Whenever you close on a real estate deal, you want to make sure you have a clear legal title to the property. Occasionally issues and disputes arise that cause unexpected complications.
Familiarity with these possibilities could help you successfully respond to the situation.
Common title issues
Information from Deeds.com reveals that a title search can identify several issues that could result in title problems for the buyer or the seller. Mortgage liens refer to any underlying mortgage that still exists on the property. This prevents the issuance of a clear title. It could lead to foreclosure proceedings for a property you just bought, even though you had nothing to do with the debt.
Judicial liens refer to court judgments placed on a mortgage, such as a requirement to pay off unpaid spousal benefits or child support payments. This could impact the timing and the ability of the sale. A thorough title search could discover the lien no longer exists or that the selling party must make a payment to satisfy the judicial lien. Either way, as the buyer of the property you want to make sure the lien will not impact your transaction.
Addition title concerns
Encroachments and easements could also adversely affect the value of a property, You have a right to know what easements attach to a property and if they come with financial obligations such as road maintenance or sewer assessments. An easement could also prevent you from making important improvements to your new property, such as putting in a swimming pool.
When it comes to your real estate title, information remains critical. You should understand that a title dispute could disrupt a real estate transaction.