Seemingly small issues can have a major impact on real estate transactions. The sellers can accept a reasonable offer, and a buyer can secure final approval for a mortgage, only to have title issues affect the closing timeline.
Sellers sometimes don’t realize before they list their homes on the market that there might be title issues. Securing title insurance is a key component of any real estate transaction involving a mortgage. If there are title defects, that could delay the issuance of the policy and therefore the closing.
What steps can sellers take to resolve title challenges and move forward with a transaction?
Executing a deed
Title records exist in no small part to clarify who has an ownership interest in a specific property. In some cases, it may be necessary to update inaccurate title records by recording new deeds. An owner might need to track down former co-owners as part of that process. Deeds can often help update title records and allow a real estate transaction to move forward.
Requesting quiet title proceedings
Perhaps a former owner erroneously listed on title is dead. Maybe there is an easement or a lien showing up that shouldn’t be there. In cases where a deed cannot quickly resolve a title issue, attending a quiet title hearing could be the best option available. Judges can review title records and make updates that reflect the current property circumstances. Moving quickly to address title defects can prevent a real estate transaction from completely falling apart.
Timing can be a key component of any residential real estate transaction. The sooner sellers take care of title issues, the less likely these concern will be to complicate a transaction.