Futterman, Sirotkin And Seinfeld, LLP
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Five common title issues to look out for before closing

On Behalf of | Jul 12, 2022 | Real Estate |

Before you buy or sell a home, it is important to have a basic understanding of any title issues you face so they can be resolved appropriately. Understanding common property title issues is the first step in reaching a resolution.

Clerical mistakes

Some title issues are simply clerical errors. There may be a typo or omission in the deed regarding ownership or the property. If so, the errors need to be fixed and the deed to the property will have to be filed again before you can close on the property.

Unresolved liens

Sometimes there is a lien on the property, meaning a third party has an ownership interest in it. For example, if the seller did not pay their taxes, the government can put a lien on the property that cannot be taken away until the seller pays what they owe. Property with a lien on it cannot be sold.

Vague boundaries

The boundaries of the property being sold must be clearly defined in the title. If the boundaries are vague or outright incorrect, a neighbor or other entity might have an ownership interest in the portion of property that encroaches onto their land. This must be resolved before the property can be sold.

Illegal acts

Sadly, illegal act can create a title issue. For example, a previous owner of the property might have lied on the deed, forged a signature or committed another act that renders the title illegal. If left unresolved an illegal title can prevent you from closing.

Who is the heir?

If the seller passes away before closing, their heirs might try to claim an ownership interest in the property through their inheritance. Or heirs might contest between themselves who, under the seller’s will, is the rightful heir. This can cause a title issue that must be resolved before closing.

Professionals can help resolve title issues

If you are buying or selling a home and there is an issue with the title, you can seek help from a real estate attorney. These professionals can work to resolve title issues, so you can close on the property.