Title Defects & Encumbrances: How They Can Affect a Title

title defects

A title examination can help root out any title defects or encumbrances before they become a problem.

A title search is one of the first steps toward purchasing a property, and it involves uncovering problems associated with the title that may impede the buyer’s ownership rights. Problems with the title can be classified into one of two camps: title defects and title encumbrances. In this article we’ll give you a quick rundown of what they are and how they can affect the title on your real estate property.

Title Defects

A title defect can cause considerable problems for a buyer, and often involve  errors like omissions, mistakes in deed recording, incorrect marital status, and fraudulent signatures. A title defect may cause considerable headaches. If an heir of a property were to convey the property without opening an estate, for example, who is to say that there were not other heirs that should have signed off? Working with a qualified title insurance company is the best way to avoid these sorts of issues prior to purchase, and protect yourself from future claims.

Title Encumbrances

When a claim is made on real property by someone other than the property owner, that is considered a title encumbrance. Encumbrances can also include liens, deed restrictions, easements, and encroachments. These problems restrict the use of the property, which is a significant problem for the buyer.

Resolving Title Defects and Encumbrances

Encumbrances can be filed in many different places according to the type of lien and where the property in question is located. A title company can identify any restrictions placed on a property and root out any title defects that could interfere with the title. It’s imperative to have your title company do an examination before purchasing a property so that you can avoid any unwanted surprises later down the road.

Get in Touch with Colony Title Today

At Colony Title, we’ll make sure you don’t run into any complications with your property’s title and help you find cost effective solutions. Specializing in real estate title insurance in Maryland and DC, our agents will perform a title search, check all past documentation, and seek to uncover any fraud or forgery associated with the title. Protect yourself from legal intervention caused by property disputes and call Colony Title today!

If you have questions, the Maryland real estate insurance experts at Colony Title Associates can be reached by calling 410-884-1160 or visit ColonyTitle.com today! 1

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