Title Issues
Have you recently closed on a home or are in the process of doing so? Even though the house is new to you, you should be aware that it has a history. Title concerns are widespread, which is why it is critical to complete a title investigation and obtain insurance before purchasing a property.
Read below to find out some of the most common title issues so that you can be informed and catch any red flags before it’s too late.
Common Title Problems:
1. Boundary Disputes
This can occur when a property owner infringes on the rights of their neighbor by constructing on land that is not legally theirs. It could indicate that property lines are not clearly established, requiring you to determine who owns what.
2. Lien on the Property
Even if there is a new owner, a bank may still place a lien on a property if the prior owners owed money. This is more common in distressed properties since if the owners did not take care of their home, it is more probable that they did not pay their expenses as well.
3. Unknown Heirs/Undiscovered Will
A residence may have had a prior owner who drafted a will naming legitimate heirs. If they died without informing their heirs, this could cause problems in the future. When the heirs learn of their inheritance, they may come knocking on your door, surprised to discover that someone else is residing in the residence.
4. Public Record Errors
This happens as a result of filing mistakes, inadequate documentation, or neglect. Mistakes happen, but you don’t want to be the one who pays for them. In this instance, title insurance is critical to safeguard your ownership rights from errors and public record faults.
5. Bankruptcy from a Previous Owner
If the prior owner of the house declared bankruptcy, it may present complications for the new owner. The closing procedure can be lengthy since you will almost certainly need to petition the court to have the property released for sale.
6. Illegal Deeds
If someone committed an illegal act in the past, it may still have an impact on current owners. When a prior deed was committed by a minor, an illegal immigrant, someone who lied about their marital status, or someone who was mentally unstable, this occurs.
7. Forgeries
Unfortunately, not everyone in this society is honest and can falsify or fabricate documents that are filed in public records. If these are uncovered later, your right to own a home may be jeopardized.
8. Unknown Easements
Even if you own your property and the land around it, an unclear easement could limit your ability to use it. It may also offer some businesses or government organizations access to particular areas of your land.
9. Undiscovered Encumbrances
A third party may appear and claim ownership of some or all of your property. This could be due to a previous mortgage or lien, as well as restrictions that limit your property’s use.
10. False Impersonations by a Previous Owner
To imitate the genuine owner of a residence, common or similar names could be utilized. If a fictitious owner sells their home to you, the title to the property may be lost, and you may lose your legal rights.
Work with a Trusted Professional
There are numerous title concerns that might arise when purchasing a home. It might be stressful, and you may be unsure of what to do next.
Working with a trustworthy professional who has your best interests in mind is the greatest way to defend yourself and your rights. They can assist you in obtaining title insurance and doing a full title search on the property.
If you are looking to get a second opinion on whether or not you should close on a home, contact Snap Cash Buyer today at 206-334-8540. We are trusted cash home buyers in Tacoma, Washington and would love to help you out!
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