgment due to lack of authority of notary. (Acknowledgment taken before commission or after expiration of commission.)
Descriptions apparently but not actually adequate.
Deed from bigamous couple - prior existing marriage in another jurisdiction.
Mistake in recording legal documents. (For example, incorrect indexing or errors and omissions in transcribing, and failure to preserve original instruments.)
Special assessments where they became lien upon passage of resolution and before recordation or commencement of improvements for which assessed.
Recorded easement, but erroneous ancient location of pipe or sewer line which does not follow route of granted easement.
Undisclosed divorce of spouse who conveys as sole heir of deceased consort.
Deed from record owner of land where he has sold property to another purchaser on unrecorded land contract and the purchaser has taken possession of premises.
Tax titles invalid because of irregularity of proceeding, reversal of court decisions, or lack of decisions on points of law.
Fraud, duress or coercion in securing essential signatures.
Deeds by persons of unsound mind.
Invalid, suppressed, undisclosed, and erroneous interpretation of wills.