These Common Title Issues May Affect Your Closing
Title refers to the legal ownership of a piece of property. When a person holds title to real estate, they may sell it to a purchaser. Unfortunately, however, in almost all real estate transactions, there are common title issues that must be cleared up in order to transfer ownership of the property from the seller to the buyer that may affect your closing.
If you are planning on buying or selling residential or commercial real estate in Georgia, contact us as soon as possible for a consultation.
Below are five common title problems that may affect your closing:
Unknown Easements – Easements are limited third-party property rights. Sellers sometimes, however, fail to disclose easements prior to closing, and this can cause unexpected difficulties for buyers.
Errors in Public Records – Filing and clerical mistakes sometimes cause problems for the sellers and purchasers of property in Georgia. For example, when mortgage documentation is lost or incorrectly filed, it can result in the denial of title to a home buyer.
Unknown Liens – When a property’s previous owner had debt issues, a lien may have been placed on their property. A lien gives a lienholder the right to possess a piece of property belonging to another person until the debt owed to the lienholder is paid. Therefore, it’s important to determine prior to purchasing a piece of property whether any liens are present.
Undiscovered Encumbrances – An encumbrance is an interest in, right to, or legal liability connected to a piece of property. Types of encumbrances include liens, deed restrictions, easements, and encroachments. All encumbrances should be identified prior to the purchase of a piece of property.
Boundary/Survey Disputes– Finally, a potential property purchaser should have a survey conducted prior to closing, as confusion regarding property boundaries can cause problems down the road, including disputes with adjoining property owners and value issues.
A title search can help uncover title defects tied to your property. Any title issue will need to be resolved in order to offer a clear title to the buyer.
Getting ready to buy a home in Georgia?
Buying or selling a home is a big decision and can often be complicated. Real estate title problems are common; however, any defects can be easily rectified in most cases. Having an experienced real estate attorney on your side through the closing process can ensure that the transaction proceeds smoothly.
Questions about the common title problems discussed here? Contact us to learn how we can assist you with clearing your title when buying real estate in Georgia.