Title insurance protects a title-holder, or owner, from loss related to title defects. It’s an ominous way to say that it helps you protect your property from its past. Both good and bad. These past indiscretions are varied and include: undisclosed restrictions or covenants on the use of the property, documents filed with errors, and otherwise invalid transactions that appear on the chain of title. In reality, you get title insurance and then move forward, but what happens when there’s a defect in the title that isn’t known, or obvious, or listed. Well, here’s a little look at that situation:
The prior owner and the water company had an agreement that the company’s representatives could come onto the property unannounced to read the water meter in the backyard. This is a very common issue and one that is negligibly unmentioned when a property is being transferred to a new owner. A thought would be: “Doesn’t everyone have the water company coming onto their property to read the water meter?” While this is something that might be a “normal” way of checking the meters for clients if you’re unaware of this agreement and look up to find some person in your back yard, rummaging through the bush-fenced yard you will freak out. It’s allowed, this is your property. How did they not let you know about this situation? To begin you will have to go over the information given to you from the title search, which may, or may not, detail any easements. You will also want to have open lines of communication with the seller so that they can further explain what easements they’ve allowed in their time as owner of the property without having it documented officially.
The next decision is whether or not you will need to seek counsel from lawyers. It may seem a bit excessive, but the reality is that it might be a step that needs to be taken. You don’t know what may be contained in the legalese contained in the agreements for any easement. If the easement is temporary there’s no reason to go into battle. If there’s a set completion date or the completion of a specific project that needs to happen for municipal or federal reasons, there would be no need to for you to entangle yourself in a fight over access to your property. Legal representation can be a huge factor in receiving a fair outcome, even if you never go before a judge. Gables Title Group was founded on the principles of helping each of our clients fulfill their dream with a comprehensive, personalized approach to their real estate transaction, from “contract to closing”. Understanding an easement and knowing what arguments can be made against a claim based on the interpretations of the contract’s agreements is something that legal counsel will aid you in understanding. This would even out the playing field between a utility, or federal/municipal, easement and the property owner, with the assurance that all parties are in alignment as to the terms within the agreement. If you’d like Gables Title Group to aid you in your purchase, refinance, or investment in a property we’re here to help you go from contract to closing.
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