Buying or selling a home is exciting, and you’re looking forward to beginning a new chapter in your life. But even when everything seems on track, unexpected problems can delay or completely derail your closing.
Title issues are more common than many people realize, and if they aren’t resolved, you can’t move forward with the closing.
Why title issues matter
A “title” is your legal ownership of a property. The law requires a seller to provide a clear and marketable title before they can legally transfer the ownership. Therefore, a title search is required. If any discoveries call into question ownership or create a legal or financial claim against the property, those title issues need to be resolved before closing.
Liens are among the most common problems in real estate transactions. These can include:
- Unpaid property taxes
- Contractor or mechanic’s liens
- HOA or condo association fees
- Judgments against the property owner
Even if the seller wasn’t aware of any liens, they must be paid off before the closing can occur.
Clerical errors also happen more often than you’d think. Mistakes such as misspelled names, incorrect legal descriptions or filing errors in prior deeds may seem like minor issues. However, they can create significant legal confusion about who actually owns the property.
Oftentimes, a property is on the market because the previous owner passed away. If the estate wasn’t properly handled, heirs may still have a legal claim to the property. Incomplete probate or out-of-state heirs can complicate the property’s sale.
Fraudulent deeds and forged signatures can also create major problems. Florida has seen an increase in“title pirates” in recent years, particularly involving vacant properties.
Title issues can turn a real estate transaction into a stressful and costly ordeal. If a problem arises, it’s essential to act quickly. A legal professional can help identify the problem, resolve disputes and protect your investment.