A title is a crucial document of a property. When you buy a home, you will be issued with this legal document to show ownership of the property. And you will also provide it when selling the property.
However, you may experience title problems during any of these transactions. Below are two examples:
1. Public record errors
Errors on a title relating to misspelling the name of the property owner, misspelling the street name of the property, incorrect measurements of the property or missing information are not uncommon. That’s why it’s crucial to perform a title search to learn more about a property’s legal ownership, its specifics and history.
2. Liens
Another title issue that can complicate the buying or selling of a property is the existence of liens. Examples of liens on a property include unpaid mortgage payments (mortgage lien), unpaid property taxes (tax lien), unpaid payments to builders, contractors, and subcontractors for the building or renovation of a property (mechanics lien), a lien created when a creditor wins a lawsuit against a property owner and records the judgment against the property (judgment lien) and so on.
These liens can remain attached to a property for years even if the property changes hands. Thus, buyers should conduct a thorough title search before making any decisions. You don’t want to buy a property that is still attached to a lien, as it can be repossessed by a creditor.
A seller must pay off their debt or promise the creditor that they will pay it off with proceeds from the sale. If a seller chooses the latter option, they should provide you with evidence that the lien should be removed.
These two are a few examples of title issues. If you want to clear a complicated title, consider legal guidance for a more manageable process.