10 Potential Title Problems: Read This Before Buying Real Estate

A property title is a very important thing to have in one’s possession. When a home is purchased, title is transferred from the previous owner to the new owner. However, problems can arise if there are some concerns or issues that have been overlooked. Here are ten of the most common title problems.

10. Easements

An easement is where a third party has some right over the use of the property for some specific purpose. The problem arises when there is an unknown easement that hasn’t been made known to the supposed purchaser of the property, or the current owner isn’t aware that an easement exists. Sunnyside-Title Company can help to figure out which easements do and don’t exist over property.

9. Encumbrances

Encumbrances includes easements, as well other restrictions on property, such as licenses and encroachments. Encumbrances are best described as anything that prevents a title from being classified as free and clear.

8. Disputes

Property records are created over time, and they can sometimes present different facts than what is represented in the sale or purchase of property. For example, boundary disputes can easily arise because previous owners may have understood them differently over time.

7. Wills

When wills are created, sometimes they can get lost. This can be especially problematic when a will has the conveyance of a property. In turn, this can put the new owner’s right over the property at risk.

6. Impersonation

There are instances where someone can pretend to be the owner of a home and sell it someone else. This transaction can cloud the title, since the new owner believes that they now own the property, not knowing that the person they bought it from was a charlatan.

5. Forgery

This is where documents have been forged in any way, which also results in the title becoming clouded, putting property rights at risk. In the event of forgery or impersonation, a crime has been committed.

4. Heirs

The usual process of land transfer involves property being passed down from one generation to another. There are instances where there is a missing heir, making it difficult for land to be passed down.

3. Deeds

One would think that a deed wouldn’t be a problem in a conveyance, but it can be. Deeds can sometimes be illegal, such as if they were signed by someone who was under the age of 18 or they weren’t of sound mind when they signed it. In these cases, an issue is created that prevents clear and free ownership of the property.

2. Liens

A lien is where someone makes a claim to property; this usually occurs in specific situations, including a loan or mortgage that was used to secure the home. An unknown lien can create a title problem.

1. Errors

To err is human, and nobody is perfect. Simple human error can create a title problem, such as the misspelling of a name or the wrong number when it comes to acreage.

These title problems are actually more common than you think, so it pays to ensure that the title you have or are receiving through the purchase of property is free and clear of any of the above.