We’re feeling like the scene in Love Actually, where you hear, “The trouble with love is…” over a Christmas party. We sing that song and say, “the trouble with titles”. A far-less catchy version, but still totally in tune with the song’s melody and gravity, thank you. Here we’d like to go over a few of the “issues”:
- The property has a lien.
- It’s a 1-2 punch, you’re clearing the seller’s debt, with your altruistic down payment and mortgage loan, and putting your very own lien on the property with the aforementioned mortgage, brought to you by your lender. Not the joyful parade of joy and bliss you were hoping for? There’s more.
- What about encroachments?
- The word sounds bad and makes us think of creepy crawlies, which are disgusting. The word actually is a stand-in for “areas where your land and your neighbor’s land overlap”, also whatever municipal body has a claim to the property. This would mean that property lines are not clearly drawn and you will likely need to have a land survey done to clarify what is yours and what is “shared”.
- Something’s wrong with the public records.
- This could cause financial issues for a title owner. These errors can run the gamut, incomplete documentation, negligence, and filing or clerical errors. This would mean that the current titleholder would be financially responsible for these mistakes, even if they had no hand in the error.
- The inheritance is distributed, or the will was found after the property is sold.
- If the property-owner’s rightful heirs cannot be found or identified the property can be sold. If the heirs learn that the property rightfully belongs to them, though you have been living there for several years, it’ll be a huge problem.
- The last guy was bankrupt.
- This could hold back your closing on a property, or stall it completely. The court would most likely have to get involved and release the property for the sale.
- Unknown encumbrances.
- Having roommates is great, there’s always someone there to talk about life and have dinner with. What if your new roommate who is completely foreign to you is your local electric company’s truck repair department? And they don’t pick up after themselves? Your title policy would uncover other owners that have any claim to your land, detailing what their claim is. (Working with GTG would help you avoid this.)
- Easements mean the property is mine, but also theirs?
- Technically an easement should not leave you in financial crisis or strain. This would cause you, or others, to use your land in ways that you don’t agree with or intend to use it for. (Again, GTG would be happy to give you title insurance to avoid this.)
- Forgeries pertaining to the ownership of your property.
- If any forged documentation is part of your property’s ownership it may endanger your ability to hold title. Fabricated documents, though rare, are possible and you can protect yourself by obtaining title insurance.
Though all of the issues that we presented are worst-case scenarios, working with our Gables Title Group is a benefit for first-time home buyers, residential and commercial investment purchasers, and developers. Our modern streamlined processing, with our ability to close your transaction in person, virtually, or remotely give our clients the ease and flexibility they’re looking for as they move into their future as property owners.
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