hen you purchase real possession of the property. A
estate, you will almost title insurance company may be
certainly need to take willing to insure you against
out a title insurance policy such risks, but if so it will
covering you against the risk of certainly charge you a higher
unrecorded defects in your title. premium because it will have to
Following is a list of some of send someone out there to inspect
the risks that almost no title the property. In this case,
insurance company will cover: unless the property is far away
from where you are, you might as
1. There is a defect in the title well do it yourself and save the
to the property that you extra expense.
purchase, and although it is
unrecorded (and thus would 4. Governmental restrictions on
normally be covered), you knew property
about it before the closing of
the sale. Suppose you buy property
intending to develop it into a
2. The property was given to you shopping mall only to discover
as a gift. after closing that it has been
zoned for residential use only.
3. Problems that are not likely Or suppose that before the
to be recorded but can be closing the government exercised
discovered by inspection of the its power of eminent domain to
property confiscate the property for a
public park or a highway (paying
Examples include boundary the seller market value, of
disputes and unrecorded title course), and the seller sold it
claims made by someone other than to you before the government
the owner who is in actual actually took possession of the
property. Don’t come running to require you to clean up a mess
the title insurance company over made by the previous owner.
this one – you’ll have to try to
get to the seller before he DISCLAIMER: The following is
spends all his money. Another provided only for reference and
possibility would be does not constitute legal advice.
environmental regulations that
About the Author:
Real Estate Law in Plain English explains real estate law without the legalese.
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Bob Miles
Article Source: www.iSnare.com 
