Title defects present a barrier to transferring ownership of a property from one party to the next. Until resolved, these road blocks prevent the clear-to-close on a real estate transaction. Though there are numerous types of title defects that can occur, we finish our three-part series with a look at how some of the more common types of problems are resolved. Review Part One and Part Two of our series to learn more on clearing other types of title defects.
- Boundary Disputes: This situation sometimes occurs if a survey is requested by the buyer. To mitigate a boundary discrepancy, the title agent confers with the seller’s side to determine the exact nature of the dispute. The process starts by reviewing the legal survey, and working to ascertain at what point the dispute developed and why. The seller must then take care of any encroachments prior to closing. In instances where the seller and neighboring landowners concur to allow mobile or immobile structures to remain in place, a written agreement must be signed by the current owner and neighboring party. The buyers must be informed and approve of the arrangement as well. If the encroachment has occurred over a long period of time, the seller and their representative may attempt to reestablish clear title through adverse possession. These types of disputes typically are resolved by legal representation through the court system.
- Incorrect Representation of Marital Status: When title search reveals misrepresentation of marital status on a deed, the settlement office or attorney who prepared the deed must work to resolve the defect. This is performed by filing a deed of correction, or quit claim deed, through the Clerk of Court’s office.
- Zoning and Easements: These types of title concerns often involve requesting a letter of compliance from the zoning office in the local municipality. Typically, the seller’s representative must request a new survey, and submit it to the Land Recording Office. In the case of a private easement, the property owner must work with the utility company to have it identified and described on an updated land survey.
Protect Your Interest With Title Insurance
Title insurance is your best method of protection against title defects. Having an Owner’s Title Insurance Policy covers legal and other costs of correcting clouds on title, and gives you peace of mind when title defects threaten your real estate investment.
Our friendly, knowledgeable team is always ready to assist! Contact Linear Title & Escrow today for more on title defect resolution.