Some common property title issues that can delay your closing: A guide for homebuyers
A new home will become part of your life story, but the home you are buying has its own particular story. You may be left on a cliffhanger if you have unresolved issues with the home title or documents that denote who has legal ownership. It can create significant setbacks for the sold or bought property. Some unpaid divorces, debt, property line of arguments or also a typo in the property records can make it unclear who is the legal owner of the house. These issues can be resolved before the seller can transfer the ownership of the home to a particular buyer. Below are certain things you need to look out for when a title issue arises.
Some common title issues
Various obstacles can stand in the way of clearing title transfer from the seller to buyer.
Recorded error in the public domain
Problems can arise when they make mistakes in any other legal document that spells out the specific details of the property and the ownership. If there is missing information or if there is clerical misinformation, you can fix it, and the deed has to be refilled before the closing can happen.
Liens
If or when the seller has certain unpaid taxes or debts, the bank or the government business that they are indebted can place a lien on that particular property. It simply means that whoever owns the money puts a legal claim of having ownership on the title of the home; usually, you cannot remove the lien until you repay the debt.
Fraud and forgery
The former owner may have documented the title illegally. This could be the case if, for example, the deed includes a minor, a person of unsound mind, a married person who claims to be single or any undocumented immigrant. Find out a reputed title insurance company that can handle and resolve your disputes.
Missing heirs
Ownership disputes can arise on any property if the owner dies before selling the home. Additionally, the family members who are missing when the person dies eventually might step forward after some time to clean the inheritance, or they might even contest the owner’s will to take ownership. The owners could also have been missing, and then they might discover the right before closing with all these stipulations about who rightfully will own the property. It leads to a series of confusions.
Ways to fix the title issues
Title companies are so-called 3rd parties who will identify and then resolve the issues related to property title during the closing process of the mortgage.
It takes a lot of legal work to ensure there are no title issues before the closing times. The title insurance company will conduct research, and they will look up any public records that might exist on the property. It is necessary to use research related to land restrictions and other issues that might also get in the way of completing the sale process of the property. An exhaustive search of the public records is essential to be conducted by the title company to look for any debts, errors, inaccurate property details or bankruptcies.
