It was a dark and stormy night. Sandra had just finished moving into her new house and was enjoying the evening alone in her living room. She started going through the day’s mail when she let out gasp. In her hands was an envelope with big red letters reading, “FINAL NOTICE: INTENT TO LIEN.” Her face turned ghostly white as she read her name at the top of a letter spelling out a lender’s intent to collect several thousand dollars from an unpaid mortgage. After a quick google search, she found the company was legitimate. What’s worse, she did not have title insurance!

While Title insurance should keep you from worrying about monsters like liens this Halloween, here are a few other title terrors that can be hiding in your property’s history.

Forgery and impersonations

Forgery occurs when someone lies about a property’s details stored in the public record. Forgers will often attempt to transfer ownership of a land or home away from a legitimate property owner without them knowing. Also, altering a legitimate deed can be a way to take out false loans, leaving repayment up to the property owner. Forgeries can lead to several complications when it’s time to buy or sell a home and resolving them without insurance can be very costly.

Prior mortgage or lien

When it comes to personal property like a house or a car, a bank or other creditor will attach a notice (or a lien) to the property that tells the world, “someone owes me money on this!” Usually filed within a county’s records, a property lien is a common way for real estate stakeholders to make sure that they are paid in full for a certain piece of property. If liens go unaddressed, they can be a nightmare when trying to buy or sell a home!

Deeds not properly recorded

If a deed hasn’t been reordered correctly in the past, it means that transactions related to the property cannot be executed. If you’re in the process of buying or selling a home, this means the sale cannot happen or could be delayed for a very long time. It also prevents homeowners from refinancing their mortgage or taking out a home equity loan. There are even risks of losing a home or getting hit with excessive liens that you did not know existed.