Whether you are a first-time buyer or have been involved in several real estate transactions, it is essential you are aware of different kinds of issues that can arise during the process. In most cases, disputes occur pertaining the title of a property that can lead to headaches and delays in resolving the matter before closing. If not pursued with diligence, these issues can become a source of liability for you, as there may be several legal implications associated with it. It is best to work with an experienced real estate attorney who can thoroughly evaluate any title issues and oversee the real estate transaction to ensure you are safe from any legal repercussions.
Common Property Title Issues
- Previous Ownership Claims: When a homeowner passes away, the ownership of their home may go to a beneficiary named in their will or an heir, if there is not an estate plan. In some cases, that person is not found, and the property is sold. However, title issues arise when that person comes out of nowhere and makes a claim on the property that have been rightfully given to them by the previous owner.
- Liens: If any of the past owners were in debt, there would be a lien placed on the property. It is essential to make sure that liens have been settled before you buy the property, or else the lienholder may cause trouble for the unsettled debt.
- Boundary Disputes: Every piece of property has a precise description of its boundaries in its deed. Oftentimes, owners and neighbors make verbal agreements, which may become a dispute down the line, if you are not aware of them.
- Filing Errors: Some title issues involve discrepancies in the chain of title passing. This may arise from a filing error, which should be resolved before buying the property to clear its title. Moreover, a change in description or a typographical error can also lead to potential issues.
- Easements: Homebuyers are often not made aware of easements, but it is important to discover them early on to avoid any problems. Easements generally put certain restrictions on how a property should be used. It could also give permission to a government agency or business to access specific parts or the entire property.
- Encumbrances: Due to a previous covenant, lien, or mortgage, it is possible for a third party to make a claim on the property. You need to ensure that any such encumbrances are sorted out before the closing.
How a Real Estate Attorney Helps with Title Issues
When you hire a real estate attorney, they perform a title search and review a number of documents related to the property. This allows the attorney to evaluate any potential issues related to the property’s title. Your attorney may review the following during the title search:
- All public and court records
- Legal descriptions
- Liens or other claims
- Property tax records
- The chain of title
If you want to ensure the title of the prospective property is clean, you should contact Casement Group, P.C. today at (847) 888-9300 to discuss your case with an experienced and reliable attorney.