A title dispute can arise from various issues, impacting the legality of a real estate transaction. Recognizing common issues that trigger disputes and knowing how to resolve them can help to better ensure a smooth process for all parties involved.
What are common types of title disputes?
Title disputes can occur due to several reasons. Some of the most common include:
- Boundary disputes: These arise when the actual property boundaries on the ground differ from those stated in the deed or existing property records.
- Liens: Previous owners may have unpaid debts that have led creditors to place liens on the property, which can transfer to a new owner if not resolved.
- Fraud and forgery: Disputes can also arise due to issues like falsified documents or illegal transfers of property ownership.
Knowing to look for these potential issues is half the battle. It is important to conduct a thorough title search before finalizing any property transaction. This process should help to uncover any of these potential issues or irregularities with the property’s title, allowing the seller to address the issue before closing the deal.
What if the title search uncovers an issue?
Ideally, the buyer can discover this issue prior to closing. This gives the buyer the opportunity to continue negotiations and work towards a resolution before finalizing the transaction. Potential resolution options can include:
- Title insurance: Offers protection against losses due to title defects, including those that might not be found in a public record search.
- Negotiations: The buyer may be able to negotiate a resolution with the seller, providing the seller with the opportunity to fix these issues so the transaction can move forward.
- Legal action: Buyers could also engage a real estate attorney to review all documents and handle any disputes or anomalies uncovered during the title search.
By addressing these issues early, buyers and sellers can avoid costly and time-consuming legal battles post-transaction. However, it is important to note that legal remedies may also be available even after the parties finalize the transaction. It is wise to reach out to an attorney experienced in this area of law to review your situation and discuss potential options.