After you find your dream home or property, there are still plenty of important tasks to do. One of the most important things that will happen between your accepted offer and closing is a title search, which could reveal some previously unknown issues with your potential new home. Here are three common title conflicts and how you can resolve them.
1. Unknown liens
Although the sellers should be aware of and disclose any liens against their property, it doesn’t necessarily mean that they will. It’s not odd for a title search to reveal unknown liens. What this means is that at some point in time the owner borrowed money and used the property as collateral.
The bank now has a note that they are entitled to the property if the borrower fails to repay the loan. Even if the property has been sold to you, the bank is still entitled to repayment. This means if you don’t handle this issue before closing, the bank will want you to repay the loan.
If your title search reveals an unknown lien on the property, you can attempt to resolve the issue with the property seller through mediation with the realtors. However, if no resolution is reached, you can contact a lawyer.
2. Illegal action
Whether there has been forgery, false impersonation, or another illegal action, it’s not uncommon for some sort of illegal activity to be discovered during the title search. When illegal action is uncovered, it can impact ownership even for the present owner. For example, if the previous owner was of unsound mind and sold the property to the current owners, it’s possible that family members of the previous owner might be unaware of or opposed to the sale. Because it’s illegal for someone of unsound mind to make such legal transactions, neither you nor the current owners would actually be able to legally own the property.
Some situations of illegal action can be quite confusing, so it’s best to contact a lawyer if you are notified of this infringement on your title. A qualified lawyer can help you decide how you want to proceed.
3. Easements and boundary disputes
One of the benefits of a title search is having the title company research the legal description of your property. This process can tell you the exact measurements of your lot, as well as if there are any easements or recorded boundary issues.
Easements are tracts of your lot that may be used by certain entities without your consent. For example, it’s not uncommon for lots to have utility easements. These easements give utility crews the space to make necessary repairs to keep your services running. However, they do not need to ask your permission to enter your lot and they have the right to drive service trucks or dig wherever necessary within the easement. You definitely want to know about any easements before landscaping or building on your lot.
When handling either easement or boundary disputes, you should consult with your lawyer. Some easements that are not currently used might be able to be legally removed from your property. Similarly, disagreements about the boundaries of the lot can normally be settled with help from a lawyer.
Do You Have Questions About Your Title Search?
Sometimes, title searches can reveal interesting results. If your title search has discovered some potentially troubling information, contact Pence Law Firm, P.C. Our experienced lawyers can help you handle your real estate dispute. Call our office today at (918) 367-8505 or contact us online to learn how we can help.