2. Kent Rayborn Business Consultant North American Title Company

3. Common Problems Errors in public records Unknown liens Illegal deeds
Missing heirs
Forgeries
Undiscovered encumbrances
Unknown easements
Boundary disputes
Undiscovered will
False impersonation

4. Unknown Mechanic’s Liens
Investor finds smoking deal on off-market house
All cash transaction
Deed – signed and filed
Renovations – new kitchen, windows and flooring
Flip for quick profit
Roofing contractor – demand of payment letter

5. Unknown Mechanic’s Liens (continued)
Mechanic’s lien – unpaid balance of $6,000
Didn’t close with title company, thus no owner’s title policy
Satisfaction of mechanic’s lien in order to resale
Investor makes $6,000 less profit
If closed with a title company, the original seller would have to pay the mechanic’s lien

6. Easement…What Easement?
Family purchases house
Several years later adds a big wrap-around porch
Local power company needs access to underground cables
Cables are directly under the recently added porch
Damage caused during access of cables
Porch renovation and redesign
If closed with a title company they would have been aware of the easement

7. Did Everybody Sign the Deed?
Young couple buys FSBO starter home
Seller finances the transaction and signs deed
Years later, time to move up to larger house
New buyer uses bank financing and closing with a title company
Ex-wife is on original title and still official owner
If a title company had been used on the first transaction, the ex-wife would have been discovered

8. The Missing Brother Homeowner is widow with seven sons
One of her sons is boat captain
No contact for years
Presumed lost at sea
Declared legally dead
Widow passes and six sons inherit house
Sons sell house to settle the estate

9. The Missing Brother (continued)
Several years later the missing sea captain son returns from the dead
He wasn’t dead, had moved to start a new life elsewhere
The boat captain son files a lawsuit against the new homeowners
A title company was used for the sale and an owner’s policy issued
Homeowners were protected
Homeowners filed claim through title insurance
Homeowners were able to keep the house at no additional expense
Boat captain son received his share of house sale, paid by title insurance

10. Thank You!