10 Common Title Problems
What is Title Search
A title search is a meticulous investigation that delves deep into a property's history and legal standing. Here's a breakdown of the key components involved:
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Property Ownership History: This traces the lineage of ownership, ensuring that the property has been legally transferred and sold over the years.
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Liens and Encumbrances: Any financial claims or liens against the property, such as unpaid taxes, contractor liens, or mortgages, are identified and must be resolved before a clear title can be transferred.
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Easements and Restrictions: Easements (rights for others to use a portion of the property in a specific way) and other restrictions can affect your use of the property. Knowing if any exist and their specifics is essential.
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Legal Judgments: Any legal judgments against the property or the current owner that could affect the title are brought to light, including pending legal actions or bankruptcy proceedings.
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Errors in Public Records: Mistakes in the public record, such as incorrect names or property descriptions, can cause significant issues. A thorough title search will identify and help rectify these discrepancies.
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Covenants, Conditions & Restrictions (CC&Rs): are legal agreements that dictate how a property can be used and maintained. They are commonly found in planned communities, condominiums, and homeowner associations (HOAs)
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Expired Rights: Sometimes, previous owners might have granted rights to third parties, like mineral or timber rights. A title search will determine if these rights have expired or if they’re still in effect.
10 Common Title Problems
1. Errors In Public Records
Public Record Errors Human errors in public records can have serious consequences for your property ownership. Mistakes in deeds or property surveys might create unexpected financial challenges to resolve.
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2. Unknown Liens
Unpaid Liens Previous owners may have left behind unpaid debts, leading to liens on the property. Even though these debts aren’t yours, creditors could still place claims on your property, especially in the case of distressed properties.
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3. Illegal Deeds
Invalid Deeds A deed may appear valid but could involve issues, such as being executed by a minor, an undocumented individual, someone of unsound mind, or an incorrectly stated marital status. These factors could undermine the legality of past deeds and impact ownership rights.
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4. Missing Heirs
Missing or Contested Heirs Heirs or beneficiaries may be overlooked or undiscovered during estate settlement, and disputes over wills can arise even after you purchase the property, potentially affecting your claim to it.
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5. Forgeries
Forgery Fraudulent property documents can create serious ownership complications. If forgery is discovered later, your rights to the home may come into question.
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6. Undiscovered Encumbrances
Hidden Claims Unknown third-party claims, such as unresolved mortgages, liens, or restrictions, might surface after purchase, creating obstacles to full property ownership.
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7. Unknown Easements
Undisclosed Easements may allow others, such as government agencies or utilities, access to your property, potentially limiting your ability to use it as desired. While non-financial, these can impact enjoyment of your home.
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8. Boundary/Survey Disputes
Survey Discrepancies Survey conflicts may arise, with differing boundary lines leading neighbours or others to contest ownership of portions of your property.
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9. Undiscovered Will
Previously Undiscovered Wills If a deceased property owner’s will is found after you’ve purchased the home, it could threaten your ownership, as rightful heirs may lay claim to the property.
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10. False Impersonation of Previous Owner
Impersonation of Owners Fraudulent sales by individuals impersonating property owners can jeopardize your legal claim to the home if discovered after purchase.