• Eminent domain. The government’s four basic powers are taxation, police powers, escheat and eminent domain. The power of eminent domain refers to the government’s ability to take property from private ownership, normally through the process of condemnation. For more information, see the”Eminent Domain” article.
• Escheat. The government’s power of escheat refers to its prerogative of receiving the property of any person who dies intestate (without a will) and without any heirs. Depending on the location, the property will revert either to the state or the local county.
• Descent. The laws of descent—also called intestacy laws—are used to govern the disposition of real property of a person who has died intestate (without a will), but with heirs. The court appoints an administrator who will settle the debts of deceased person and dispose of any remaining assets. The deceased’s remaining property are normally distributed to heirs according to that state’s laws of descent.
• Lien enforcement. Property may be taken from its current owners by one of the lien holders with claims against the property’s title. Such foreclosures are normally initiated and conducted for delinquent real estate tax liens or defaulted mortgage liens. Most mechanics’ liens and judgment liens normally are not allowed to initiate foreclosure proceedings.
• Accretion. The gradual removal of land through either natural or human causes is called accretion. Loss of land through natural causes is typically labeled erosion.
• Adverse possession. Also called title by prescription or loosely referred to as squatter’s rights, this is the process by which a person can take property from its owner, without that owner’s consent.

States have varying statutes that the taker must meet to adversely possess another person’s property, but the four basic requirements are as follows:

1. Continuous use. The person who wishes to take the land must have occupied and/or used the property continuously for a minimum time period, specific to each state. [Note that usage without occupancy may give that person an easement by adverse prescription, rather than full ownership of the property.]
2. Adverse. The person’s use must be done without the owner’s consent and/or against the owner’s complaint. If the owner decides to give the person limited permission, then the right to adverse possession may be terminated.
3. Open and notorious. The person’s continuous use must be in the open, without attempt to hide or camouflage. It must be visible to all who care to look.
4. Exclusive. The person, family or group adversely using the property must possess it exclusively, without sharing it with either the owner or other parties.

• Devisor. The person (deceased) who is giving real property through the will is called a devisor. The operative element here is real estate. The devisor and testator are often the same person. It is simply that when real estate property is involved, that portion of the process is considered the devising and involves the devisor and devisee.
• Devisee. The person who is receiving real property through the will is the devisee. The devisee and beneficiary to a will may be the same person. The basic difference is whether the property being received is real property or personal property. In the portion of the will that deals with real property, the receiver is the devisee.
• Devise. The process of disposing real—as opposed to personal—property through a will is technically called the devise. The will may involve a devise and a bequest; the difference is that the devise handles the disposition of real property, while the bequest handles the disposition of personal (non-real) property.

Depending on whether the will is transferring personal property or real property, different terms and processes are involved. Before reviewing the differences between the transfer of personal property and real property through a will, let’s review the common elements and parties involved with the disposition of either type of properties:

• Testator. The deceased person who created the will or for whom the will was created is called the testator; however, this person may also be called the testatrix, if female. The testator is the person whose property is being disposed through the will.
• Executor. The person named in the will to administer the terms of the will is called the executor. This person may also be called the executrix, if female.
• Administrator. If the deceased person has died intestate (without a will), the probate court may appoint an administrator to oversee the distribution of the deceased person’s estate. An administrator may also be appointed if the will does not specify an executor. The female version is often called an administratrix.
• Probate. The process by which probate court settles the estate of a deceased person is called probate. Probate court is typically required when someone with assets dies without a valid will.

The first title insurance policies were actually provided by abstractors. As the role of abstractors expanded, they began to answer the need for more assurances to the buyer that he or she was receiving clear and marketable title to the desired property. So abstractors would have their attorneys analyze the abstract report, render a legal opinion as to its validity and then issue a title insurance policy to protect the owner against hidden risks, such as the following:

• Forgery. Legally recorded documents may actually be forgeries. Although they are invalid, they will remain on the property’s title until they are removed through legal process.
• Unqualified grantor. The grantor or assignor may be unqualified to execute the recorded deed. The deed or recorded document is therefore invalid and subject to removal from the title.
• Spousal rights. An incorrect marital status indicated on a deed or release may later hamper a deed or release, because dower and curtesy rights may create an encumbrance on the title.
• Defective deeds. Some recorded deeds may be invalid because of improper delivery or recording. For example, Bagwell signs a quitclaim deed to Natasha, but Natasha does not record the deed. Bagwell meanwhile has a mortgage on the property that goes into foreclosure. The lender forecloses the property and gains the title to the property. Natasha records the quitclaim deed after the foreclosure, but her deed will be invalid.

Title insurance companies soon grew to replace abstract companies, in providing title abstract and insurance protection. Over the decades, the title insurance industry continued to develop and provide a wider array of protection for its policyholders. Soon, the American Land Title Association (ALTA) was formed to provide national benchmarks and standards for its member title insurers.

Like all insurance policies, the title insurance policy is an agreement between the insurer and the policyholder. The insurer will defend the policyholder against lawsuits based on title defects covered by the insurance policy.

The title insurance policy essentially covers the title examination and certification performed by the title insurance company. The covered defects must arise from issues or title elements that were in existence prior to the issuance of the coverage.

Most insurance policies will list exceptions and conditions to its coverage. title insurance is no exception. Title insurers will still issue a policy, even if the title has encumbrances . However, those encumbrances will be listed as conditions to the coverage. Other typical conditions include encroachments, easements and other issues that would be revealed by a survey, when no survey has been provided to the title insurer. Also, the title insurer cannot provide full protection against unrecorded claims or rights to the property by other people.

Unlike standard insurance policies, title insurance is not limited to a specified period. The policy coverage is often good for the entire period of ownership. There are actually several types of title insurance policies available:

• Owner’s policy
• Lender policy
• Residential policy
• Endorsements
• Leasehold policy