Uninsured Deeds: Red Flags for Agents

Most common problems from uninsured deeds come from quitclaim deeds between family members, especially between spouses. When a person is added to title without going through a title company, it creates a window of opportunity for liens, judgments, or other matters against that person to attach to the property — without any title search to identify them.

Why should agents be concerned when taking a listing? An uninsured deed may indicate a divorce situation, a deed signed under duress, or a possible bankruptcy. Any of these scenarios can create title complications that delay or prevent closing. The title company will need extra time and documentation to clear issues arising from uninsured transfers.

How to spot an uninsured deed on a property profile: look for an accommodation stamp on the document, no title company or title order number, no escrow number, no document stamp under the fee section, a handwritten document, or a recording time that is not 8:00 AM (title company recordings are typically first thing in the morning). Any of these indicators suggests the deed was recorded outside of a normal title-insured transaction.

If you identify an uninsured deed in the chain of title, contact your title officer immediately. Team Goeglein at Fidelity National Title will research the transfer, identify any issues that may have attached during the uninsured period, and develop a plan to clear title before your closing.