When purchasing real estate, a clear and undisputed title is essential to ensuring that the property is legally yours and free of complications. However, real estate transactions often uncover title issues that can delay or even derail a sale. Whether you’re buying a commercial property or a residential home, understanding common title problems and how to resolve them can save you time, money, and headaches.
Here are the top four title issues that frequently arise in real estate transactions and how they can be resolved.
1. Unpaid Liens
A lien is a legal claim against a property that acts as security for a debt. If the previous owner failed to pay certain debts, such as taxes or contractor bills, those liens could be transferred to the new property owner. Even if you’re unaware of these unpaid liens at the time of purchase, you could be held responsible for them.
Resolution: Before closing on any property, conducting a thorough title search is essential. This search will reveal any existing liens. To resolve unpaid liens, negotiate with the seller to pay off the debts before finalizing the transaction. Title insurance can also protect you from unknown liens that arise after closing.
2. Boundary Disputes
Boundary disputes occur when neighboring property owners disagree about the location of property lines. This can lead to conflicts over the use of certain parts of the land, such as driveways, fences, or shared spaces. Boundary disputes often arise due to outdated surveys and unclear property descriptions or when property lines have become blurred over years of practical use.
Resolution: Hiring a professional surveyor to create an updated, accurate survey of the property is key to resolving boundary issues. If a dispute with a neighbor remains, mediation or legal action may be necessary to formally establish property boundaries. Title insurance can again help cover the cost of defending your property rights in boundary disputes.
3. Errors in Public Records
Clerical errors or mistakes in public records can create confusion over property ownership. These errors might include incorrect property descriptions, misspelled names, or inaccurate legal documents. Even small mistakes can cause significant delays in real estate transactions or result in challenges to your ownership.
Resolution: Correcting errors in public records usually requires filing new, accurate documents with the county or municipal office responsible for maintaining property records. While these errors can be time-consuming for an individual to fix, a title company or real estate attorney can assist in identifying and fixing these issues during the title search process.
4. Undisclosed Heirs
In cases where a property owner passes away without a will, or if heirs are not clearly identified, undisclosed heirs may later claim ownership of the property. This can create legal disputes that complicate the transfer of ownership. If heirs surface after you’ve purchased the property, they may challenge your legal ownership.
Resolution: To avoid this issue, conducting a probate check during the title search is important. This step helps confirm that all rightful heirs have been accounted for. If undisclosed heirs emerge after the purchase, a quiet title action—where the court clears up the ownership dispute—may be necessary. Again, title insurance can also protect you from claims made by unknown heirs.
Protect Yourself with a Title Search and Insurance
If you haven’t noticed so far, the best ways to protect your investment are through a comprehensive title search and by securing title insurance. By identifying potential issues early in the process, you can avoid costly legal battles or delays in your real estate transaction. At Guida Law Offices, we specialize in resolving complex title issues, ensuring that your real estate purchase is smooth and secure.
If you’re buying property in West Virginia, Ohio, or Pennsylvania, contact us today to learn how we can help with your title search and real estate transactions.