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Title issues can snag your home closing

On Behalf of | Nov 16, 2021 | Real Estate Law

Several things could cloud the title of your home. For instance, a contractor may have placed a lien for unpaid bills or if your ex-spouse forgot to remove a child support lien on the house. Those are just two of the many scenarios where the title to the home may not be clear, and it can bring about issues when you decide to sell it. So if you are not sure you have a clear title, you need to work out that bit.

For a potential buyer, getting financing for a home with title issues is close to impossible. This is because lenders tend to avoid problems that could affect the value of the property or their ability to foreclose. While buyers can choose to take on the risk of purchasing such property with a title that is not clear, it is generally not advisable. They could end up losing a lot of money or even the whole house.

Clear any issues with the title beforehand

Title issues can also arise during a property survey which can include neighbor disputes over boundaries. As much as it is possible to sell, the buyer will be left dealing with issues they may not have been aware of. Therefore, it is advisable to clear any clouds in your title before selling a home. With a clear title, unexpected liens or other issues will not be a problem.

Although some buyers can opt to ignore the risks, having a clear title opens you up to more buyers. You may even get a better deal with a clear title. If you suspect that there are issues with your title, it is essential that you take the proper steps in rectifying the situation and ensuring you have a marketable title for your home.