What is typically not covered by owner's title policy?

An owner's title policy is designed to protect homeowners from various issues related to property ownership that were not identified during the title search process. However, certain items are generally excluded from coverage. Unrecorded liens are typically not covered under an owner's title policy because they are not part of the public record and therefore cannot be discovered during a reasonable title search. This means that if a lien exists but has not been formally filed or recorded, the owner may not be protected against claims related to that lien.

In contrast, restrictive covenants, boundary disputes, and conveyance of mineral rights often fall under the umbrella of the title policy's coverage, as these issues are either related to rights and obligations recorded in public documents or could potentially be identified during the title search. It’s essential for potential buyers to understand the limits of the protection provided by an owner's title policy, emphasizing the significance of thorough due diligence before purchasing real estate.