Common TITLE PROBLEMS
Your home may be new to you , but every property has a history . A thorough title search can help uncover any title defects tied to your property . And , subject to the terms of the policy , your title insurance provides protection for you from title problems that may become known after you close your transaction . Common title issues may include :
ERRORS IN PUBLIC RECORDS To err is human , but when it affects your home ownership rights , those mistakes can be devastating . Clerical or filing errors could affect the deed or survey of your property and cause undue financial strain in order to resolve them .
UNKNOWN LIENS Prior owners of your property may not have been meticulous bookkeepers – or bill payers . And , even though the former debt is not your own , banks or other financing companies can place liens on your property for unpaid debts even after you have closed the sale . This is an especially worrisome issue with distressed properties .
ILLEGAL DEEDS While the chain of title on your property may appear perfectly sound , it ’ s possible that a prior deed was made by an undocumented immigrant , a minor , a person of unsound mind , or one who is reported single but in actuality married . These instances may affect the enforceability of prior deeds , affecting prior ( and possibly present ) ownership .
FORGERIES Unfortunately , we don ’ t live in a completely honest world . Sometimes forged or fabricated documents that affect property ownership are filed within public records , obscuring the rightful ownership of the property . Once these forgeries come to light , your rights to your home may be in jeopardy .
UNDISCOVERED ENCUMBRANCES When it comes to owning a home , three can be a crowd . At the time of purchase , you may not know that a third party holds a claim to all or part of your property – due to a former mortgage or lien , or non-financial claims , like restrictions or covenants limiting the use of your property .
UNKNOWN EASEMENTS You may own your new home and its surrounding land , but an unknown easement may prohibit you from using it as you ’ d like , or could allow government agencies , businesses , or other parties access to all or portions of your property . While usually non-financial issues , easements can still affect your right to enjoy your property .
MISSING HEIRS When a person dies , the ownership of their home may fall to their heirs , or those named within their will . However , those heirs are sometimes missing or unknown at the time of death . Other times , family members may contest the will for their own property rights . These scenarios – which can happen long after you have purchased the property – may affect your rights to the property .
BOUNDARY / SURVEY DISPUTES You may have seen several surveys of your property prior to purchasing , however , other surveys may exist that show differing boundaries . Therefore , a neighbor or other party may be able to claim ownership to a portion of your property .
UNDISCOVERED WILL When a property owner dies with no apparent will or heir , the state may sell his or her assets , including the home . When you purchase such a home , you assume your rights as owner . However , even years later , the deceased owner ’ s will may come to light and your rights to the property may be seriously jeopardized .
FALSE IMPERSONATION OF PREVIOUS OWNER Common and similar names can make it possible to falsely impersonate a property owner . If you purchase a home that was once sold by a false owner , you can risk losing your legal claim to the property .
PLAY IT SAFE These and other issues are often covered by an Owner ’ s Policy of title insurance . When you buy a home , make sure you ’ re protecting that investment with title insurance .