Real estate transactions can be exciting for all parties involved, but without proper research and protection, you can find yourself on the bad end of a title issue that could challenge your rights as a homeowner.
Here are a few of the most common real estate title issues and what you can do to protect yourself or prevent them altogether.
1. Undiscovered Liens on a Property
Unfortunately, not every homeowner is as good of a bookkeeper or as responsible at paying bills as you would hope. That means that there’s always a chance that a lender might have a lien against the property. Though it doesn’t mean that the debt owed is now your problem (or anyone else’s), it does mean that the debt must be dealt with before the property can be sold.
If purchasing a home with a lien, you have a few options:
Negotiate with the Lender: Sometimes a lender can be worked with to find a deal that works for all parties.
Short Sale: The seller can perform a short sale to have all the proceeds of the sale go toward the debt.
2. Errors in Public Records
Small errors in public records can have big impacts on your rights as a homeowner. Discovering filing or clerical errors can cause issues with the deed of the property, resulting in what could be large fines to fix the problem.
3. Missing Heirs
In the event of a death, the property typically is handed down to the listed heirs of the previous owner’s will. Unfortunately, sometimes an heir is not listed, the listed heir can be difficult to find, or the family could contest the ownership of the home to take ownership themselves.
This could cause major issues when buying a home or even years after you have already purchased it. Be sure to not only work with a licensed real estate agent who can find these discrepancies, but also to protect yourself from the situation with proper title insurance.
Protecting Yourself with Title Insurance
To protect yourself from financial loss due to any issues with the title of a property, title insurance is a must-have to cover you from:
- Ownership by another party
- Incorrect documents and Record Errors (forgery, fraud, etc.)
- Outstanding Lawsuits and Liens
Each of these issues are common occurrences when buying and selling real estate, but each is remedied by being prepared and having appropriate title insurance before you begin the process.
To learn more about what you can do about liens or how title insurance can help protect against financial damage from liens, get in touch with one of the title and escrow specialists at Plymouth Title Guaranty Corporation.
Please note: The safety of our staff and clients is our highest priority. Effective immediately, Plymouth Title Guaranty Corp. will be taking the following precautions to limit the spread of the COVID-19 virus:
All purchase transactions need to take place at a Plymouth Title Guaranty Corp. closing office
- If a party to the closing is not feeling well, please contact your closer prior to the closing so appropriate precautions can be taken.
- We ask visitors to utilize the restroom in our building upon arrival to thoroughly wash hands before entering our office.
- Only individuals required to sign and/or deliver documents at closings will be allowed in our office. Specifically, closings will be limited to borrower(s), seller(s), agents, and lenders.
- All pens used in the closing will be given to the client after use.
- All closing rooms will be cleaned and disinfected in-between each closing.
- Those picking up checks at our office will be instructed to call our main line and request to speak to a staff member who will plan for delivery to the lobby or parking lot of our office.
- All staff will refrain from shaking hands before or after closings and ask clients do the same.
Please be advised that our staffing may be impacted during this unprecedented event. While we are committed to continuing to provide outstanding service, we ask for your patience in the face of this pandemic.