There are a lot of details to manage when it comes to buying a home. Some can be easy to overlook until something goes wrong. For example, if you are looking to purchase a home, the thought that the seller does not have the legal authority to transfer ownership to you may never cross your mind until a title issue threatens the closing.
What type of issues could arise?
Something that could adversely affect or impair a homeowner’s title is often called a cloud on the title or defect. Some examples of these issues can include:
- An improper deed
- Liens on a title
- Property or boundary survey disputes
- Mistakes in public records
These and other title complications can delay or even compromise a closing. Some title-related matters require research, time and court proceedings to resolve the issue. Depending on the specific circumstances of the transaction, parties may ultimately not close the sale.
Tips to resolve these problems
There are numerous options to remedy the title issues that could be standing between you and buying a home. One essential step can be to perform a title search. This search through public and court records can help you (or the lawyer you are working with) uncover any defects, suspicious activity or unresolved issues before it is too late.
You can also choose to purchase title insurance, which protects parties from a wide range of title-related losses.
Other solutions involve legal processes like quit claim deeds and quiet title actions.
When you are buying a home, your focus is rightly and understandably on elements like location, cost and finding a house you love. Logistical details related to the history of property ownership may never cross your mind. However, knowing that these issues can arise and understanding the options for addressing them can help you prepare accordingly and make informed decisions.