What is the outcome if undisclosed heirs are found after a title transfer?

When undisclosed heirs are found after a title transfer, title insurance plays a critical role in protecting the new owner from potential claims related to these heirs. Title insurance serves as a safeguard against defects in the title that were not identified or disclosed at the time of the property transfer. If undisclosed heirs appear and assert their rights to the property, the title insurance can provide coverage for legal fees, settlement costs, or any financial losses that may arise from such claims.

Having title insurance in place ensures that the new owner has recourse in case issues arise related to ownership rights. The underlying principle is that the insurance covers risks associated with the title, which includes claims that may come from heirs who were not known or accounted for during the transaction. Thus, the presence of title insurance provides peace of mind and financial protection against the unforeseen complexities that can surface after a property transfer.