In Maryland, title insurance consists of lender’s title insurance and owner’s title insurance. The lender’s portion is mandatory in order for the bank to approve your loan. The owner’s portions of the title insurance is optional. The purpose of the title search is to disclose title problems, take appropriate action to clear the records and enable the transaction to be closed.
In spite of all the work that goes into a search and examination of a title, hidden issues can emerge after completion of a real estate purchase which can lead to additional costs. For example,
- A forged deed that transfer no title to real estate,
- Mistakes in the public records
- Previously undisclosed heirs with claims against the property
- Instruments executed under expired or fabricated power of attorney