5 Common Title Problems to Look For

searching for common title problems

A title company can conduct a search to locate any of these five most common title problems before you complete your home purchase.

Before you finish the home buying process, a title company will conduct a title search to determine whether the title for your new property has any associated problems that need to be resolved before you can take ownership. Often, there won’t be any significant title issue with your property. However, sometimes issues can arise, and it is crucial that you select a title company that knows how to resolve those issues. Colony Title Associates will make sure to check your title for each of the following five common title problems to ensure a smooth homebuying process. 

Existing Liens

Unpaid liens are a persistent challenge to selling and purchasing homes. Any potential existing monetary responsibilities associated with a property must be discovered in a thorough title search to prepare the title for new ownership. These can include construction liens, leftover from home projects put in place by the previous owner or owners.

Breaks in the Chain of Title

As a home gets passed down through inheritance or new purchases, the chain of title develops. If a link in this chain is broken or missing, this can cause problems during the closing process. Acquiring title insurance can help protect homebuyers from these breaks, which may include errors in documents or name omissions. 

Incorrect Legal Descriptions

Every property deed includes a legal description of the boundaries of a property. This description gets copied each time a property is transferred from one party to another, but problems can arise. Typos are possible during the copying process, and property boundaries can change over time if parties buy or sell adjacent plots of land. Common title problems can include typos in these legal descriptions or a failure to notice a change until years later. 

Foreclosure Issues

A few common title problems may arise when you purchase a foreclosed property. If the lender hasn’t notified all parties, the title wasn’t taken from the original owner, or the chain of title is broken, acquiring the new title can become quite challenging.

Unknown Heirs

When a property owner dies, the property may be passed down to their heirs. Years later, however, an unknown heir may come forward and contest the will or claim ownership of the property. This can often result in a legal dispute, so if possible, it is better to learn of any potential heirs before completing the title transfer. 

A Title Company You Can Trust: Colony Title

At Colony Title, we will help you through the process of getting your property’s title and help you avoid the pitfalls of hidden costs while you buy your home. We are also well trained in identifying any and all errors in public records and helping you resolve them. We specialize in real estate title insurance in both Maryland and Washington, D.C., and we will perform an expert title search, check through all past documentation, and examine records for any fraud or forgery. For more information on how we can get you into the home of your dreams, contact us online or give us a call at (410) 884-1160. To get more updates on housing markets and how to get into your home, follow us on Facebook, Twitter, LinkedIn, and Google+.

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