WHAT CLAIMS OR DEFECTS ARE COVERED BY TITLE INSURANCE POLICIES IN TEXAS?

If someone claims an interest in your property, a title company will defend your title in court and pay for any actual loss under these circumstances:

A lien is filed against your title because a previous owner failed to pay a mortgage or deed of trust; a judgment, tax, or special assessment; or a charge by a homeowners or condominium association. If you receive notice of a previous lien, contact your title company immediately and follow your policy’s claim filing procedure. Failure to do so could jeopardize your claim.

There is a lien on your title for labor and materials furnished by a contractor without your consent. Generally, your policy protects you if you buy a house already built, but not if you own the land and contract with a builder to build your home. Consult an attorney about your rights.

There are other liens or claims against your title that aren’t listed in the policy exceptions.

Leases, contracts, or options on your land weren’t recorded in the public records and disclosed to you.

The title policy failed to disclose legal restrictions on how you can use your property.

There is an easement that isn’t in public records and that you don’t know about. The title policy assures you a legal right of access to your property. This means that you have a right to travel from your property to a public street or road.

Someone didn’t properly sign the chain of title, or a notary public made an error on the document, made an error in recording the document at the county clerk’s office, or failed to deliver the deed according to statutory requirements.

A deed or other document in your chain of title is invalid as a result of forgery, fraud against the rightful owner, a signature given under force, or a signature given by a person legally incompetent to sign or claiming to be someone else.

It is important for Buyers and Sellers of real estate in Texas to read title insurance policies carefully because different companies may describe their coverage exceptions differently. In particular, review SCHEDULE B of your title insurance policy with an experinced real estate lawyer. This Section explains any limitations, exclusions, exceptions, and special conditions.

San Antonio lawyer Trey Wilson is an experienced real estate attorney familiar with Texas titke policy forms, exceptions and exclusions. he was named by his peers as one of San Antonio's best real estate litigation attorneys. He may be reached at 210/223-4100 or www.sa-law.com.