The purpose of title insurance is to protect the Lender and the Buyer against loss from mistakes which could have occurred in the abstract of the title and claims which cannot be discovered by an examination of public records.

Such mistakes include:

Fraudulent representations
Undisclosed or missing heirs
Invalid divorces
False affidavits
Liens involving judgments and mechanics
Unpaid taxes
Mistakes in recordings and title searches
Defective foreclosures or tax sales
Deeds executed under a defective power of attorney
Clerical errors in the land records

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