Verifying an undisputed title is crucial when purchasing property. The title confirms that the seller has the legal right to transfer ownership to the buyer. However, various title defects can complicate this process, possibly leading to delays and legal challenges.
Understanding these common title issues and how to resolve them is vital for anyone involved in real estate transactions.
What Are Common Title Defects?
In our vast experience, title defects can arise from numerous issues, ranging from simple clerical errors to complex legal disputes.
One of the most frequent problems is liens against a property. Liens are claims against the property due to unpaid debts of the previous owner, such as taxes, contractor fees, or judgments from lawsuits.
Another common issue is easements or servitudes, which grant a third party the right to use a portion of the property for a specific purpose, for instance, utility access. These can restrict how the new owner may use the property.
Boundary disputes over properties also pose considerable challenges. They arise when there is uncertainty or disagreement about the property borders. These disputes often occur due to conflicting surveys or undocumented changes to the property boundaries.
Errors in public records, such as incorrect names or legal descriptions, can create confusion over property ownership. Additionally, undisclosed heirs can contest ownership when a previous owner dies without a well-defined will, leading relatives to claim ownership.
Finally, fraud and forgery of documents, like being illegally created or altered, can lead to severe disputes over the rightful ownership of a property.
How To Resolve Liens and Judgments?
An experienced legal advisor will know how to resolve liens and judgments. In most cases, legal support is advisable for a smooth property transfer. The first step is identifying the lien during a title search, which reveals existing claims, such as unpaid taxes or contractor fees. Following identification, the claim must be settled through negotiation with the creditor.
When settling the obligation, the creditor issues a release of lien, a formal document attesting to the satisfaction of the encumbrance. The following step involves negotiating with the creditor to settle the debt by paying it off in full or agreeing to a reduced settlement. After settling the debt, the creditor issues a release of lien, a legal document confirming the reparation of the claim.
This release must be recorded with the County Recorder’s Office to clear the title officially. Addressing liens and judgments releases the property to be sold or transferred without any outstanding claims.
What Can Be Done About Easements and Restrictions?
Easements and restrictions – a legal right that grants an individual (or a company) permission to use a portion of another person’s property for a specific purpose can significantly impact property ownership and use. To address these issues, we find it essential to thoroughly review the easement to understand its nature and scope, including who holds it and what it allows.
In some cases, it may be possible to negotiate modifications with the holder, such as altering the terms to make them more favorable or removing the servitude entirely if both parties agree.
If an easement or servitude creates substantial problems, legal action may be necessary to seek modifications or removal.
How Are Boundary Disputes Settled?
Boundary disputes can be a significant issue for property owners. Resolving them typically involves several steps:
- Obtain a Survey: A professional property survey helps determine the property’s exact boundaries.
- Review Property Deeds: Comparing the deeds of the conflicting properties clarifies the original boundaries.
- Negotiate with Neighbors: Discussing the issue with neighboring property owners can lead to an amicable agreement.
- Mediation or Arbitration: These methods offer alternative dispute resolution without going to court to reach a title settlement.
- Legal Action: If the parties cannot agree, legal action may be necessary to resolve the dispute.
Promptly addressing boundary disputes is essential for maintaining clear and undisputed property lines.
How Are Errors in Public Records Corrected?
The first step in addressing these errors is identifying the specific mistake, which could involve incorrect names, legal descriptions, or improperly recorded documents. Once identified, your legal advisor must gather the relevant documents and evidence highlighting the error. A corrective document, such as a deed or affidavit, is then prepared and filed with the appropriate government office to rectify the mistake. Following up with the office ensures an accurate update of the record.
What About Missing Legal Documents?
Lost legal documents can create significant complications in establishing an unencumbered title. This often happens when previous property transfers or legal transactions are not adequately recorded.
New owners must conduct a thorough title search to identify gaps in the ownership chain. It’s elementary to locate or reconstruct lost documents, which may involve contacting previous owners or their heirs and sometimes engaging in legal proceedings to confirm ownership.
Get the Help You Need
Title defects can pose significant challenges to property transactions, but understanding common issues and their resolutions can mitigate risks. Whether dealing with liens, easements, boundary disputes, or errors in public records, taking proactive measures to address these defects ensures a smoother transfer of property ownership. Title insurance agents can help you avoid common pitfalls of title defects.
Contact our agency today if you need to tap into our expansive experience to help resolve title defects.