What matters are typically covered by a standard title insurance policy?

A standard title insurance policy is designed to protect against certain issues that may arise with the title of a property. One of the key matters typically covered is the presence of incompetent grantors. This refers to situations where the individual conveying the title may not have the legal capacity to do so, such as due to age, mental competency, or other reasons that could invalidate a transfer of property. If a title insurance policy is in place, it will typically cover losses related to claims that arise from such circumstances, providing a safeguard for the policyholder.

The other options, while they may concern title issues, do not represent the primary coverage offered by a standard title insurance policy. For instance, unrecorded rights of parties in possession can present complications but are generally not covered by standard policies. Similarly, judgment liens against the property may be handled by different types of insurance or risk management strategies, and private easements usually require separate disclosures and considerations in a real estate transaction. Title insurance specifically focuses on ensuring that the ownership of the title is legitimate and free from defects, particularly those related to the grantors' legal standing to sell the property.