An insurer will not insure what has not been surveyed. A boundary survey is important because it is the only way of knowing whether a building on the subject property encroaches on a neighbor's property, or whether a building on the neighbor's property encroaches on the subject property. Once a boundary survey is performed this standard exception is deleted, and replaced by the information supplied by such a survey. These defects are unforeseen and often to undetected for years. They include such things as missing heirs, forged or defective deeds, clerical or recording errors, or outstanding judgements, liens, mortgages or taxes.
Title insurance is available for both the lender and the purchaser.
This insures the lender for the amount of the loan. This policy covers the lender until the loan has been fully satisfied. This insurance is required by most lenders. This insures the owners for the amount of the purchase price for as long as they own their home. A test for radon gas or other environmental factors may be worthwhile at this time.