Common Types of Property Title Defects

Like every person has a history, every property has a history. Title insurance is meant to be a layer of protection from any bad history that could try to come back and claim rightful ownership or possession of your property. If your title company says there’s a problem and cannot extend your title insurance coverage based on the title search, you should find out what needs to be done or clarified so you can get the clean title of the property. A few property title defects are:

Unknown Liens

Say, the owner of the property owed money to a financial institution or creditor. Those entities would put a lien on the property, though it is not your debt it follows the home or property. You would not be able to get a clean title for the property unless the said debt is repaid or waived.

Unknown Heirs and Wills

An owner passes away and leaves no will or heirs, but years later a will materializes and so do heirs. This occurrence is addressed in title insurance, if the title search reveals any gray areas the title insurance would not be granted.

Forgery

The occurrence of this would be difficult but has happened. A document filed within the public records that aren’t kosher would preclude you from receiving title insurance.

Boundary Disagreements

Your home has been surveyed from every angle… however, past surveys may draw the boundary between you and your neighbor’s properties differently. This would mean someone else, a neighbor, could claim part of your property for themselves.

Easements of the Past

Your potential property has the cutest walkway, but neighbors cut through it as if it were a public area. That’s not really a welcome thing. This is an easement. You’ll likely have to talk to neighbors about this issue or figure out how to make it a less attractive passage for them.

If you have any questions or would like to get title insurance of your own, give our team, Gables Title Group, a call at (877) 278-5566. You can also visit us online GablesTitleGroup.com.