Polish case studies
The land registry systems may work differently to those in Western Europe. Just because an entity is registered as the owner of the title does not guarantee that they own the land and there is insufficient or no state indemnity if the entries are incorrect.
There is uncertainty as to the extent of checks carried out by notaries and there is always the threat of a restitution claim, as there is no conclusive search that can be undertaken to check whether there is a pending claim. Due diligence on historical title information often reveals breaches of legislative procedures or corporate defects which could invalidate previous transfers and lead to the title being challenged and possibly overturned.
Sellers' warranties are often of limited value and lawyers' due diligence can prove inconclusive on certain title issues. First Title provide a no fault insurance solution for a number of title defects and the general coverage provided by its policies can provide peace of mind for those title issues that cannot be identified during the due diligence process.
Title insurance can streamline the due diligence process and provide a fast and cost effective solution to title problems. Title insurance has been the first choice for many investors, lawyers and lenders which is proven by the fact that last year First Title insured 10 billion euros worth of property in Europe.