James and Paris purchased a home from David and Dana and purchased an owner’s policy of title insurance in connection with the purchase. After the sale, it was discovered that David and Dana were separated at the time of the sale and Dana’s signature was forged on the deed. Dana claims that the deed is void as to her half interest and demands $100,000 for her interest in the home. James and Paris file a claim with the title insurance company . Will the title insurance company protect them from Dana’s claim?

Question

Fill in the blank(s) with the appropriate word(s).

Answer 1

Yes, the title insurance company should protect James and Paris from Dana’s claim. One of the risks covered by an owner’s policy of title insurance is forged signatures on deeds. Assuming that James and Paris had no knowledge of the forgery at the time they received the deed, the claim should be covered by the policy.