Can I Keep My Property If A Title Claim Is Made Against It?

07/15/2025 06:02 AM Mark Goodman

Title insurance is a wonderful asset to have in the event that an issue develops with the ownership of your property. This policy offers financial protection against costly claims against your property. However, if the claim turns out to be valid, will you lose the property? In today’s blog, we explain what can happen to your property in the event that someone else makes a valid title claim against it.

Keeping Your Property After A Title Claim

While it’s nice knowing that you have financial protection in the event that someone else makes a valid claim on your property, if you’ve poured your heart and soul into the property, you don’t want to lose all that you’ve worked for. Even though some other entity may have a legal right to the property, there are ways that the issue can be resolved. Let’s dive into a few different examples:

Outstanding Lien - Let’s say for example that it is discovered that there was an unpaid property tax bill that originated with a previous owner. Now that you’re the property owner, you may be surprised that this unpaid lien has actually become your problem. However, if you have title insurance, your policy should provide coverage to pay off this outstanding lien. Your policy will effectively pay off this unforeseen debt, clearing it from the title and keeping money in your pocket. With the lien resolved, business can continue as usual and you don’t need to worry about the lien causing a potential foreclosure.
Long Lost Heir - Another potential issue you could run into is if a long-lost heir comes forward and suggests that the original sale is invalid because they actually own the property or at least a portion of it. Perhaps a long lost cousin or an ex-wife returns to claim their property. Should this occur, and should they actually have a valid claim, can they just take over the property despite all the work and time you’ve put in? In many instances, your title insurance company would attempt to negotiate a buyout of their portion of the property. There is no guarantee that you would get to keep the property if the original owner wants the land, but if a fair settlement amount can be negotiated or set by the court, you can retain the property and your title insurance company will be on the hook for the necessary payout.

In either instance, the only way to give yourself the chance to retain your property, at least without having to pay some exorbitant expense out of your own pocket, is by securing an owner’s title insurance policy. This one-time fee will provide you with financial protection and a much higher likelihood of being able to keep the property in the event that a title claim is made on your property at some point during your ownership of the land. We have helped countless property owners secure a smart title insurance policy for their needs, and we can do the same for you. For more information on how we can do this, or for assistance securing a policy, reach out to the team at Commercial Partners today at (612) 337-2470.