Having a clear title is an essential part of purchasing real estate. One that’s not clear can result in complications that delay the sale and even jeopardize it altogether.
Anticipating some of the most common title issues can help you to avoid them. Here are some important points to consider.
Outstanding liens
One of the first things you want to do before purchasing a property is check for unpaid liens or mortgages. Some creditors are entitled to claim against properties, rather than individuals who racked up the debts. If a previous owner took a loan against the house, the debt could technically transfer to the new owner.
Boundary issues
A clear title means having properly defined boundary lines. Disputes over boundaries between neighbors or others are a title issue that can result in lengthy and expensive disputes.
Administrative errors
Original records for properties are usually stored in local government offices. While simple clerical errors may be easy to rectify, that isn’t always the case. Administrative mistakes can create an unclear title. When important documents go missing, this can be a serious issue.
How to protect yourself as a buyer
There are several ways you can protect yourself as a buyer. First, you should conduct due diligence before going ahead with a transaction. You may also want to consider taking out title insurance from a reputable insurer.
Buying your next home can be very exciting and rewarding, but it’s important not to let an issue with the title get in the way. Seeking experienced legal guidance can help you navigate the process.