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- ForgeryPossibly. There are some hidden hazards that even the most diligent title search may never reveal. For example, the previous owner could have incorrectly stated his marital status, resulting in a possible claim by his legal spouse. Other “hidden hazards’ include fraud and forgery, defective deeds, mental incompetence, confusion due to similar or identical names or clerical errors in the records. These defects can arise after you’ve purchased your home and can jeopardize your right to ownership. This is why title insurance is recommended and sometimes required by the lending entity.
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