What Is An Uninsured Deed?
An uninsured deed is basically a deed that has not been examined or insured by a title company.
The most common problems that arise due to an uninsured deed are from Quitclaim Deeds between family members, especially husband and wife.
When a person is added to title there is an opportunity for matters recorded against him/her to attached to the property.
Why Should it be of Concern?
In a sale or loan transaction the validity of an uninsured deed may be questioned.
- Was it signed under duress?
- Is it a forgery?
- Was adequate consideration given to the grantor, and if not, why?
Uninsured deeds may also cause a delay in clearing title.
The following items may indicate that an uninsured deed is present.
- The accommodation stamp
- No title company name or title order number
- No escrow number
- A handwritten document
- Recorded time is not 8:00 a.m.