When it comes to real estate transactions, the title is a critical component. A title is a legal document that proves ownership of a property, and any issues with the title can lead to complications in a real estate deal.

Read on as we explore some of the common title issues that can arise and provide insights on how to resolve them.

Title liens
One of the most common title issues is the presence of liens on a property. Liens can be placed on a property for various reasons, such as unpaid property taxes, unpaid contractors, or judgments against the property owner. To resolve this issue, the seller must clear the liens before transferring the title. This may involve paying off outstanding debts or negotiating with creditors to release the liens.

Errors and omissions
Title searches can sometimes uncover errors or omissions in the property’s history. These can range from simple clerical errors to missing information about past owners. To resolve this issue, the title company may work with the seller to correct any inaccuracies and ensure that the title is clean and accurate.

Boundary disputes
Boundary disputes can arise when the property lines are unclear or disputed by neighbors. These disputes can lead to title issues and potentially costly legal battles. Resolving boundary disputes often requires a survey of the property and (at times) negotiations with the neighboring property owners to establish clear boundaries and update the title accordingly.

Forgery and fraud
In some cases, titles can be compromised due to forgery or fraud. This may involve someone falsely claiming ownership of the property or fraudulent transactions. To resolve such issues, the affected parties may need to involve law enforcement and legal experts to investigate and rectify the situation.

Unreleased mortgages
Unreleased mortgages are a common title issue. Sometimes, a previous mortgage on the property has been paid off, but the lender failed to release the lien on the title. To resolve this issue, the seller should work with the lender to obtain a release of the mortgage, ensuring that the title is clear for the new buyer.

Outstanding easements
Easements are legal rights that allow someone other than the owner to use the property for a specific purpose. Discovering an outstanding easement can be a title issue, as it can affect the buyer’s intended use of the property. Resolving this issue may require negotiating with the easement holder or, in some cases, seeking a court order to modify or remove the easement.

Title insurance
One of the best ways to protect against potential title issues is by purchasing owner’s title insurance. Owner’s title insurance provides coverage for losses due to defects in the title. If a title issue arises, the title insurance policy can help cover the costs of resolving the problem.

Quiet title action
In some cases, when title issues are particularly complex and cannot be resolved through negotiation, a quiet title action may be necessary. This legal process allows a court to establish clear ownership of the property and remove any competing claims or clouds on the title.

Common title issues can complicate real estate transactions, but with the right approach and the involvement of professionals, these issues can be successfully resolved. Whether it’s clearing liens, correcting errors, resolving boundary disputes, or addressing other concerns, taking the necessary steps to resolve title issues is essential for a smooth, streamlined real estate transaction. 

To learn more about common title issues and resolution, please contact Linear Title & Escrow in Virginia Beach, VA.