Common Title Issues and How to Resolve Them

Owning a home is a dream come true, but it also means staying vigilant about potential issues that could affect your property’s title. Title problems can arise unexpectedly, and knowing how to handle them can protect your investment and give you peace of mind. Here’s a look at some common title issues and how to resolve them effectively.

Q: What are outstanding liens, and how can they affect my property?

A: An outstanding lien is a legal claim against your property due to unpaid debts, such as mortgages, taxes, or contractor fees. These liens can cause trouble if you try to sell or refinance your home.

Resolution: Regularly check for any liens on your property by reviewing public records. If you find a lien, work with a title company or attorney to settle the debt or negotiate with the lienholder to release the lien. Clearing these liens is essential to maintaining a clear title.

Q: How can errors in public records impact my property's title?

A: Mistakes in public records, such as clerical errors or incorrect filings, can affect your property’s deed or survey, leading to potential ownership or boundary issues.

Resolution: If you discover discrepancies, contact a title company or real estate attorney to help correct the records. They will file the necessary documents to amend public records and ensure your title is accurate.

Q: Who are unknown heirs, and why should I be concerned about them?

A: Undisclosed heirs might claim ownership of your property if a previous owner passed away without a clear will or if heirs were unaware of their inheritance.

Resolution: A thorough title search and an affidavit of heirship can help identify potential heirs. Title insurance can protect you from future claims by unknown heirs, ensuring you won't face legal battles over ownership.

Q: What should I do if I encounter boundary disputes with my neighbors?

A: Discrepancies in property boundaries can lead to disputes with neighbors, often arising from incorrect surveys or misunderstandings about property lines.

Resolution: Conduct a new survey of your property to confirm the boundaries. If disputes arise, negotiate with your neighbors to reach a mutual agreement. Title insurance may cover the legal costs of resolving these disputes.

Q: How can forgeries and fraud affect my property title?

A: Forged documents or fraudulent activities, such as forged signatures on deeds, can compromise your title’s legitimacy, leading to ownership disputes and legal challenges.

Resolution: Title insurance is your best defense against forgeries and fraud. It protects you by covering legal expenses to defend against fraudulent claims and ensures compensation if the claim is successful.

Q: What are unrecorded easements, and how can they impact my property?

A: An easement gives someone the right to use a portion of your property for a specific purpose, such as a utility company accessing power lines. Unrecorded easements can cause problems if discovered later.

Resolution: Regularly review your title to identify any existing easements. If unrecorded easements are discovered, title insurance can help cover any resulting legal issues or losses.

Staying Proactive

Title issues can be daunting, but knowing what to look out for and how to resolve them can save you time, money, and stress. Regularly reviewing your title and investing in title insurance are crucial steps to safeguard your home. By addressing these common title problems proactively, you can ensure a smoother, more secure homeownership experience.

Owning a home is more than just having a place to live—it's about protecting your investment. Stay informed and proactive, and your dream home will continue to be a source of pride and security for years to come.

Please note that this information is provided for general informational purposes only, is subject to change without notice, and should not be relied upon. Please contact your title company, real estate attorney, or other legal advisors for further information.